Sonic Automotive, Inc. Class A (SAH)

In the past six months, Sonic Automotive's stock has been impacted by several events. The company reported its Q3 2025 financial results on October 23, 2025, achieving all-time record quarterly total revenues and total gross profit, but reported net income and adjusted EPS missed expectations, leading to a negative market reaction. The EchoPark segment's revenues were down, while the Powersports segment achieved record quarterly revenues and segment income. Prior to this, Sonic Automotive reported strong Q2 2025 financial results on July 24, 2025, with record total revenues and a significant increase in adjusted net income, despite a net loss primarily due to a non-cash franchise asset impairment charge. Q1 2025 also saw record total revenues and an increase in adjusted EPS. Dividend announcements included a quarterly cash dividend of $0.35 per share payable July 15, 2025, and a $0.38 quarterly dividend payable January 15, 2026. Analyst ratings have seen some adjustments, with Barclays initiating coverage with an "Equal-Weight" recommendation in November 2025, Citigroup upgrading to "Strong Buy" in November 2025, and Needham maintaining a "Strong Buy" recommendation in October 2025. JP Morgan maintained a "Sell" rating with adjusted price targets in October and November 2025. A fraud investigation by the Schall Law Firm on behalf of investors was announced in early November 2025. The company also completed the acquisition of Jaguar Land Rover Santa Monica, expected to add approximately $125 million in annualized revenue.

The automotive industry experiences distinct seasonal trends in demand. Peak demand for auto sales typically occurs in the spring, from March through the end of May, and again in the fall, from September through November. Conversely, the slowest months for auto sales are traditionally January, February, and into early March, as well as August. Sonic Automotive's diversified revenue streams, including parts, service, and collision repair, tend to be less sensitive to these economic cycles and seasonal influences than new vehicle sales.

Sonic Automotive, Inc. (SAH) is a prominent automotive retailer in the United States, operating within the Consumer Discretionary sector. The company's business is diversified across three primary segments: Franchised Dealerships, EchoPark Automotive, and Powersports. The Franchised Dealerships segment is involved in the sale of new and used cars and light trucks, replacement parts, vehicle maintenance, manufacturer warranty repairs, and paint and collision repair services, also arranging third-party financing, extended warranties, service contracts, insurance, and other aftermarket products. The EchoPark segment focuses on selling used cars and light trucks, offering a unique car buying experience with a fixed-price, haggle-free sales model. The Powersports segment engages in the sale of new and used powersports vehicles such as motorcycles, personal watercraft, and all-terrain vehicles, along with related services and financing.

Sonic Automotive operates across 18 to 24 states in the United States. As of December 31, 2021, the company managed 140 new vehicle franchises representing 28 distinct brands, 17 collision repair centers across 17 states, and 46 EchoPark stores situated in 16 states, including 11 Northwest Motorsport pre-owned vehicle stores. More recent information indicates 108 franchised stores and 16 collision centers in major metropolitan areas, primarily in California, Texas, and the Southeast, along with 25 EchoPark used-vehicle stores and 13 powersports locations. The company's headquarters are located in Charlotte, North Carolina.

Sonic Automotive aims to provide an exceptional automotive retail experience, emphasizing transparency, convenience, and a comprehensive selection of vehicles and services. The company promotes a customer-centric approach, offering a pressure-free environment and expert guidance to customers at both its Sonic and EchoPark dealerships. While the company's financial performance in 2025 included record revenues in Q1, Q2, and Q3, and growth in various segments, there were also instances of adjusted EPS missing forecasts in Q3 2025 and a net loss in Q2 2025 due to a non-cash impairment charge. Additionally, a fraud investigation was announced in November 2025. Specific events that have broadly impacted Sonic Automotive's brand reputation, either positively or negatively, beyond these financial and legal disclosures, were not readily available in the provided search results for the past year.

Sonic Automotive, Inc. has a diverse ownership structure. Institutional investors hold a significant portion, with BlackRock, Inc., Vanguard Group Inc, and Dimensional Fund Advisors Lp being among the largest institutional shareholders. As of late 2025, institutional ownership was reported to be near 70.93% of the float. Insider ownership is notably high, at nearly 32%, indicating that the company's management and founding family have substantial stakes. The Smith family collectively hold a significant percentage of the company's shares, with Paul P. Rusnak being the largest individual shareholder. Retail investors also constitute a substantial portion of the ownership, estimated at 58.30% by one source.