Sonic Automotive, Inc. Class A (SAH)

In the past six months, Sonic Automotive's stock experienced several notable events. On October 23, 2025, the company reported its third-quarter 2025 financial results, with adjusted diluted EPS of $1.41, missing the consensus estimate, which led to an 11.3% drop in the stock price on October 24, 2025. Prior to the earnings report, the market expected Sonic Automotive to deliver a year-over-year increase in earnings on higher revenues for the quarter ended September 2025. Analyst ratings have been mixed, with some downgrades and price target adjustments. Sonic Automotive participated in the Gabelli Funds 49th Annual Automotive Symposium in November 2025. The company also announced that its Powersports segment shattered sales records at the 85th Sturgis Motorcycle Rally in September 2025 and acquired four Jaguar Land Rover dealerships in California.

Demand for Sonic Automotive's products and services is subject to seasonality. Car sales can be influenced by factors such as new number plate releases, holidays, school breaks, weather conditions, economic trends, and tax cycles. New model releases can create sales spikes, particularly in the fall. The company's management has acknowledged seasonality, noting that the normal seasonality for new vehicle volume might not hold due to the lack of federal tax credits for EVs. Used vehicle sales and parts, service, and collision repair services tend to be less sensitive to economic cycles and seasonal influences compared to new vehicle sales.

Sonic Automotive, Inc. is a prominent automotive retailer in the United States, operating through Franchised Dealerships, EchoPark Automotive, and Powersports. The company sells new and used cars and light trucks, replacement parts, and offers vehicle maintenance, warranty repairs, paint and collision repair services, and financing and insurance arrangement. Sonic Automotive is in the Consumer Discretionary sector and the Retail-Auto Dealers and Gas Stations industry. The Franchised Dealerships segment offers services for new and used vehicles, representing over 25 brands, including luxury and mass-market manufacturers. The EchoPark segment specializes in used cars and light trucks, focusing on 1-4 year-old pre-owned vehicles. The Powersports segment deals with new and used powersports vehicles and related services.

Sonic Automotive, Inc. operates in 24 states with more than 100 dealerships representing over 25 brands of automobiles. As of October 2025, the company has 108 franchised stores, primarily in metropolitan areas, and 18 EchoPark used-vehicle stores. Its franchised dealerships include 111 locations and 16 collision centers nationwide. The Powersports segment has 14 locations across North Carolina, South Dakota, and Texas. The company's headquarters are in Charlotte, North Carolina.

Sonic Automotive is recognized as a Fortune 500 company and one of the largest automotive retailers in the U.S.. Its diverse brand portfolio contributes to its strength in the high-end market segment. The expansion of its EchoPark Automotive brand contributes positively to its market perception. The recent third-quarter 2025 earnings miss could potentially impact short-term investor sentiment. The company's diversified revenue streams provide stability, and its commitment to innovation positions it to leverage advancements in the automotive industry and enhance customer experience.

Institutional investors own a significant portion of Sonic Automotive, Inc. stock, holding 46.92% of the company's shares. Major institutional shareholders include Westwood Holdings Group Inc. and State of Wyoming. Other institutional investors have recently modified their holdings, with many increasing their stakes in the second quarter of 2025. New stakes were also acquired in the first and second quarters of 2025. The Smith family holds over 30% of the total shares outstanding and possesses over 80% of the voting power due to a dual-class stock structure.