Sonic Automotive, Inc. (NYSE:SAH) Stock Has Consensus Price Target of $84.75 According to Analysts

Key Points

• Analysts hold a mixed view of Sonic Automotive, with three sell, three hold and four buy ratings; the consensus recommendation is “Hold” and the average price target is $84.75.
• Third-quarter results fell short of expectations: adjusted EPS was $1.30 versus a $1.66 consensus, while revenue of $3.99 billion slightly missed estimates and rose just 0.4% year over year.
• Sonic Automotive declared a quarterly dividend of $0.41 per share, equal to a 2.6% annualized yield, while major shareholder Paul Rusnak purchased more than $1.65 million of stock.

Sonic Automotive, Inc. (NYSE:SAH - Get Free Report) has earned a consensus recommendation of "Hold" from the ten research firms that are currently covering the firm, Marketbeat reports. Three investment analysts have rated the stock with a sell recommendation, three have assigned a hold recommendation and four have assigned a buy recommendation to the company. The average 1 year target price among brokers that have issued ratings on the stock in the last year is $84.75.

SAH has been the topic of a number of research reports. Stephens set a $89.00 price objective on Sonic Automotive in a research report on Monday, July 13th. Citigroup boosted their price target on shares of Sonic Automotive from $95.00 to $115.00 and gave the company a "buy" rating in a report on Monday, August 3rd. Seaport Research Partners cut shares of Sonic Automotive from a "buy" rating to a "neutral" rating and increased their price objective for the company from $185.00 to $205.00 in a research note on Friday, July 17th. Needham & Company LLC dropped their price objective on shares of Sonic Automotive from $139.00 to $96.00 and set a "buy" rating for the company in a research note on Friday. Finally, Zacks Research lowered shares of Sonic Automotive from a "hold" rating to a "strong sell" rating in a research report on Monday, October 12th.

Key Stories Impacting Sonic Automotive

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

• Positive Sentiment: Needham & Company maintained a Buy rating and set a $96 price target, implying substantial upside from recent levels. However, the target was reduced from $139, signaling more cautious expectations. Needham analyst rating
• Positive Sentiment: Sonic Automotive declared a quarterly dividend of $0.41 per share, or $1.64 annualized, representing an approximately 2.6% yield. The dividend is payable January 15, 2027, to shareholders of record as of December 15, 2026. Dividend announcement
• Neutral Sentiment: The company expects EchoPark’s fourth-quarter adjusted EBITDA to be $2 million to $4 million while launching a $5 million to $7 million brand investment. The spending could support longer-term growth but may weigh on near-term profitability. EchoPark outlook
• Negative Sentiment: Third-quarter adjusted earnings were $1.30 per share, $0.36 below the $1.66 consensus estimate and down from $1.41 a year earlier. Revenue of $3.99 billion also fell short of the $4.03 billion estimate and grew only 0.4% year over year, weighing on investor sentiment. Third-quarter earnings miss

Insider Activity

In other Sonic Automotive news, major shareholder Paul P. Rusnak bought 27,756 shares of the company's stock in a transaction on Monday, October 5th. The stock was bought at an average price of $59.76 per share, for a total transaction of $1,658,698.56. Following the transaction, the insider owned 5,149,401 shares of the company's stock, valued at approximately $307,728,203.76. The trade was a 0.54% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Over the last 90 days, insiders have bought 76,776 shares of company stock valued at $4,584,694. 43.68% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in SAH. State of Wyoming acquired a new position in Sonic Automotive in the 3rd quarter valued at $153,000. Inspire Investing LLC lifted its position in shares of Sonic Automotive by 30.0% during the 3rd quarter. Inspire Investing LLC now owns 10,442 shares of the company's stock valued at $630,000 after acquiring an additional 2,412 shares during the period. CoreCap Advisors LLC grew its holdings in shares of Sonic Automotive by 15.5% during the 3rd quarter. CoreCap Advisors LLC now owns 1,550 shares of the company's stock worth $94,000 after purchasing an additional 208 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new position in shares of Sonic Automotive in the second quarter worth $373,000. Finally, Ameritas Advisory Services LLC bought a new stake in Sonic Automotive during the second quarter worth about $88,000. 46.92% of the stock is owned by institutional investors and hedge funds.

Sonic Automotive Stock Performance

NYSE:SAH opened at $62.92 on Friday. The firm's 50-day moving average is $67.83 and its 200-day moving average is $73.09. The company has a market cap of $1.99 billion, a price-to-earnings ratio of 10.12, a PEG ratio of 1.21 and a beta of 0.92. The company has a debt-to-equity ratio of 1.88, a quick ratio of 0.25 and a current ratio of 1.01. Sonic Automotive has a 52-week low of $54.11 and a 52-week high of $113.67.

Sonic Automotive (NYSE:SAH - Get Free Report) last released its earnings results on Thursday, October 29th. The company reported $1.30 earnings per share for the quarter, missing the consensus estimate of $1.66 by ($0.36). Sonic Automotive had a net margin of 1.33% and a return on equity of 20.23%. The company had revenue of $3.99 billion during the quarter, compared to the consensus estimate of $4.03 billion. During the same quarter in the previous year, the business posted $1.41 EPS. The firm's quarterly revenue was up .4% on a year-over-year basis. Equities research analysts anticipate that Sonic Automotive will post 6.71 earnings per share for the current year.

Sonic Automotive Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, January 15th. Stockholders of record on Tuesday, December 15th will be paid a $0.41 dividend. This represents a $1.64 annualized dividend and a dividend yield of 2.6%. The ex-dividend date of this dividend is Tuesday, December 15th. Sonic Automotive's dividend payout ratio (DPR) is 26.16%.

Sonic Automotive Company Profile

Sonic Automotive, Inc is a U.S.-based automotive retailer headquartered in Charlotte, North Carolina. The company operates franchised dealerships that sell new and pre-owned vehicles from a range of automobile manufacturers, along with related automotive products and services.

Its dealership operations provide vehicle financing and insurance products, maintenance and repair services, replacement parts, and collision-repair services. Sonic Automotive also operates EchoPark Automotive, a used-vehicle business focused on offering pre-owned vehicles and related finance and service products through dedicated retail locations.

Founded in 1997 by automotive entrepreneur O.

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