Insider Buying: Sonic Automotive (NYSE:SAH) Major Shareholder Acquires $1,287,877.50 in Stock

Key Points

• Major shareholder Paul Rusnak bought 21,645 Sonic Automotive shares at an average price of $59.50, investing approximately $1.29 million and increasing his ownership to 5.12 million shares.
• Sonic Automotive shares fell 1.9% to $61.41, well below their 50-day and 200-day moving averages. The company recently exceeded quarterly EPS and revenue estimates, with revenue up 7.6% year over year.
• The company declared a quarterly dividend of $0.41 per share, equivalent to a $1.64 annualized payout and a 2.7% yield. Analysts’ consensus rating is “Hold,” with an average price target of $95.50.

Sonic Automotive, Inc. (NYSE:SAH - Get Free Report) major shareholder Paul Rusnak acquired 21,645 shares of the firm's stock in a transaction dated Thursday, October 1st. The shares were purchased at an average price of $59.50 per share, with a total value of $1,287,877.50. Following the acquisition, the insider owned 5,121,645 shares of the company's stock, valued at approximately $304,737,877.50. This represents a 0.42% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Large shareholders that own more than 10% of a company's shares are required to disclose their sales and purchases with the SEC.

Sonic Automotive Stock Down 1.9%

Shares of NYSE:SAH traded down $1.22 during trading on Tuesday, reaching $61.41. 146,558 shares of the stock were exchanged, compared to its average volume of 286,585. Sonic Automotive, Inc. has a 1-year low of $54.11 and a 1-year high of $113.67. The stock has a fifty day moving average of $76.95 and a two-hundred day moving average of $78.21. The company has a debt-to-equity ratio of 1.88, a current ratio of 1.01 and a quick ratio of 0.25. The firm has a market cap of $1.94 billion, a price-to-earnings ratio of 9.80, a price-to-earnings-growth ratio of 1.01 and a beta of 0.92.

Sonic Automotive (NYSE:SAH - Get Free Report) last posted its quarterly earnings results on Thursday, July 30th. The company reported $1.82 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.75 by $0.07. Sonic Automotive had a net margin of 1.37% and a return on equity of 20.75%. The business had revenue of $3.93 billion during the quarter, compared to the consensus estimate of $3.78 billion. During the same quarter last year, the firm posted $2.19 EPS. Sonic Automotive's revenue was up 7.6% compared to the same quarter last year. Research analysts anticipate that Sonic Automotive, Inc. will post 6.92 earnings per share for the current fiscal year.

Sonic Automotive Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Tuesday, September 15th will be paid a $0.41 dividend. The ex-dividend date of this dividend is Tuesday, September 15th. This represents a $1.64 annualized dividend and a dividend yield of 2.7%. Sonic Automotive's dividend payout ratio is 26.16%.

Hedge Funds Weigh In On Sonic Automotive

Institutional investors have recently added to or reduced their stakes in the stock. Hsbc Holdings PLC grew its holdings in Sonic Automotive by 106.2% during the second quarter. Hsbc Holdings PLC now owns 27,871 shares of the company's stock valued at $2,328,000 after purchasing an additional 14,352 shares during the period. Empowered Funds LLC raised its stake in shares of Sonic Automotive by 64.4% in the first quarter. Empowered Funds LLC now owns 131,302 shares of the company's stock valued at $9,003,000 after buying an additional 51,420 shares during the period. First Trust Advisors LP lifted its position in shares of Sonic Automotive by 80.5% during the 1st quarter. First Trust Advisors LP now owns 37,576 shares of the company's stock valued at $2,577,000 after buying an additional 16,753 shares during the last quarter. Dimensional Fund Advisors LP grew its stake in shares of Sonic Automotive by 3.8% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,313,857 shares of the company's stock worth $90,088,000 after acquiring an additional 48,599 shares during the period. Finally, Denali Advisors LLC bought a new position in shares of Sonic Automotive during the 2nd quarter worth $4,799,000. Institutional investors own 46.92% of the company's stock.

Analyst Ratings Changes

Several equities research analysts recently issued reports on SAH shares. UBS Group upped their price target on Sonic Automotive from $90.00 to $109.00 and gave the stock a "buy" rating in a report on Friday, July 10th. Stephens set a $89.00 target price on shares of Sonic Automotive in a research note on Monday, July 13th. Weiss Ratings downgraded shares of Sonic Automotive from a "buy (b-)" rating to a "hold (c+)" rating in a report on Wednesday, September 16th. Seaport Research Partners lowered shares of Sonic Automotive from a "buy" rating to a "neutral" rating and raised their price target for the company from $185.00 to $205.00 in a research report on Friday, July 17th. Finally, Bank of America upped their price objective on shares of Sonic Automotive from $91.00 to $108.00 and gave the stock a "buy" rating in a research report on Thursday, July 9th. Four analysts have rated the stock with a Buy rating, four have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $95.50.

Sonic Automotive Company Profile

Sonic Automotive, Inc is an automotive retailer headquartered in Charlotte, North Carolina. The company operates franchised dealerships that sell new and used cars and light trucks from a range of manufacturers, along with related automotive products and services.

Its dealership operations provide vehicle financing and insurance products, parts and maintenance services, collision repair, and other after-sales support. Sonic Automotive also operates EchoPark Automotive, a used-vehicle retail business focused on providing a broad selection of pre-owned vehicles and related services.

Founded in 1997 by automotive entrepreneur O.

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