Sonic Automotive (NYSE:SAH) Shares Gap Down – What’s Next?

Posted by George Bondi on Aug 1st, 2026

Sonic Automotive, Inc. (NYSE:SAH – Get Free Report) shares gapped down before the market opened on Thursday . The stock had previously closed at $112.66, but opened at $105.16. Sonic Automotive shares last traded at $103.0740, with a volume of 19,549 shares trading hands.

Key Stories Impacting Sonic Automotive

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

Positive Sentiment: Needham raised its price target to $139 from $90 and upgraded SAH to “Buy,” implying substantial potential upside from recent trading levels. The upgrade provides a bullish catalyst following the earnings report. Benzinga
Positive Sentiment: Second-quarter revenue rose 8% year over year to approximately $3.9 billion, exceeding the $3.78 billion analyst estimate. Sonic also reported record quarterly gross profit of $616.2 million, up 2% year over year. Sonic Automotive Reports Second Quarter 2026 Financial Results
Positive Sentiment: Adjusted earnings of $1.82 per share topped the $1.75 consensus estimate by $0.07, indicating better-than-expected quarterly results despite pressure on margins. Sonic Automotive Q2 Earnings and Revenues Beat Estimates
Positive Sentiment: Sonic declared a quarterly dividend of $0.41 per share, payable October 15 to eligible shareholders. The annualized payout is $1.64 per share, representing an indicated yield of about 1.6%.
Neutral Sentiment: Management’s second-quarter earnings call and presentation provide additional details on operating performance and the company’s outlook, but the reported headline results remain mixed. Sonic Automotive Q2 2026 Earnings Call Transcript
Negative Sentiment: Profit fell from $2.19 per share in the year-earlier quarter to $1.82, while net margin was only 0.72%. Reports attributed the weaker profitability to higher dealership costs, which overshadowed the revenue growth and earnings beat. Sonic Automotive Shares Turn Negative as Profitability Undermined by Dealership Costs

Wall Street Analysts Forecast Growth

SAH has been the topic of a number of research reports. Barclays raised their price target on Sonic Automotive from $77.00 to $92.00 and gave the stock an “equal weight” rating in a research note on Wednesday, July 15th. Stephens set a $89.00 price target on shares of Sonic Automotive in a research report on Monday, July 13th. Zacks Research upgraded shares of Sonic Automotive from a “strong sell” rating to a “hold” rating in a research note on Tuesday, April 28th. Citigroup increased their price target on shares of Sonic Automotive from $82.00 to $95.00 and gave the stock a “buy” rating in a research report on Monday, May 11th. Finally, Seaport Research Partners cut shares of Sonic Automotive from a “buy” rating to a “neutral” rating and lifted their price target for the stock from $185.00 to $205.00 in a research note on Friday, July 17th. Five investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of $96.11.

Get Our Latest Analysis on SAH

Sonic Automotive Trading Down 8.9%

The stock has a 50-day moving average price of $88.55 and a two-hundred day moving average price of $73.95. The stock has a market capitalization of $2.89 billion, a PE ratio of 14.58, a PEG ratio of 1.54 and a beta of 0.89. The company has a debt-to-equity ratio of 1.93, a quick ratio of 0.29 and a current ratio of 1.03.

Sonic Automotive (NYSE:SAH – Get Free Report) last released its earnings results on Thursday, July 30th. The company reported $1.82 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.75 by $0.07. Sonic Automotive had a net margin of 1.37% and a return on equity of 20.68%. The company had revenue of $3.93 billion during the quarter, compared to analyst estimates of $3.78 billion. During the same period in the prior year, the firm posted $2.19 EPS. The firm’s quarterly revenue was up 7.6% compared to the same quarter last year. As a group, equities analysts forecast that Sonic Automotive, Inc. will post 6.93 earnings per share for the current year.

Sonic Automotive Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Tuesday, September 15th will be paid a $0.41 dividend. This represents a $1.64 dividend on an annualized basis and a yield of 1.8%. The ex-dividend date is Tuesday, September 15th. Sonic Automotive’s dividend payout ratio is presently 26.16%.

Insider Activity at Sonic Automotive

In other news, President Jeff Dyke sold 50,000 shares of the company’s stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $82.97, for a total value of $4,148,500.00. Following the completion of the transaction, the president owned 111,622 shares of the company’s stock, valued at $9,261,277.34. This represents a 30.94% decrease in their ownership of the stock. The transaction was disclosed in a legal filing 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. 43.68% of the stock is owned by insiders.

Institutional Trading of Sonic Automotive

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

Sonic Automotive Company Profile

(Get Free Report)

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.