Sonic Automotive, Inc. $SAH Shares Sold by Universal Beteiligungs und Servicegesellschaft mbH

Key Points

• Universal Beteiligungs reduced its stake in Sonic Automotive by 34.4% in Q4, selling 13,679 shares and leaving 26,051 shares worth about $1.62M; institutional investors own roughly 46.9% of the stock.
• Q1 results beat on EPS ($1.62 vs. $1.40) driven by record EchoPark profitability, but revenue was essentially flat and slightly below estimates ($3.69B vs. ~$3.73B) while net margins remain thin (~0.7–0.8%).
• Management boosted the quarterly dividend to $0.41 (a 7.9% raise, 2.1% yield) and expanded buybacks, and insiders including Paul Rusnak made purchases, signaling confidence in cash flow and capital allocation.

Universal Beteiligungs und Servicegesellschaft mbH lowered its stake in shares of Sonic Automotive, Inc. (NYSE:SAH - Free Report) by 34.4% during the 4th quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 26,051 shares of the company's stock after selling 13,679 shares during the quarter. Universal Beteiligungs und Servicegesellschaft mbH owned about 0.08% of Sonic Automotive worth $1,616,000 as of its most recent SEC filing.

Several other hedge funds have also recently modified their holdings of the stock. Wealth Enhancement Advisory Services LLC increased its holdings in shares of Sonic Automotive by 1.9% during the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 14,426 shares of the company's stock valued at $924,000 after acquiring an additional 273 shares in the last quarter. CWM LLC increased its holdings in shares of Sonic Automotive by 11.3% during the fourth quarter. CWM LLC now owns 2,858 shares of the company's stock valued at $177,000 after acquiring an additional 291 shares in the last quarter. Creative Planning increased its holdings in shares of Sonic Automotive by 12.4% during the third quarter. Creative Planning now owns 3,000 shares of the company's stock valued at $228,000 after acquiring an additional 332 shares in the last quarter. Northwestern Mutual Wealth Management Co. boosted its position in Sonic Automotive by 992.5% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 437 shares of the company's stock valued at $35,000 after buying an additional 397 shares during the last quarter. Finally, CoreCap Advisors LLC boosted its position in Sonic Automotive by 28.0% in the fourth quarter. CoreCap Advisors LLC now owns 1,829 shares of the company's stock valued at $113,000 after buying an additional 400 shares during the last quarter. Institutional investors and hedge funds own 46.92% of the company's stock.

Sonic Automotive Trading Down 2.8%

Sonic Automotive stock opened at $76.54 on Friday. The company has a current ratio of 1.09, a quick ratio of 0.32 and a debt-to-equity ratio of 1.80. Sonic Automotive, Inc. has a 12 month low of $54.11 and a 12 month high of $89.62. The stock's 50 day simple moving average is $65.54 and its two-hundred day simple moving average is $64.40. The firm has a market cap of $2.57 billion, a PE ratio of 24.38, a P/E/G ratio of 2.24 and a beta of 0.89.

Sonic Automotive (NYSE:SAH - Get Free Report) last released its quarterly earnings data on Thursday, April 30th. The company reported $1.62 EPS for the quarter, topping the consensus estimate of $1.40 by $0.22. Sonic Automotive had a return on equity of 22.06% and a net margin of 0.72%.The business had revenue of $3.69 billion for the quarter, compared to analyst estimates of $3.73 billion. During the same quarter in the prior year, the firm posted $1.48 EPS. The business's quarterly revenue was up 1.0% compared to the same quarter last year. Analysts anticipate that Sonic Automotive, Inc. will post 6.54 earnings per share for the current year.

Sonic Automotive Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 15th. Shareholders of record on Monday, June 15th will be given a $0.41 dividend. The ex-dividend date is Monday, June 15th. This represents a $1.64 annualized dividend and a yield of 2.1%. This is a boost from Sonic Automotive's previous quarterly dividend of $0.38. Sonic Automotive's payout ratio is currently 44.84%.

Wall Street Analyst Weigh In

A number of brokerages recently commented on SAH. Weiss Ratings reiterated a "hold (c)" rating on shares of Sonic Automotive in a research report on Friday, March 27th. Needham & Company LLC reiterated a "buy" rating and issued a $90.00 target price on shares of Sonic Automotive in a research report on Tuesday, March 31st. Stephens dropped their target price on Sonic Automotive from $68.00 to $67.00 and set an "equal weight" rating on the stock in a research report on Thursday, February 19th. Barclays set a $67.00 target price on Sonic Automotive in a research report on Monday, February 23rd. Finally, JPMorgan Chase & Co. upped their target price on Sonic Automotive from $65.00 to $67.00 and gave the company an "underweight" rating in a research report on Friday, April 17th. Three investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $77.50.

Key Sonic Automotive News

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

• Positive Sentiment: EPS beat and EchoPark strength — Sonic reported Q1 EPS of $1.62 versus consensus near $1.40, driven in part by record profitability at its EchoPark used-car business; management highlighted EchoPark as a key profit driver. Read More.
• Positive Sentiment: Buyback and dividend boost — Management increased the share repurchase program and raised the quarterly dividend to $0.41 (a 7.9% raise), signaling confidence in cash flow and returning capital to shareholders. Read More.
• Positive Sentiment: Analyst sentiment improving — Zacks upgraded Sonic from “strong sell” to “hold,” reflecting improving analyst views after the quarter and shareholder actions.
• Neutral Sentiment: Revenue essentially flat / slight miss — Total Q1 revenue was $3.69B, up ~1% year-over-year but slightly below street consensus (~$3.73B), suggesting top-line growth remains tepid even as margins improved. Read More.
• Neutral Sentiment: Extensive management commentary available — Full earnings-call transcripts and the investor presentation provide detail on used-car margins, inventory strategy and capital allocation for investors who want to dig into drivers and risks. Read More.
• Negative Sentiment: Low net margin and modest profitability — Despite the EPS beat, net margin remains thin (reported ~0.78%) and return on equity figures highlight sensitivity to volume and used-car dynamics; investors may be cautious that earnings strength depends on EchoPark performance and buybacks rather than broad margin expansion. Read More.

Insider Buying and Selling

In related news, major shareholder Paul P. Rusnak acquired 11,481 shares of the stock in a transaction on Tuesday, February 17th. The shares were acquired at an average price of $59.95 per share, for a total transaction of $688,285.95. Following the transaction, the insider owned 5,100,000 shares in the company, valued at approximately $305,745,000. This trade represents a 0.23% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. In the last 90 days, insiders purchased 100,000 shares of company stock valued at $5,994,472. Corporate insiders own 43.68% of the company's stock.

Sonic Automotive 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.

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