Sonic Automotive (NYSE:SAH) Major Shareholder Purchases 1,119 Shares of Company Stock

Key Points

• Major shareholder Paul Rusnak bought 1,119 Sonic Automotive shares for approximately $67,000, increasing his direct stake to 5.15 million shares valued at about $308.5 million.
• Sonic Automotive shares fell 0.8% to $60.52, despite the company reporting quarterly revenue of $3.93 billion and EPS of $1.82, both ahead of analyst expectations. The company also declared a quarterly dividend of $0.41 per share, representing a 2.7% yield.
• Analyst sentiment remains mixed: the stock has an overall “Hold” rating with an average price target of $90.12, while JPMorgan and Morgan Stanley downgraded their targets and assigned “Underweight” ratings.

Sonic Automotive, Inc. (NYSE:SAH - Get Free Report) major shareholder Paul Rusnak acquired 1,119 shares of the business's stock in a transaction dated Tuesday, October 6th. The stock was acquired at an average cost of $59.90 per share, with a total value of $67,028.10. Following the purchase, the insider directly owned 5,150,520 shares in the company, valued at $308,516,148. This represents a 0.02% increase in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Large shareholders that own at least 10% of a company's shares are required to disclose their transactions with the SEC.

Sonic Automotive Trading Down 0.8%

Shares of NYSE SAH traded down $0.47 during midday trading on Wednesday, reaching $60.52. The company had a trading volume of 452,914 shares, compared to its average volume of 288,546. Sonic Automotive, Inc. has a one year low of $54.11 and a one year high of $113.67. The company has a quick ratio of 0.25, a current ratio of 1.01 and a debt-to-equity ratio of 1.88. The firm's fifty day moving average price is $76.08 and its 200-day moving average price is $78.21. The stock has a market cap of $1.91 billion, a PE ratio of 9.65, a price-to-earnings-growth ratio of 1.01 and a beta of 0.92.

Sonic Automotive (NYSE:SAH - Get Free Report) last issued its earnings results on Thursday, July 30th. The company reported $1.82 earnings per share (EPS) for the quarter, topping 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 firm had revenue of $3.93 billion for the quarter, compared to analysts' expectations of $3.78 billion. During the same quarter last year, the business earned $2.19 earnings per share. The business's revenue was up 7.6% on a year-over-year basis. On average, equities research analysts anticipate that Sonic Automotive, Inc. will post 6.92 earnings per share for the current year.

Sonic Automotive Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Tuesday, September 15th will be given a dividend of $0.41 per share. The ex-dividend date of this dividend is Tuesday, September 15th. This represents a $1.64 dividend on an annualized basis and a yield of 2.7%. Sonic Automotive's dividend payout ratio is presently 26.16%.

Institutional Investors Weigh In On Sonic Automotive

Hedge funds and other institutional investors have recently bought and sold shares of the business. Heartland Advisors Inc. bought a new stake in Sonic Automotive in the 1st quarter valued at $8,450,000. Denali Advisors LLC purchased a new position in shares of Sonic Automotive during the second quarter valued at about $4,799,000. Empowered Funds LLC grew its position in shares of Sonic Automotive by 64.4% during the first quarter. Empowered Funds LLC now owns 131,302 shares of the company's stock valued at $9,003,000 after purchasing an additional 51,420 shares in the last quarter. Dimensional Fund Advisors LP increased its holdings in shares of Sonic Automotive by 3.8% in the first quarter. Dimensional Fund Advisors LP now owns 1,313,857 shares of the company's stock worth $90,088,000 after purchasing an additional 48,599 shares during the last quarter. Finally, Public Employees Retirement System of Ohio purchased a new stake in shares of Sonic Automotive in the second quarter worth about $2,951,000. Hedge funds and other institutional investors own 46.92% of the company's stock.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on SAH shares. JPMorgan Chase & Co. reduced their target price on Sonic Automotive from $72.00 to $64.00 and set an "underweight" rating on the stock in a research note on Tuesday. Morgan Stanley decreased their price objective on shares of Sonic Automotive from $72.00 to $57.00 and set an "underweight" rating for the company in a report on Monday. 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 research report on Monday, August 3rd. UBS Group lowered their price objective on shares of Sonic Automotive from $107.00 to $74.00 and set a "buy" rating for the company in a report on Wednesday. Finally, Bank of America upped their target price on Sonic Automotive from $91.00 to $108.00 and gave the stock a "buy" rating in a report on Thursday, July 9th. Four equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $90.12.

Key Stories Impacting Sonic Automotive

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

• Positive Sentiment: Major shareholder Paul Rusnak purchased 27,756 shares for approximately $1.66 million at an average price of $59.76, following a separate purchase of 21,645 shares worth about $1.29 million. The combined buying increased his stake by roughly 1%, signaling confidence at current valuation levels. Insider purchase report
• Neutral Sentiment: Sonic Automotive scheduled its third-quarter 2026 results for October 29 before the market open, followed by a management conference call. Investors will be looking for updates on dealership demand, used-vehicle trends, margins and guidance. Third-quarter earnings release schedule
• Neutral Sentiment: Barclays maintained its Hold rating, while broader sell-side opinion remains mixed. The company’s latest reported quarter showed revenue growth and an earnings beat, but earnings were below the prior-year period, leaving investors focused on whether profitability can improve. Barclays Hold rating
• Negative Sentiment: UBS reduced its price target to $74 from $107 but retained a Buy rating. The sharp target reduction indicates materially lower expectations for valuation or operating performance, despite UBS continuing to see upside potential. UBS price target reduction
• Negative Sentiment: JPMorgan lowered its target to $64 from $72 and assigned an Underweight rating, reinforcing concerns about Sonic Automotive’s near-term outlook. Recent target reductions from other firms, including Morgan Stanley and Barclays, add to the valuation pressure on SAH. JPMorgan price target reduction

About Sonic Automotive

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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