Needham & Company LLC Increases Sonic Automotive (NYSE:SAH) Price Target to $139.00

Sonic Automotive (NYSE:SAH) had its target price upped by analysts at Needham & Company LLC from $90.00 to $139.00 in a research report issued on Friday,Benzinga reports. The brokerage presently has a “buy” rating on the stock. Needham & Company LLC’s target price indicates a potential upside of 37.77% from the company’s previous close.

Several other research firms have also recently issued reports on SAH. JPMorgan Chase & Co. reduced their price objective on shares of Sonic Automotive from $77.00 to $76.00 and set an “underweight” rating on the stock in a research report on Monday, July 13th. Weiss Ratings upgraded Sonic Automotive from a “hold (c)” rating to a “hold (c+)” rating in a research report on Thursday, July 23rd. Citigroup lifted their target price on Sonic Automotive from $82.00 to $95.00 and gave the stock a “buy” rating in a report on Monday, May 11th. Stephens set a $89.00 price target on Sonic Automotive in a report on Monday, July 13th. Finally, Barclays upped their price objective on Sonic Automotive from $77.00 to $92.00 and gave the stock an “equal weight” rating in a report on Wednesday, July 15th. Five analysts have rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $96.11.

Sonic Automotive Price Performance

SAH stock opened at $100.89 on Friday. The firm has a 50-day moving average of $88.28 and a 200 day moving average of $73.83. The company has a debt-to-equity ratio of 1.93, a current ratio of 1.03 and a quick ratio of 0.29. The company has a market cap of $3.19 billion, a P/E ratio of 32.13, a PEG ratio of 1.72 and a beta of 0.89. Sonic Automotive has a 1 year low of $54.11 and a 1 year high of $113.67.

Sonic Automotive (NYSE:SAH) last released its earnings results on Thursday, July 30th. The company reported $1.82 earnings per share for the quarter, topping analysts’ consensus estimates of $1.75 by $0.07. The firm had revenue of $3.93 billion for the quarter, compared to the consensus estimate of $3.78 billion. Sonic Automotive had a net margin of 0.72% and a return on equity of 22.45%. The company’s revenue was up 7.6% compared to the same quarter last year. During the same period in the prior year, the firm earned $2.19 EPS. On average, sell-side analysts forecast that Sonic Automotive will post 6.93 EPS for the current year.

Insider Buying and Selling at Sonic Automotive

In other Sonic Automotive news, President Jeff Dyke sold 35,114 shares of the stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of $85.22, for a total value of $2,992,415.08. Following the sale, the president owned 543,668 shares in the company, valued at $46,331,386.96. This trade represents a 6.07% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 100,000 shares of company stock valued at $8,408,160 in the last quarter. Corporate insiders own 43.68% of the company’s stock.

Hedge Funds Weigh In On Sonic Automotive

A number of institutional investors have recently modified their holdings of the stock. A&I Financial Services LLC raised its position in Sonic Automotive by 0.9% in the 2nd quarter. A&I Financial Services LLC now owns 11,755 shares of the company’s stock valued at $997,000 after purchasing an additional 109 shares in the last quarter. Mitsubishi UFJ Trust & Banking Corp grew its stake in Sonic Automotive by 1.2% during the 4th quarter. Mitsubishi UFJ Trust & Banking Corp now owns 15,603 shares of the company’s stock worth $965,000 after buying an additional 190 shares during the last quarter. Wealth Enhancement Advisory Services LLC boosted its stake in Sonic Automotive by 1.9% during the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 14,426 shares of the company’s stock worth $924,000 after purchasing an additional 273 shares during the period. Northwestern Mutual Wealth Management Co. increased its position in Sonic Automotive by 8.6% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 3,577 shares of the company’s stock valued at $221,000 after acquiring an additional 284 shares during the period. Finally, CWM LLC grew its position in Sonic Automotive by 11.3% in the 4th quarter. CWM LLC now owns 2,858 shares of the company’s stock valued at $177,000 after buying an additional 291 shares during the last quarter. 46.92% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Sonic Automotive

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

• Positive Sentiment: Second-quarter revenue increased 7.6% year over year to approximately $3.93 billion, exceeding the $3.78 billion analyst estimate. EPS of $1.82 also topped expectations of $1.75. Sonic Automotive Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: Sonic reported record quarterly total gross profit of $616.2 million, up 2% from a year earlier, indicating continued scale and demand despite operating pressures. Sonic Automotive Reports Second Quarter 2026 Financial Results
• Positive Sentiment: The company declared a quarterly dividend of $0.41 per share, payable October 15 to shareholders of record September 15. The annualized payout implies a yield of roughly 1.6%, providing modest shareholder-return support.
• Neutral Sentiment: Management’s second-quarter earnings call transcript provides additional commentary for investors assessing sales trends, dealership expenses and profitability following the results. Sonic Automotive Q2 2026 Earnings Call Transcript
• Negative Sentiment: Despite the earnings beat, EPS fell from $2.19 in the year-ago quarter to $1.82. Net margin was only 0.72%, and reports indicated dealership costs undermined profitability. This appears to be the main reason shares encountered selling pressure after the release. Sonic Automotive Shares Turn Negative as Profitability Undermined by Dealership Costs
• Negative Sentiment: At approximately $100.89, SAH trades well above its 50-day and 200-day moving averages and near its 12-month high, while its price-to-earnings ratio is about 32. Investors may therefore demand sustained earnings growth, making margin weakness more significant.

Sonic Automotive Company 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.