Sonic Automotive (NYSE:SAH) Trading 6.7% Higher – What’s Next?

Sonic Automotive, Inc. (NYSE:SAH) shares rose 6.7% during trading on Wednesday . The stock traded as high as $112.32 and last traded at $111.73. 22,457 shares changed hands during trading, a decline of 92% from the average daily volume of 274,341 shares. The stock had previously closed at $104.69.

Key Stories Impacting Sonic Automotive

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

• Positive Sentiment: Second-quarter revenue rose 7.6% to approximately $3.9 billion, exceeding the $3.78 billion analyst estimate. Adjusted earnings of $1.82 per share also beat expectations of $1.75. Sonic Automotive Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: Sonic Automotive reported record second-quarter total gross profit of $616.2 million, up 2% year over year, indicating continued scale and demand despite a challenging cost environment. 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 payment represents an annualized dividend of $1.64 and an indicated yield of about 1.6%.
• Negative Sentiment: Quarterly EPS declined from $2.19 a year earlier to $1.82, while net margin was only 0.72%. Reports attributed the pressure on profitability to higher dealership costs, tempering the impact of the revenue and earnings beats. Sonic Automotive Shares Turn Negative as Profitability Undermined by Dealership Costs

Analyst Upgrades and Downgrades

Several equities research analysts have recently issued reports on SAH shares. Weiss Ratings raised Sonic Automotive from a “hold (c)” rating to a “hold (c+)” rating in a report on Thursday, July 23rd. Stephens set a $89.00 price target on Sonic Automotive in a research note on Monday, July 13th. Seaport Research Partners downgraded Sonic Automotive from a “buy” rating to a “neutral” rating and lifted their price objective for the stock from $185.00 to $205.00 in a research note on Friday, July 17th. JPMorgan Chase & Co. decreased their price objective on Sonic Automotive from $77.00 to $76.00 and set an “underweight” rating on the stock in a report on Monday, July 13th. Finally, Bank of America increased their target price on Sonic Automotive from $91.00 to $108.00 and gave the company a “buy” rating in a research report on Thursday, July 9th. Five equities research 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, the stock has an average rating of “Hold” and a consensus target price of $90.67.

Sonic Automotive Price Performance

The company has a current ratio of 1.03, a quick ratio of 0.29 and a debt-to-equity ratio of 1.93. The company has a market capitalization of $3.19 billion, a PE ratio of 32.13, a price-to-earnings-growth ratio of 1.72 and a beta of 0.89. The stock’s 50-day moving average is $88.28 and its two-hundred day moving average is $73.83.

Sonic Automotive (NYSE:SAH) last posted its quarterly earnings data on Thursday, July 30th. The company reported $1.82 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.75 by $0.07. Sonic Automotive had a return on equity of 22.45% and a net margin of 0.72%.The company had revenue of $3.93 billion during the quarter, compared to analysts’ expectations of $3.78 billion. During the same quarter in the previous year, the business earned $2.19 EPS. Sonic Automotive’s revenue was up 7.6% compared to the same quarter last year. On average, equities analysts predict that Sonic Automotive, Inc. will post 6.93 EPS for the current year.

Sonic Automotive Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Tuesday, September 15th will be issued a $0.41 dividend. The ex-dividend date is Tuesday, September 15th. This represents a $1.64 dividend on an annualized basis and a dividend yield of 1.6%. Sonic Automotive’s dividend payout ratio is presently 52.23%.

Insider Buying and Selling

In related news, President Jeff Dyke sold 50,000 shares of Sonic Automotive stock in a transaction dated Monday, June 8th. The shares were sold at an average price of $82.97, for a total transaction of $4,148,500.00. Following the completion of the sale, the president owned 111,622 shares in the company, valued at $9,261,277.34. This trade represents a 30.94% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 100,000 shares of company stock valued at $8,408,160. Company insiders own 43.68% of the company’s stock.

Hedge Funds Weigh In On Sonic Automotive

Hedge funds have recently added to or reduced their stakes in the stock. Royal Bank of Canada boosted its holdings in shares of Sonic Automotive by 37.1% in the first quarter. Royal Bank of Canada now owns 13,946 shares of the company’s stock valued at $795,000 after purchasing an additional 3,777 shares during the period. AQR Capital Management LLC increased its holdings in Sonic Automotive by 13.6% during the 1st quarter. AQR Capital Management LLC now owns 23,310 shares of the company’s stock worth $1,328,000 after purchasing an additional 2,793 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in Sonic Automotive by 5.8% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 8,853 shares of the company’s stock valued at $504,000 after purchasing an additional 483 shares in the last quarter. Goldman Sachs Group Inc. raised its position in Sonic Automotive by 124.9% during the 1st quarter. Goldman Sachs Group Inc. now owns 355,328 shares of the company’s stock valued at $20,239,000 after purchasing an additional 197,336 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in shares of Sonic Automotive by 15.8% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 38,698 shares of the company’s stock worth $2,204,000 after buying an additional 5,286 shares during the period. 46.92% of the stock is currently owned by institutional investors.

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.