Sonic Automotive (NYSE:SAH) Given “Buy” Rating at Needham & Company LLC

Needham & Company LLC reissued their buy rating on shares of Sonic Automotive (NYSE:SAH) in a research note issued to investors on Thursday morning,Benzinga reports. They currently have a $90.00 price objective on the stock.

A number of other brokerages also recently issued reports on SAH. Wall Street Zen downgraded shares of Sonic Automotive from a “buy” rating to a “hold” rating in a report on Sunday, January 11th. Zacks Research upgraded shares of Sonic Automotive from a “strong sell” rating to a “hold” rating in a research note on Tuesday, January 13th. Barclays cut their price target on shares of Sonic Automotive from $71.00 to $69.00 and set an “equal weight” rating for the company in a report on Wednesday, January 21st. JPMorgan Chase & Co. decreased their price target on shares of Sonic Automotive from $70.00 to $67.00 and set an “underweight” rating on the stock in a report on Friday, January 16th. Finally, Citigroup raised Sonic Automotive from a “neutral” rating to a “buy” rating and set a $82.00 price objective for the company in a research note on Thursday, November 6th. Four analysts have rated the stock with a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $77.75.

Sonic Automotive Price Performance

Sonic Automotive stock opened at $64.56 on Thursday. The firm has a market capitalization of $2.21 billion, a P/E ratio of 19.04 and a beta of 0.93. Sonic Automotive has a one year low of $52.00 and a one year high of $89.62. The company has a debt-to-equity ratio of 1.68, a current ratio of 1.02 and a quick ratio of 0.27. The business has a fifty day moving average price of $62.58 and a 200-day moving average price of $68.89.

Sonic Automotive (NYSE:SAH) last issued its quarterly earnings data on Wednesday, February 18th. The company reported $1.52 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.53 by ($0.01). Sonic Automotive had a return on equity of 21.56% and a net margin of 0.78%.The company had revenue of $3.87 billion for the quarter, compared to analysts’ expectations of $3.94 billion. During the same period last year, the company posted $1.51 EPS. The business’s revenue for the quarter was down .6% on a year-over-year basis. As a group, equities research analysts forecast that Sonic Automotive will post 6.14 EPS for the current year.

Sonic Automotive Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, April 15th. Investors of record on Friday, March 13th will be given a $0.38 dividend. The ex-dividend date is Friday, March 13th. This represents a $1.52 annualized dividend and a yield of 2.4%. Sonic Automotive’s payout ratio is 41.08%.

Insider Buying and Selling

In other news, major shareholder Paul P. Rusnak purchased 48,540 shares of the stock in a transaction on Friday, February 13th. The shares were acquired at an average price of $59.92 per share, for a total transaction of $2,908,516.80. Following the completion of the transaction, the insider directly owned 5,088,519 shares of the company’s stock, valued at approximately $304,904,058.48. This trade represents a 0.96% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this link. Insiders acquired a total of 100,000 shares of company stock valued at $5,994,472 over the last quarter. 42.65% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Sonic Automotive

A number of large investors have recently modified their holdings of the company. Northwestern Mutual Wealth Management Co. lifted its position in Sonic Automotive by 992.5% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 437 shares of the company’s stock worth $35,000 after buying an additional 397 shares during the last quarter. Camelot Portfolios LLC purchased a new position in shares of Sonic Automotive during the fourth quarter worth approximately $41,000. Torren Management LLC bought a new stake in shares of Sonic Automotive in the 4th quarter worth approximately $50,000. Aster Capital Management DIFC Ltd purchased a new stake in shares of Sonic Automotive in the 3rd quarter valued at $63,000. Finally, National Bank of Canada FI bought a new position in shares of Sonic Automotive during the 3rd quarter valued at $78,000. 46.92% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Sonic Automotive

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

• Positive Sentiment: Large insider accumulation — Paul P. Rusnak bought multiple blocks of shares in February (totaling tens of thousands across filings), increasing his stake to ~5.1M shares; repeated buys from a major holder tend to support sentiment. SEC Filing: Insider Purchases
• Positive Sentiment: Dividend declared — Sonic announced a quarterly dividend of $0.38/share (ex-dividend March 13; payable April 15), implying a ~2.4% yield and a ~41% payout ratio that can attract income-oriented buyers.
• Positive Sentiment: Record gross profit flagged on the call — Management highlighted record gross profit in Q4, supporting a margin-recovery narrative despite top-line pressure. Investing.com: Record Gross Profit
• Neutral Sentiment: Earnings materials available — Slides and the full earnings call transcript are posted for deeper analysis of F&I, used-vehicle trends and inventory; analysts will parse these for guidance and margin drivers. Earnings Call Transcript
• Neutral Sentiment: Analyst mix — Needham reaffirmed a Buy and a $90 target (large upside vs. current levels), showing bullish conviction from some desks. Benzinga: Needham Reaffirmation
• Negative Sentiment: Q4 slight miss — Sonic reported $1.52 EPS (missed consensus by $0.01) and revenues of $3.87B (below estimates ~ $3.94B), with revenue down ~0.6% YoY and low net margins (~0.9%); this gives short-term bearish talking points on demand. Zacks: Q4 Miss
• Negative Sentiment: Price-target trim by Stephens — Stephens cut its target to $67 and set an Equal Weight rating, which is a near-term headwind for sentiment versus higher targets. The Fly: Stephens Cut

About Sonic Automotive

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.