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

Sonic Automotive (NYSE:SAH)‘s stock had its “buy” rating reiterated by equities researchers at Needham & Company LLC in a report released on Thursday,Benzinga reports. They currently have a $90.00 target price on the stock. Needham & Company LLC’s price target indicates a potential upside of 42.86% from the company’s previous close.

Several other research firms also recently weighed in on SAH. Wall Street Zen downgraded Sonic Automotive from a “buy” rating to a “hold” rating in a research report on Sunday, January 11th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Sonic Automotive in a research note on Monday, December 29th. Barclays reduced their target price 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 target price on shares of Sonic Automotive from $70.00 to $67.00 and set an “underweight” rating on the stock in a research note on Friday, January 16th. Finally, Morgan Stanley set a $68.00 price target on shares of Sonic Automotive in a research report on Monday, December 8th. Four analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, Sonic Automotive has an average rating of “Hold” and a consensus price target of $77.75.

Sonic Automotive Price Performance

NYSE SAH opened at $63.00 on Thursday. Sonic Automotive has a 52 week low of $52.00 and a 52 week high of $89.62. The firm has a market capitalization of $2.15 billion, a P/E ratio of 17.03 and a beta of 0.93. The company has a quick ratio of 0.27, a current ratio of 1.02 and a debt-to-equity ratio of 1.68. The company has a 50-day moving average price of $62.64 and a 200-day moving average price of $68.92.

Sonic Automotive (NYSE:SAH) last issued its quarterly earnings data on Wednesday, February 18th. The company reported $1.52 earnings per share for the quarter, missing the consensus estimate of $1.53 by ($0.01). Sonic Automotive had a return on equity of 21.65% and a net margin of 0.86%.The business had revenue of $3.87 billion during the quarter, compared to the consensus estimate of $3.94 billion. During the same quarter last year, the company earned $1.51 EPS. Sonic Automotive’s revenue for the quarter was down .6% on a year-over-year basis. Equities research analysts anticipate that Sonic Automotive will post 6.14 earnings per share for the current year.

Insiders Place Their Bets

In related news, major shareholder Paul P. Rusnak purchased 48,540 shares of Sonic Automotive stock in a transaction on Friday, February 13th. The shares were bought at an average cost of $59.92 per share, for a total transaction of $2,908,516.80. Following the acquisition, the insider owned 5,088,519 shares in the company, valued at approximately $304,904,058.48. The trade was a 0.96% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Insiders have acquired 100,000 shares of company stock worth $5,994,472 over the last three months. Company insiders own 42.65% of the company’s stock.

Institutional Investors Weigh In On Sonic Automotive

Large investors have recently made changes to their positions in the company. Nisa Investment Advisors LLC grew its holdings in Sonic Automotive by 3.8% during the 2nd quarter. Nisa Investment Advisors LLC now owns 4,509 shares of the company’s stock valued at $362,000 after buying an additional 165 shares in the last quarter. Mitsubishi UFJ Trust & Banking Corp boosted its position in shares of Sonic Automotive by 1.2% during the 4th quarter. Mitsubishi UFJ Trust & Banking Corp now owns 15,603 shares of the company’s stock valued at $965,000 after acquiring an additional 190 shares during the last quarter. Wealth Enhancement Advisory Services LLC grew its holdings in shares of Sonic Automotive by 1.9% in the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 14,426 shares of the company’s stock valued at $924,000 after purchasing an additional 273 shares in the last quarter. Northwestern Mutual Wealth Management Co. increased its position in Sonic Automotive by 8.6% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 3,577 shares of the company’s stock worth $221,000 after purchasing an additional 284 shares during the last quarter. Finally, CWM LLC raised its stake in Sonic Automotive by 11.3% during the fourth quarter. CWM LLC now owns 2,858 shares of the company’s stock valued at $177,000 after purchasing an additional 291 shares in the last quarter. 46.92% of the stock is owned by institutional investors.

Key Stories Impacting Sonic Automotive

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

• Positive Sentiment: Large insider accumulation — Major shareholder Paul P. Rusnak bought tens of thousands of shares across several trades in February (bringing his stake to ~5.1M shares). Large, repeated insider purchases at ~\$59.95 signal confidence from a controlling owner and often supports near-term 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 ~2.4% yield. The dividend and ~41% payout ratio can attract income-focused investors and provide a floor to seller interest.
• Positive Sentiment: Record gross profit — Management highlighted record gross profit for Q4, suggesting improved operational performance (helpful for margin recovery narratives). Investing.com: Record Gross Profit
• Neutral Sentiment: Earnings materials posted — Slides, call transcript and presentation are available for deeper inspection of F&I, used-vehicle and inventory trends; analysts will parse these for guidance changes. Earnings Call Transcript
• Neutral Sentiment: Institutional positioning mixed — Recent filings show some hedge funds and banks trimming or adding positions; institutional ownership remains material (~47%), so flow changes can amplify moves but aren’t a clear directional signal.
• Negative Sentiment: Slight Q4 miss on top and bottom line — Q4 EPS of $1.52 missed consensus by $0.01 and revenue of $3.87B trailed estimates (~$3.94B); revenue was down ~0.6% YoY and net margin remains slim (~0.86%), giving bears fodder about demand and margin pressure. Zacks: Q4 Miss

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.