Sonic Automotive (NYSE:SAH) Major Shareholder Purchases $1,658,698.56 in Stock

Key Points

• Major shareholder Paul Rusnak purchased 27,756 Sonic Automotive shares for approximately $1.66 million at an average price of $59.76, increasing his ownership by 0.54% to more than 5.1 million shares.
• Sonic Automotive exceeded quarterly earnings and revenue expectations, reporting EPS of $1.82 and revenue of $3.93 billion, while declaring a quarterly dividend of $0.41 per share, yielding about 2.7% annually.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $94.50; Morgan Stanley and JPMorgan recently lowered their targets and maintained “Underweight” ratings.

Sonic Automotive, Inc. (NYSE:SAH - Get Free Report) major shareholder Paul Rusnak acquired 27,756 shares of Sonic Automotive stock in a transaction that occurred on Monday, October 5th. The shares were purchased at an average price of $59.76 per share, with a total value of $1,658,698.56. Following the purchase, the insider owned 5,149,401 shares in the company, valued at $307,728,203.76. This represents a 0.54% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Large shareholders that own 10% or more of a company's stock are required to disclose their sales and purchases with the SEC.

Sonic Automotive Stock Performance

SAH stock traded down $1.61 during trading on Tuesday, hitting $61.02. 308,781 shares of the company traded hands, compared to its average volume of 366,006. Sonic Automotive, Inc. has a 1 year low of $54.11 and a 1 year high of $113.67. 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 company has a market cap of $1.93 billion, a PE ratio of 9.73, a P/E/G ratio of 1.01 and a beta of 0.92. The stock's 50-day simple moving average is $76.08 and its 200 day simple moving average is $78.21.

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

Sonic Automotive Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 15th. Investors of record on Tuesday, September 15th will be given a $0.41 dividend. The ex-dividend date 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 (DPR) is presently 26.16%.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in SAH. State of Wyoming acquired a new position in Sonic Automotive during the 1st quarter valued at about $79,000. Ameritas Advisory Services LLC bought a new position in shares of Sonic Automotive in the second quarter worth $88,000. Hennion & Walsh Asset Management Inc. acquired a new position in shares of Sonic Automotive during the second quarter valued at $208,000. Fifth Third Bancorp lifted its holdings in Sonic Automotive by 2,981.1% in the first quarter. Fifth Third Bancorp now owns 4,067 shares of the company's stock worth $279,000 after purchasing an additional 3,935 shares during the period. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al bought a new position in Sonic Automotive in the 2nd quarter valued at about $373,000. 46.92% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

A number of equities research analysts recently commented on the stock. UBS Group increased their price objective on shares of Sonic Automotive from $90.00 to $109.00 and gave the company a "buy" rating in a research note on Friday, July 10th. Stephens set a $89.00 price objective on Sonic Automotive in a research report on Monday, July 13th. Morgan Stanley cut their price target on 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 Sonic Automotive from $95.00 to $115.00 and gave the company a "buy" rating in a report on Monday, August 3rd. Finally, JPMorgan Chase & Co. cut their price target on shares of Sonic Automotive from $72.00 to $64.00 and set an "underweight" rating on the stock in a research note on Tuesday. Four research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, Sonic Automotive has a consensus rating of "Hold" and an average target price of $94.50.

More Sonic Automotive News

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

• Positive Sentiment: Major shareholder Paul P. Rusnak purchased 21,645 shares for approximately $1.29 million at an average price of $59.50. The purchase increased his direct stake by 0.42%, a potentially supportive signal of insider confidence. SEC insider transaction filing
• Positive Sentiment: Sonic Automotive reported approximately 8% second-quarter revenue growth, indicating continued sales expansion despite a challenging consumer and auto-market backdrop. Sonic Automotive stock reports 8 percent Q2 revenue growth
• Neutral Sentiment: Sell-side coverage remains mixed, with brokerages collectively rating the stock “Hold.” Analysts’ opinions on Sonic Automotive also remain divided, suggesting limited consensus on the company’s earnings outlook. Sonic Automotive stock rated Hold
• Negative Sentiment: JPMorgan lowered its price target from $72 to $64 and assigned an “Underweight” rating. Although the new target implies modest upside based on the referenced price, the reduction signals weaker expectations for valuation or operating performance. JPMorgan lowers Sonic Automotive price target
• Negative Sentiment: Morgan Stanley also cut its target, from $72 to $57, and maintained an “Underweight” rating. This target is below the referenced share price and reinforces the broader analyst concern weighing on SAH. Morgan Stanley cuts Sonic Automotive price target

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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