Sonic Automotive, Inc. (NYSE:SAH) Receives Consensus Rating of “Hold” from Analysts

Sonic Automotive, Inc. (NYSE:SAH) has been given a consensus rating of “Hold” by the ten analysts that are presently covering the stock, Marketbeat Ratings reports. One equities research analyst has rated the stock with a sell rating, five have issued a hold rating and four have issued a buy rating on the company. The average 1-year price target among brokers that have issued ratings on the stock in the last year is $77.75.

A number of equities research analysts recently commented on the company. Zacks Research raised Sonic Automotive from a “strong sell” rating to a “hold” rating in a report on Tuesday, January 13th. Wall Street Zen lowered Sonic Automotive from a “buy” rating to a “hold” rating in a report on Sunday, January 11th. Stephens dropped their price target on shares of Sonic Automotive from $68.00 to $67.00 and set an “equal weight” rating on the stock in a research report on Thursday. Needham & Company LLC restated a “buy” rating and issued a $90.00 price objective on shares of Sonic Automotive in a research report on Thursday. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Sonic Automotive in a report on Monday, December 29th.

Sonic Automotive Trading Up 3.1%

Sonic Automotive stock opened at $66.56 on Monday. The company has a debt-to-equity ratio of 1.68, a quick ratio of 0.27 and a current ratio of 1.02. The stock has a market cap of $2.27 billion, a PE ratio of 19.63 and a beta of 0.93. The stock has a 50-day moving average of $62.61 and a two-hundred day moving average of $68.80. Sonic Automotive has a one year low of $52.00 and a one year high of $89.62.

Sonic Automotive (NYSE:SAH) last posted its quarterly earnings data on Wednesday, February 18th. The company reported $1.52 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.53 by ($0.01). Sonic Automotive had a net margin of 0.78% and a return on equity of 21.56%. The company had revenue of $3.87 billion for the quarter, compared to analyst estimates of $3.94 billion. During the same quarter last year, the company earned $1.51 EPS. The business’s revenue was down .6% compared to the same quarter last year. On average, research analysts anticipate that Sonic Automotive will post 6.14 EPS for the current fiscal year.

Sonic Automotive Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, April 15th. Investors of record on Friday, March 13th will be given a dividend of $0.38 per share. This represents a $1.52 annualized dividend and a dividend yield of 2.3%. The ex-dividend date is Friday, March 13th. Sonic Automotive’s dividend payout ratio is 44.84%.

Sonic Automotive News Roundup

Here are the key news stories impacting Sonic Automotive this week:

• Positive Sentiment: Large insider accumulation — Major shareholder Paul P. Rusnak bought tens of thousands of shares in multiple transactions in February, raising his stake to roughly ~5.1M shares; repeated insider purchases at ~\$60 signal board-level confidence and likely supported buying interest. SEC Filing: Insider Purchases
• Positive Sentiment: Dividend declared — Sonic announced a quarterly dividend of $0.38/share (ex-dividend March 13; payable April 15), implying a ~2.4% yield and a ~41% payout ratio, which can attract income-focused investors and help support the share price.
• Positive Sentiment: Record gross profit highlighted — Management pointed to record gross profit in Q4, suggesting operational improvements that could underwrite margin recovery if sustained. Investing.com: Record Gross Profit
• Neutral Sentiment: Earnings materials available — The Q4 call transcript and slides were posted for deeper review (F&I, EchoPark/used-vehicle trends and inventory commentary are areas analysts will parse for guidance changes). Earnings Call Transcript
• Neutral Sentiment: Analyst views remain mixed — Needham reaffirmed a buy and a $90 target while Stephens trimmed its target to $67 and is at equal weight; mixed research keeps near-term consensus ambiguous and can amplify volatility. The Fly: PT Change
• Negative Sentiment: Slight Q4 miss and revenue pressure — Q4 EPS of $1.52 missed consensus by $0.01 and revenue of $3.87B trailed estimates (~$3.94B); revenue fell ~0.6% YoY and net margin remained thin, giving short-term bears ammunition about demand and margin durability. Zacks: Q4 Miss
• Negative Sentiment: Structural concerns flagged by analysts — Commentary and follow-up pieces note elevated debt levels, tariff exposure and margin risks that could cap the stock’s near-term upside absent clearer sales/margin improvement. Zacks: How to Approach Post-Q4

Insiders Place Their Bets

In other news, major shareholder Paul P. Rusnak acquired 48,540 shares of the stock in a transaction that occurred on Friday, February 13th. The shares were bought at an average cost of $59.92 per share, for a total transaction of $2,908,516.80. Following the acquisition, the insider owned 5,088,519 shares in the company, valued at approximately $304,904,058.48. This represents a 0.96% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Over the last 90 days, insiders have bought 100,000 shares of company stock valued at $5,994,472. Company insiders own 42.65% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Nisa Investment Advisors LLC grew its holdings in shares of Sonic Automotive by 3.8% during the second quarter. Nisa Investment Advisors LLC now owns 4,509 shares of the company’s stock worth $362,000 after buying an additional 165 shares in the last quarter. Mitsubishi UFJ Trust & Banking Corp raised its holdings in Sonic Automotive by 1.2% in the 4th quarter. Mitsubishi UFJ Trust & Banking Corp now owns 15,603 shares of the company’s stock valued at $965,000 after acquiring an additional 190 shares during the last quarter. Wealth Enhancement Advisory Services LLC lifted its stake in Sonic Automotive by 1.9% in the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 14,426 shares of the company’s stock worth $924,000 after purchasing an additional 273 shares in the last quarter. Northwestern Mutual Wealth Management Co. grew its position in shares of Sonic Automotive by 8.6% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 3,577 shares of the company’s stock valued at $221,000 after purchasing an additional 284 shares in the last quarter. Finally, CWM LLC increased its holdings in shares of Sonic Automotive by 11.3% in the fourth quarter. CWM LLC now owns 2,858 shares of the company’s stock valued at $177,000 after purchasing an additional 291 shares during the last quarter. Hedge funds and other institutional investors own 46.92% of the company’s stock.

Sonic Automotive Company Profile

Sonic Automotive, Inc is a publicly traded automotive retailer that operates a network of franchised new-car dealerships and used-vehicle dealerships across the United States. Headquartered in Charlotte, North Carolina, the company offers a range of services that include vehicle sales, leasing, finance and insurance products, service and parts, and collision repair. Sonic Automotive’s dealerships represent numerous major automotive brands, and the company also markets a broad selection of pre-owned vehicles under its own banner.

In addition to its core dealership operations, Sonic Automotive has developed digital retail capabilities that allow customers to research, shop and complete transactions online.