Sonic Automotive, Inc. (SAH) Stock Analysis
Range Bound setup
Consumer Cyclical · Auto & Truck Dealerships
Sell if holding. Engine safety override at $74.06: Quality below floor (1.6 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.2/10. Specifically: High short interest: 27%; Elevated put/call ratio: 7.17; Below-average business quality.
Sonic Automotive is one of the largest U.S. automotive retailers, operating 111 franchised dealerships, 18 EchoPark pre-owned stores, and 14 Powersports stores across 18 states as of December 31, 2025. Revenue is primarily from vehicle sales, fixed operations, and F&I products;... Read more
Sell if holding. Engine safety override at $74.06: Quality below floor (1.6 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.2/10. Specifically: High short interest: 27%; Elevated put/call ratio: 7.17; Below-average business quality. Chart setup: RSI 53 mid-range, Bollinger mid-band. Score 4.2/10, moderate confidence.
Passes 6/8 gates (clean insider activity, no SEC red flags, news events none recent, earnings proximity 72d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: aggressive.
Recent Developments — Sonic Automotive, Inc.
Latest news
- Citigroup Maintains Buy on Sonic Automotive, Raises Price Target to $95 — benzinga May 11, 2026 positive
- JP Morgan Maintains Underweight on Sonic Automotive, Raises Price Target to $77 — benzinga May 7, 2026 negative
- Barclays Maintains Equal-Weight on Sonic Automotive, Raises Price Target to $77 — benzinga May 6, 2026 positive
- Transcript: Sonic Automotive Q1 2026 Earnings Conference Call — benzinga Apr 30, 2026 neutral
- Earnings Scheduled For April 30, 2026 — benzinga Apr 30, 2026 neutral
Generated 2026-05-20T21:06:21Z.
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- MEDIUMGeographicTexas26%10-K Item 1: 'Texas| | 27 | | | 6 | | | 7| | 26.2 | %'
- MEDIUMGeographicCalifornia25%10-K Item 1: 'California| | 23 | | | 1 | | | — | | | 24.6 | %'
- MEDIUMSuppliersingle third-party provider for extended warranties10-K Item 1: 'We work with a single third-party provider for the majority of our extended warranties, service contracts and other aftermarket products.'
Material Events(8-K, last 90d)
- 2026-05-08Item 5.02LOWCompensation Committee approved performance-based RSU grants to CEO David Bruton Smith (69,872 units), President Jeff Dyke (38,175 units), and CFO Heath Byrd (26,183 units) under 2026 Equity Incentive Plan. Vesting contingent on 2026 adjusted EPS goals.SEC filing →
- 2026-05-01Item 5.02LOWStockholders approved the Sonic Automotive 2026 Equity Incentive Plan at April 29, 2026 annual meeting, replacing the 2012 Stock Incentive Plan. 2,318,148 shares reserved for issuance.SEC filing →
- 2026-02-13Item 5.02LOWCompensation Committee established 2026 performance-based cash bonus parameters for CEO David Bruton Smith, President Jeff Dyke, and CFO Heath Byrd based on adjusted EPS and customer satisfaction goals.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer
Rating Breakdown
4 floor-breakers
Growth below the gate floor. Component breakdown shows what dragged the score down.static
Quality below the gate floor. Component breakdown shows what dragged the score down.static
Volatile — 5.0% daily ATR makes tight stops impractical. Position-size conservatively.static
Momentum below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $74.06: Quality below floor (1.6 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.2/10. Specifically: High short interest: 27%; Elevated put/call ratio: 7.17; Below-average business quality. Chart setup: RSI 53 mid-range, Bollinger mid-band. Prior stop was $68.88. Score 4.2/10, moderate confidence.
Take-profit target: $81.64 (+10.2% upside). Prior stop was $68.88. Stop-loss: $68.88.
Target reached (-3.8% upside); Quality below floor (1.6 < 4.0).
Sonic Automotive, Inc. trades at a P/E of 23.4 (forward 10.0). TrendMatrix value score: 7.5/10. Verdict: Sell.
16 analysts cover SAH with a consensus score of 3.8/5. Average price target: $82.
What does Sonic Automotive, Inc. do?Sonic Automotive is one of the largest U.S. automotive retailers, operating 111 franchised dealerships, 18 EchoPark...
Sonic Automotive is one of the largest U.S. automotive retailers, operating 111 franchised dealerships, 18 EchoPark pre-owned stores, and 14 Powersports stores across 18 states as of December 31, 2025. Revenue is primarily from vehicle sales, fixed operations, and F&I products; the Franchised Dealerships Segment generated 85% of total 2025 revenue.