Sonic Automotive (SAH)
Market Price (11/3/2026): $63.62 | Market Cap: $2.0 BilSector: Consumer Discretionary | Industry: Automotive Retail
Sonic Automotive (SAH)
Market Price (11/3/2026): $63.62Market Cap: $2.0 BilSector: Consumer DiscretionaryIndustry: Automotive Retail
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 13%, Dividend Yield is 2.5%, ERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is 7.4% Valuation becoming less expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is -25% Low stock price volatilityVol 12M is 43% Megatrend and thematic driversMegatrends include E-commerce & Digital Retail, and Experience Economy & Premiumization. Themes include Online Marketplaces, Direct-to-Consumer Brands, Show more. | Weak multi-year price returns2Y Excs Rtn is -18%, 3Y Excs Rtn is -44% | Debt is significantNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is 234% Expensive valuation multiplesP/CFOPrice/(Cash Flow from Operations). CFO is cash before capital expenditures. is 38x Not cash flow generativeFCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is -1.3% Key risksSAH key risks include threats to its traditional dealership model from [1] the rise of direct-to-consumer sales and [2] the potential for reduced high-margin service revenue due to the market's shift toward lower-maintenance electric vehicles. |
| Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 13%, Dividend Yield is 2.5%, ERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is 7.4% |
| Valuation becoming less expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is -25% |
| Low stock price volatilityVol 12M is 43% |
| Megatrend and thematic driversMegatrends include E-commerce & Digital Retail, and Experience Economy & Premiumization. Themes include Online Marketplaces, Direct-to-Consumer Brands, Show more. |
| Weak multi-year price returns2Y Excs Rtn is -18%, 3Y Excs Rtn is -44% |
| Debt is significantNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is 234% |
| Expensive valuation multiplesP/CFOPrice/(Cash Flow from Operations). CFO is cash before capital expenditures. is 38x |
| Not cash flow generativeFCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is -1.3% |
| Key risksSAH key risks include threats to its traditional dealership model from [1] the rise of direct-to-consumer sales and [2] the potential for reduced high-margin service revenue due to the market's shift toward lower-maintenance electric vehicles. |
Qualitative Assessment
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Sonic Automotive (SAH) stock has lost about 30% since 7/31/2026 because of the following key factors:
1. Significant Miss on Fiscal Q3 2026 Earnings and Revenue Expectations.
Sonic Automotive reported diluted earnings per share (EPS) of $1.28 for fiscal Q3 2026, which ended September 30, 2026, representing a 4% year-over-year decrease and notably missing analyst consensus estimates ranging from $1.66 to $1.70 per share. While total revenues reached an all-time quarterly record of $4.0 billion, a 0.4% increase year-over-year, this still fell slightly short of analyst projections of $4.03 billion.
2. Weak Performance in Key Segments and Pressure on Profitability.
The company experienced a substantial decline in segment income for its Franchised Dealerships, which fell 22% to $47.6 million in fiscal Q3 2026. This was driven by a 7% decrease in same-store new vehicle unit sales volume. Although the EchoPark segment's retail used vehicle unit sales volume increased by 22% and revenues grew 14% to $596.0 million, its reported segment income dropped 23% to $2.0 million, and combined gross profit per unit declined 12% to $2,972, indicating significant margin pressure.
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Sonic Automotive (SAH) stock has lost about 30% since 7/31/2026 because of the following key factors:
1. Significant Miss on Fiscal Q3 2026 Earnings and Revenue Expectations.
Sonic Automotive reported diluted earnings per share (EPS) of $1.28 for fiscal Q3 2026, which ended September 30, 2026, representing a 4% year-over-year decrease and notably missing analyst consensus estimates ranging from $1.66 to $1.70 per share. While total revenues reached an all-time quarterly record of $4.0 billion, a 0.4% increase year-over-year, this still fell slightly short of analyst projections of $4.03 billion.
2. Weak Performance in Key Segments and Pressure on Profitability.
The company experienced a substantial decline in segment income for its Franchised Dealerships, which fell 22% to $47.6 million in fiscal Q3 2026. This was driven by a 7% decrease in same-store new vehicle unit sales volume. Although the EchoPark segment's retail used vehicle unit sales volume increased by 22% and revenues grew 14% to $596.0 million, its reported segment income dropped 23% to $2.0 million, and combined gross profit per unit declined 12% to $2,972, indicating significant margin pressure.
3. Increased Operating Expenses.
Selling, General, and Administrative (SG&A) expenses were a considerable factor, with total reported SG&A as a percentage of gross profit reaching 75.6% in fiscal Q3 2026. The company also adjusted its full-year 2026 outlook for adjusted SG&A expenses, projecting them to be 73% to 74% of gross profit, an increase from its previous "low 70s" expectation, partly due to marketing investments in the EchoPark segment.
4. Macroeconomic Headwinds and Analyst Downgrades.
The broader automotive market faced challenges from persistently high interest rates during fiscal Q3 2026, with average rates reaching 11.32% for used vehicles and 8.07% for new vehicles, impacting consumer affordability and leading to a decline in finance deals. Following the disappointing earnings report, Citigroup lowered its price target for Sonic Automotive from $115.00 to $98.00 on November 2, 2026. This followed an earlier target reduction by Barclays from $87.00 to $75.00 on October 6, 2026.
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Stock Movement Drivers
Fundamental Drivers
The -30.2% change in SAH stock from 7/31/2026 to 11/2/2026 was primarily driven by a -28.2% change in the company's P/E Multiple.| (LTM values as of) | 7312026 | 11022026 | Change |
|---|---|---|---|
| Stock Price ($) | 91.09 | 63.61 | -30.2% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 15,468 | 15,483 | 0.1% |
| Net Income Margin (%) | 1.4% | 1.3% | -2.8% |
| P/E Multiple | 13.6 | 9.7 | -28.2% |
| Shares Outstanding (Mil) | 32 | 32 | 0.0% |
| Cumulative Contribution | -30.2% |
Market Drivers
7/31/2026 to 11/2/2026| Return | Correlation | |
|---|---|---|
| SAH | -30.2% | |
| Market (SPY) | 0.7% | 5.7% |
| Sector (XLY) | 1.8% | 12.7% |
Fundamental Drivers
The -18.4% change in SAH stock from 4/30/2026 to 11/2/2026 was primarily driven by a -59.5% change in the company's P/E Multiple.| (LTM values as of) | 4302026 | 11022026 | Change |
|---|---|---|---|
| Stock Price ($) | 77.95 | 63.61 | -18.4% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 15,191 | 15,483 | 1.9% |
| Net Income Margin (%) | 0.7% | 1.3% | 85.8% |
| P/E Multiple | 24.0 | 9.7 | -59.5% |
| Shares Outstanding (Mil) | 34 | 32 | 6.3% |
| Cumulative Contribution | -18.4% |
Market Drivers
4/30/2026 to 11/2/2026| Return | Correlation | |
|---|---|---|
| SAH | -18.4% | |
| Market (SPY) | 4.9% | 7.5% |
| Sector (XLY) | 0.0% | 18.3% |
Fundamental Drivers
The 2.4% change in SAH stock from 10/31/2025 to 11/2/2026 was primarily driven by a 55.0% change in the company's Net Income Margin (%).| (LTM values as of) | 10312025 | 11022026 | Change |
|---|---|---|---|
| Stock Price ($) | 62.13 | 63.61 | 2.4% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 15,178 | 15,483 | 2.0% |
| Net Income Margin (%) | 0.9% | 1.3% | 55.0% |
| P/E Multiple | 16.3 | 9.7 | -40.2% |
| Shares Outstanding (Mil) | 34 | 32 | 8.2% |
| Cumulative Contribution | 2.4% |
Market Drivers
10/31/2025 to 11/2/2026| Return | Correlation | |
|---|---|---|
| SAH | 2.4% | |
| Market (SPY) | 11.2% | 21.3% |
| Sector (XLY) | -0.9% | 27.4% |
Fundamental Drivers
The 41.9% change in SAH stock from 10/31/2023 to 11/2/2026 was primarily driven by a 19.3% change in the company's P/S Multiple.| (LTM values as of) | 10312023 | 11022026 | Change |
|---|---|---|---|
| Stock Price ($) | 44.84 | 63.61 | 41.9% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 14,378 | 15,483 | 7.7% |
| P/S Multiple | 0.1 | 0.1 | 19.3% |
| Shares Outstanding (Mil) | 35 | 32 | 10.4% |
| Cumulative Contribution | 41.9% |
Market Drivers
10/31/2023 to 11/2/2026| Return | Correlation | |
|---|---|---|
| SAH | 41.9% | |
| Market (SPY) | 86.0% | 35.6% |
| Sector (XLY) | 58.9% | 41.3% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| SAH Return | 29% | 2% | 17% | 15% | -0% | 5% | 85% |
| Peers Return | 44% | -7% | 48% | 13% | 2% | -4% | 123% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 10% | 101% |
Monthly Win Rates [3] | |||||||
| SAH Win Rate | 50% | 67% | 67% | 50% | 42% | 73% | |
| Peers Win Rate | 60% | 50% | 60% | 50% | 50% | 49% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 36% | |
Max Drawdowns [4] | |||||||
| SAH Max Drawdown | -22% | -36% | -36% | -19% | -32% | -47% | |
| Peers Max Drawdown | -24% | -31% | -24% | -19% | -25% | -34% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: LAD, PAG, AN, GPI, ABG. See SAH Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 11/2/2026 (YTD)
How Low Can It Go
| Event | SAH | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -23.2% | -18.8% |
| % Gain to Breakeven | 30.3% | 23.1% |
| Time to Breakeven | 70 days | 79 days |
| Summer-Fall 2023 Five Percent Yield Shock | ||
| % Loss | -14.4% | -9.5% |
| % Gain to Breakeven | 16.8% | 10.5% |
| Time to Breakeven | 13 days | 24 days |
| 2023 SVB Regional Banking Crisis | ||
| % Loss | -34.9% | -6.7% |
| % Gain to Breakeven | 53.5% | 7.1% |
| Time to Breakeven | 272 days | 31 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -29.5% | -24.5% |
| % Gain to Breakeven | 41.8% | 32.4% |
| Time to Breakeven | 57 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -65.4% | -33.7% |
| % Gain to Breakeven | 188.7% | 50.9% |
| Time to Breakeven | 74 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -29.5% | -19.2% |
| % Gain to Breakeven | 41.8% | 23.8% |
| Time to Breakeven | 123 days | 105 days |
In The Past
Sonic Automotive's stock fell -23.2% during the 2025 US Tariff Shock. Such a loss loss requires a 30.3% gain to breakeven.
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Asset Allocation
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| Event | SAH | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -23.2% | -18.8% |
| % Gain to Breakeven | 30.3% | 23.1% |
| Time to Breakeven | 70 days | 79 days |
| 2023 SVB Regional Banking Crisis | ||
| % Loss | -34.9% | -6.7% |
| % Gain to Breakeven | 53.5% | 7.1% |
| Time to Breakeven | 272 days | 31 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -29.5% | -24.5% |
| % Gain to Breakeven | 41.8% | 32.4% |
| Time to Breakeven | 57 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -65.4% | -33.7% |
| % Gain to Breakeven | 188.7% | 50.9% |
| Time to Breakeven | 74 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -29.5% | -19.2% |
| % Gain to Breakeven | 41.8% | 23.8% |
| Time to Breakeven | 123 days | 105 days |
| 2015-2016 China Devaluation / Global Growth Scare | ||
| % Loss | -28.9% | -12.2% |
| % Gain to Breakeven | 40.6% | 13.9% |
| Time to Breakeven | 298 days | 62 days |
| 2014-2016 Oil Price Collapse | ||
| % Loss | -34.8% | -6.8% |
| % Gain to Breakeven | 53.4% | 7.3% |
| Time to Breakeven | 376 days | 15 days |
| 2011 US Debt Ceiling Crisis & European Contagion | ||
| % Loss | -33.0% | -17.9% |
| % Gain to Breakeven | 49.2% | 21.8% |
| Time to Breakeven | 30 days | 123 days |
| 2010 Eurozone Sovereign Debt Crisis / Flash Crash | ||
| % Loss | -35.9% | -15.4% |
| % Gain to Breakeven | 56.0% | 18.2% |
| Time to Breakeven | 149 days | 125 days |
| 2008-2009 Global Financial Crisis | ||
| % Loss | -95.0% | -53.4% |
| % Gain to Breakeven | 1899.9% | 114.4% |
| Time to Breakeven | 1281 days | 1085 days |
In The Past
Sonic Automotive's stock fell -23.2% during the 2025 US Tariff Shock. Such a loss loss requires a 30.3% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About Sonic Automotive (SAH)
Sonic Automotive, Inc. (SAH) is a prominent automotive retailer primarily operating across the United States. The company engages in the sale of both new and used cars and light trucks, complemented by a wide array of associated services and products. It serves a diverse customer base through two distinct operational segments.
The first core segment, "Franchised Dealerships," focuses on distributing new and pre-owned vehicles from numerous major manufacturers. Beyond vehicle sales, this segment provides crucial after-sales support, including vehicle maintenance, manufacturer warranty repairs, and collision repair services, alongside the sale of replacement parts. It further assists customers by arranging financing, insurance, extended warranties, and various other aftermarket products.
The second key segment, "EchoPark," specializes exclusively in the retail sale of pre-owned cars and light trucks through its network of dedicated specialty stores. This segment also supports its customers by facilitating finance and insurance product sales, providing a comprehensive and focused experience for buyers in the used vehicle market.
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Like AutoNation, a major retailer of new and used cars and automotive services.
Think of it as CarMax, but also owning many traditional new car dealerships.
The "Walmart of cars," offering a wide range of new and used vehicles, parts, and service.
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- New and Used Vehicle Sales: Sonic Automotive sells new cars and light trucks through its franchised dealerships and used cars and light trucks through both franchised dealerships and EchoPark stores.
- Vehicle Parts Sales: The company sells replacement parts for vehicles.
- Vehicle Repair and Maintenance Services: Services include vehicle maintenance, manufacturer warranty repair, and paint and collision repair.
- Financial and Aftermarket Product Arrangement Services: Sonic Automotive arranges extended warranties, service contracts, financing, insurance, and other aftermarket products for its customers.
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Sonic Automotive (SAH) sells primarily to individuals.
The company serves the following categories of individual customers:
- New Vehicle Purchasers: Individuals looking to buy brand-new cars and light trucks from the various franchises Sonic Automotive operates. These customers often prioritize the latest models, manufacturer warranties, and specific brand experiences.
- Used Vehicle Purchasers: Individuals seeking pre-owned cars and light trucks. This category includes customers buying used vehicles from both the franchised dealerships and the specialized EchoPark and Northwest Motorsport stores, often prioritizing value, a wider selection of makes/models, or specific budget considerations.
- Vehicle Service and Parts Customers: Individuals who require maintenance, repairs (including manufacturer warranty repairs and collision repair), or replacement parts for their vehicles. These customers utilize the service departments of Sonic Automotive's dealerships regardless of where they originally purchased their vehicle.
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- General Motors (GM)
- Ford Motor Company (F)
- Stellantis N.V. (STLA)
- Toyota Motor Corporation (TM)
- Honda Motor Co., Ltd. (HMC)
- Hyundai Motor Company (HYMTF)
- Kia Corporation (KICPY)
- Nissan Motor Co., Ltd. (NSANY)
- Mazda Motor Corporation (MZDAY)
- Subaru Corporation (FUJHY)
- Volkswagen AG (VWAGY)
- Porsche AG (DRPRF)
- Bayerische Motoren Werke AG (BMWYY)
- Mercedes-Benz Group AG (MBGAF)
- Tata Motors Limited (TTM)
- Volvo Car AB (VLVLY)
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David Bruton Smith, Chairman and Chief Executive Officer
David Bruton Smith was elected Chief Executive Officer of Sonic Automotive in September 2018 and Chairman of the Board in July 2022. He has served in Sonic's organization since 1998, holding various roles including Executive Vice Chairman and Chief Strategic Officer, Vice Chairman, Executive Vice President, Senior Vice President of Corporate Development, Vice President of Corporate Strategy, and Dealer Operator and General Manager of several Sonic dealerships. Mr. Smith is also a director and officer of Sonic Financial Corporation, the largest stockholder of Sonic, and a co-owner and director of Speedway Motorsports.
Heath R. Byrd, Executive Vice President, Chief Financial Officer
Heath R. Byrd has served as Sonic's Executive Vice President and Chief Financial Officer since April 2013. He joined Sonic in 2007, initially serving as Vice President and Chief Information Officer from December 2007 to March 2013. Prior to joining Sonic, Mr. Byrd held various management positions at HR America, Inc., a workforce management firm, including a director, President and Chief Operating Officer, and Chief Financial Officer and Chief Information Officer. He also previously served as a Manager in the Management Consulting Division of Ernst & Young LLP. Mr. Byrd and his partners sold HR America in 2007.
Jeff Dyke, President, Director
Jeff Dyke has over 25 years of experience in the automotive retail industry. He has served as President of Sonic Automotive since October 2018 and was elected to the company's Board of Directors in July 2019. Mr. Dyke joined Sonic in October 2005 as the Vice President of Retail Strategy. His previous roles at Sonic include Division Vice President - Eastern Division, Division Chief Operating Officer – Southeast Division, and Executive Vice President of Operations, where he oversaw Sonic's retail automotive operations and EchoPark Automotive. Before joining Sonic, Mr. Dyke worked at AutoNation from 1996 to 2005, holding several leadership positions.
B. Scott Smith, Director, Co-Founder
B. Scott Smith has been a director of Sonic since July 2022. He is a co-owner of Speedway Motorsports and a director and officer of Sonic Financial Corporation. Mr. Smith previously served as Sonic's Chief Executive Officer from July 2015 to September 2018, and as President and Chief Strategic Officer from March 2007 to July 2015. He was also previously a director of Sonic from its organization in January 1997 until September 2018.
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Here are the key risks to Sonic Automotive (symbol: SAH):
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Economic Fluctuations and Interest Rate Sensitivity: Sonic Automotive's business is highly susceptible to general economic conditions, including fluctuations in interest rates, inflation, vehicle valuations, employment levels, consumer spending, and credit availability. Downturns in these areas can significantly impact consumer demand for both new and used vehicles, as well as the availability and cost of financing for vehicle purchases. Given the company's significant indebtedness, rising interest rates also increase its borrowing costs, further affecting financial health and profitability.
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Competitive Pressures and Automotive Industry Disruption: The automotive retail industry faces intense competition from both traditional dealerships and new entrants, including technology-focused companies. There is an increasing shift towards online vehicle sales and direct-to-consumer models by manufacturers, which poses a threat to the traditional dealership operational model. Furthermore, the transition to electric vehicles (EVs) presents challenges as these vehicles may require less maintenance, potentially reducing the company's service revenue, and necessitate significant adaptation to changing consumer demand and manufacturer production capabilities.
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Supply Chain Disruptions and Reliance on Manufacturer Relationships: Sonic Automotive's operations are vulnerable to disruptions in the global supply chain, which can hinder the ability of vehicle manufacturers to produce and deliver sufficient new vehicles and parts. The company also heavily relies on vehicle manufacturers for sales incentives, warranties, new vehicle models, and approvals for acquisitions and expansions. A reduction or discontinuation of manufacturer incentive programs, the awarding of franchises to competitors in the same markets, or changes in manufacturer relationships could materially and adversely affect Sonic Automotive's profitability and growth strategy.
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- Direct-to-consumer (DTC) sales models by automotive manufacturers, potentially bypassing traditional franchised dealerships for new vehicle sales.
- Reduced vehicle maintenance and service revenue streams due to the increasing adoption of electric vehicles (EVs), which require less routine maintenance compared to internal combustion engine vehicles.
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The addressable markets for Sonic Automotive's main products and services in the U.S. region are as follows:
- Used Cars and Light Trucks: The United States used car market was valued at approximately USD 852.80 billion in 2025 and is estimated to grow to USD 871.30 billion in 2026.
- Automotive Aftermarket (Replacement Parts, Vehicle Maintenance, Manufacturer Warranty Repair, and Paint and Collision Repair Services): The U.S. automotive aftermarket size was USD 238.40 billion in 2025 and is projected to reach around USD 364.49 billion by 2035. Additionally, the U.S. light-duty automotive aftermarket was projected at USD 405 billion in 2024.
- Automotive Finance (including Extended Warranties, Service Contracts): The U.S. automotive finance market was valued at USD 690.9 billion in 2024.
- Automotive Insurance: The United States motor insurance market size is projected to be USD 487.65 billion in 2025 and USD 532.45 billion in 2026.
For the sale of new cars and light trucks, while Sonic Automotive operates in this segment, a specific total market value for new car sales in the U.S. was not explicitly identified. However, total light vehicle sales in the United States reached 15.80 million units in February 2026.
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Sonic Automotive (SAH) is expected to drive future revenue growth over the next 2-3 years through several strategic initiatives and improving market conditions:
- EchoPark Expansion and Store Openings: Sonic Automotive plans to significantly expand its EchoPark used-car network, with new store openings resuming in late 2026 and accelerating throughout 2027. The long-term goal for the EchoPark segment is to achieve 90% U.S. market coverage and sell over 1 million used vehicles annually.
- Increased EchoPark Brand Investment and E-commerce Development: The company intends to invest between $10 million and $20 million in an advertising campaign beginning in 2026 to enhance the EchoPark brand and launch a new e-commerce app. This investment aims to boost brand awareness and drive higher sales volume.
- Improved Used Vehicle Inventory from Lease Returns: A significant increase in lease maturities is anticipated starting in the latter half of 2026 and continuing into 2027. This influx of late-model used vehicles will address previous inventory shortages that hindered EchoPark's growth, providing a crucial and cost-effective source of inventory. Sonic also plans to source more vehicles internally from its franchised dealerships.
- Growth in Fixed Operations (Service and Parts) within Franchised Dealerships: The Franchised Dealerships segment has demonstrated consistent growth in high-margin fixed operations revenue, which includes vehicle maintenance, repairs, and parts sales. This growth is supported by strategic increases in technician headcount and efforts to retain and develop skilled labor.
- Strategic Acquisitions in the Franchised Dealership Segment: Recent strategic acquisitions, such as the four Jaguar Land Rover dealerships in California, are expected to contribute approximately $500 million in annualized revenues to the Franchised Dealerships segment. This indicates an ongoing strategy to grow this segment through targeted acquisitions.
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Capital Allocation Decisions (2021-2026)
Share Repurchases
- Sonic Automotive actively engaged in share repurchases, reducing its total shares outstanding by more than a fifth between the first quarter of 2020 and the first quarter of 2024.
- As of March 31, 2024, the company had $260 million remaining from its current buyback authorization, with no specified expiry date.
- In 2025, Sonic Automotive repurchased approximately 1.3 million shares of its Class A Common Stock for an aggregate purchase price of approximately $82.4 million.
Outbound Investments
- Sonic Automotive made significant cash acquisitions totaling $1,018.9 million in 2021.
- The company continued to make cash acquisitions, with $102.3 million in 2022, $75.1 million in 2023, $54.8 million in 2024, and $440.3 million in 2025.
- These investments are part of the company's strategy for active portfolio optimization, including acquisitions, and aim to grow both franchised dealerships and EchoPark used-vehicle stores.
Capital Expenditures
- The latest value for Sonic Automotive's capital expenditure (Last Twelve Months) was $202 million as of June 15, 2025.
- Capital expenditures peaked in 2021, with a significant annual jump of 134%, then saw a decline of 24% in 2022.
- These expenditures are focused on maintaining existing property, plant, and equipment, as well as expanding into new properties.
Peer Outperformance in Automotive Retail
| Ticker | Name | Rev Growth 3Y Avg | P/E | 1Y | 3Y | 5Y | 5Y Gap |
|---|---|---|---|---|---|---|---|
| SAH | Sonic Automotive | 2.6% | 9.7x | 2.4% | 28.2% | 40.3% | — |
| MUSA | Murphy USA | 2.8% | 14.1x | 44.0% | 37.2% | 220.1% | +180pp |
| PAG | Penske Automotive | 3.7% | 15.5x | 37.6% | 48.9% | 124.7% | +84pp |
| Industry | Names | 1Y med | 3Y med | 5Y med | Top 3 by 5Y |
|---|---|---|---|---|---|
| Education Services | 14 | -3.2% | 35.5% | 76.9% | CVSA 255% · GHC 117% · LRN 109% |
| Homebuilding | 17 | 3.8% | 32.7% | 38.5% | PHM 188% · CVCO 174% · TOL 169% |
| Hotels, Resorts & Cruise Lines | 21 | 24.4% | 60.9% | 20.3% | RCL 278% · MAR 171% · HLT 162% |
| Automotive Retail ← | 17 | -0.6% | 15.0% | 11.8% | MUSA 220% · PAG 125% · ORLY 119% |
| Home Furnishings | 3 | 2.7% | 74.8% | 3.9% | SGI 58% · MHK -15% |
| Home Improvement Retail | 5 | -7.6% | 18.9% | 3.4% | HD 5% · LOW 3% · FND -65% |
| Footwear | 9 | 86.5% | 82.4% | -8.5% | DECK 29% · SHOO 9% · CROX -9% |
| Specialized Consumer Services | 10 | -5.3% | 38.1% | -13.8% | HRB 171% · FTDR 126% · ADT 29% |
| Restaurants | 36 | 3.1% | -5.5% | -14.6% | EAT 407% · CAKE 209% · TXRH 133% |
| Distributors | 4 | -8.1% | -15.2% | -23.8% | ARMK 113% · GPC 8% · POOL -55% |
| Leisure Products | 14 | -11.3% | -11.9% | -33.0% | GOLF 82% · HAS 54% · BC -9% |
| Household Appliances | 18 | 20.9% | 18.8% | -33.8% | WHR -81% |
| Apparel, Accessories & Luxury Goods | 29 | 11.4% | 30.3% | -38.6% | RL 274% · TPR 246% · KTB 68% |
| Leisure Facilities | 12 | -4.0% | 3.1% | -40.5% | OSW 186% · LTH 149% · PLNT -33% |
| Apparel Retail | 27 | 1.0% | 5.7% | -41.2% | ANF 287% · TJX 125% · ROST 113% |
| Computer & Electronics Retail | 3 | 23.3% | 65.6% | -41.7% | BBY -2% · GME -53% |
| Broadline Retail | 12 | -3.1% | 20.8% | -44.1% | EBAY 76% · AMZN 48% · OLLI 25% |
| Automotive Parts & Equipment | 39 | -10.5% | -10.6% | -45.9% | MOD 1011% · GTX 190% · PATK 73% |
| Casinos & Gaming | 21 | -24.9% | -19.9% | -50.2% | MCRI 82% · BYD 24% · RRR 21% |
| Other Specialty Retail | 24 | -9.6% | -14.2% | -60.7% | ULTA 71% · ASO 47% · DKS 29% |
| Automobile Manufacturers | 8 | -11.6% | -44.2% | -69.3% | GM 69% · TSLA 3% · F -5% |
| Consumer Electronics | 11 | -35.8% | -39.8% | -80.5% | GRMN 111% |
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Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 208.62 |
| Mkt Cap | 4.9 |
| Rev LTM | 24,595 |
| Op Inc LTM | 1,021 |
| FCF LTM | 125 |
| FCF 3Y Avg | 104 |
| CFO LTM | 391 |
| CFO 3Y Avg | 328 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | -1.6% |
| Rev Chg 3Y Avg | 5.0% |
| Rev Chg Q | -0.0% |
| QoQ Delta Rev Chg LTM | -0.0% |
| Op Inc Chg LTM | -11.6% |
| Op Inc Chg 3Y Avg | -5.7% |
| Op Mgn LTM | 3.9% |
| Op Mgn 3Y Avg | 4.3% |
| QoQ Delta Op Mgn LTM | -0.1% |
| CFO/Rev LTM | 1.6% |
| CFO/Rev 3Y Avg | 1.7% |
| FCF/Rev LTM | 0.6% |
| FCF/Rev 3Y Avg | 0.4% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 4.9 |
| P/S | 0.2 |
| P/Op Inc | 4.6 |
| P/EBIT | 4.1 |
| P/E | 8.5 |
| P/CFO | 12.1 |
| Total Yield | 12.5% |
| Dividend Yield | 0.8% |
| FCF Yield 3Y Avg | 1.8% |
| D/E | 1.9 |
| Net D/E | 1.8 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | 6.3% |
| 3M Rtn | -12.2% |
| 6M Rtn | -1.5% |
| 12M Rtn | -3.9% |
| 3Y Rtn | 23.5% |
| 1M Excs Rtn | 8.7% |
| 3M Excs Rtn | -8.7% |
| 6M Excs Rtn | -6.2% |
| 12M Excs Rtn | -13.5% |
| 3Y Excs Rtn | -48.2% |
Comparison Analyses
Segment Financials
Revenue by Segment| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Franchised Dealerships Segment | 12,879 | 11,939 | 11,775 | 11,485 | 10,051 |
| EchoPark Segment | 2,072 | 2,128 | 2,434 | 2,463 | 2,345 |
| Powersports Segment | 203 | 157 | 163 | 54 | 0 |
| Total | 15,154 | 14,224 | 14,372 | 14,001 | 12,396 |
| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Franchised Dealerships Segment | 4,934 | 4,704 | 4,456 | 4,364 | 3,935 |
| Pre-Owned Stores Segment | 506 | 574 | |||
| Floor plan deposit balance | 300 | 340 | |||
| EchoPark Segment | 224 | 233 | 668 | 268 | 741 |
| Cash and cash equivalents | 6 | 44 | 29 | 229 | 299 |
| Powersports Segment | 212 | 118 | |||
| Corporate and other: Other corporate assets | 0 | ||||
| Total | 5,971 | 5,896 | 5,365 | 4,978 | 4,975 |
Price Behavior
| Market Price | $63.61 | |
| Market Cap ($ Bil) | 2.0 | |
| First Trading Date | 11/12/1997 | |
| Distance from 52W High | -43.2% | |
| 50 Days | 200 Days | |
| DMA Price | $67.44 | $72.64 |
| DMA Trend | down | indeterminate |
| Distance from DMA | -5.7% | -12.4% |
| 3M | 1YR | |
| Volatility | 43.1% | 42.8% |
| Downside Capture | 181.60 | 100.08 |
| Upside Capture | -4.61 | 93.29 |
| Correlation (S&P 500) | 8.7% | 21.9% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | -0.27 | 0.32 | 0.25 | 0.32 | 0.72 | 0.96 |
| Up Beta | -10.46 | -2.77 | -2.14 | -1.94 | 0.10 | 1.11 |
| Down Beta | -0.14 | -0.32 | -0.21 | 0.53 | 0.77 | 0.66 |
| Up Capture | 56% | 18% | 3% | 54% | 81% | 90% |
| Bmk +ve Days | 12 | 18 | 28 | 62 | 130 | 427 |
| Stock +ve Days | 10 | 19 | 28 | 67 | 134 | 383 |
| Down Capture | -20% | 172% | 202% | 114% | 96% | 102% |
| Bmk -ve Days | 10 | 25 | 36 | 64 | 121 | 325 |
| Stock -ve Days | 12 | 24 | 36 | 59 | 117 | 365 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with SAH | |
|---|---|---|---|---|
| SAH | 4.5% | 42.8% | 0.21 | - |
| Sector ETF (XLY) | 1.7% | 19.3% | -0.05 | 27.7% |
| Equity (SPY) | 11.6% | 12.8% | 0.57 | 21.4% |
| Gold (GLD) | -2.3% | 28.6% | -0.09 | 11.7% |
| Commodities (DBC) | 43.1% | 20.9% | 1.60 | -7.4% |
| Real Estate (VNQ) | 11.0% | 13.7% | 0.50 | 27.4% |
| Bitcoin (BTCUSD) | -28.8% | 43.6% | -0.66 | 14.9% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with SAH | |
|---|---|---|---|---|
| SAH | 5.7% | 42.9% | 0.25 | - |
| Sector ETF (XLY) | 4.5% | 24.1% | 0.14 | 43.6% |
| Equity (SPY) | 12.0% | 17.1% | 0.52 | 40.5% |
| Gold (GLD) | 16.5% | 19.0% | 0.69 | 5.0% |
| Commodities (DBC) | 8.4% | 19.6% | 0.31 | 8.3% |
| Real Estate (VNQ) | 1.1% | 18.9% | -0.05 | 40.2% |
| Bitcoin (BTCUSD) | 4.1% | 51.6% | 0.26 | 17.0% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with SAH | |
|---|---|---|---|---|
| SAH | 15.2% | 48.2% | 0.47 | - |
| Sector ETF (XLY) | 12.6% | 22.2% | 0.52 | 46.6% |
| Equity (SPY) | 15.2% | 17.9% | 0.72 | 45.2% |
| Gold (GLD) | 11.6% | 16.5% | 0.57 | 0.4% |
| Commodities (DBC) | 7.8% | 18.1% | 0.34 | 17.0% |
| Real Estate (VNQ) | 5.4% | 20.7% | 0.22 | 45.4% |
| Bitcoin (BTCUSD) | 61.7% | 66.3% | 1.01 | 11.8% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
Earnings Returns History
Updated 11/3/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 10/29/2026 | 0.8% | ||
| 7/30/2026 | -10.9% | -22.9% | -29.6% |
| 4/30/2026 | 7.4% | 7.8% | 12.7% |
| 2/18/2026 | 7.9% | 7.8% | 4.5% |
| 10/23/2025 | -15.9% | -19.1% | -23.2% |
| 7/24/2025 | -5.7% | -9.7% | -2.1% |
| 4/24/2025 | 1.8% | 2.9% | 13.9% |
| 2/12/2025 | -4.0% | -3.4% | -20.2% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 12 | 14 | 12 |
| # Negative | 12 | 9 | 11 |
| Median Positive | 5.6% | 6.7% | 13.2% |
| Median Negative | -3.0% | -9.7% | -9.4% |
| Max Positive | 13.5% | 14.1% | 46.5% |
| Max Negative | -15.9% | -22.9% | -29.6% |
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 10/29/2026 | 0.8% | ||
| 7/30/2026 | -10.9% | -22.9% | -29.6% |
| 4/30/2026 | 7.4% | 7.8% | 12.7% |
| 2/18/2026 | 7.9% | 7.8% | 4.5% |
| 10/23/2025 | -15.9% | -19.1% | -23.2% |
| 7/24/2025 | -5.7% | -9.7% | -2.1% |
| 4/24/2025 | 1.8% | 2.9% | 13.9% |
| 2/12/2025 | -4.0% | -3.4% | -20.2% |
| 10/24/2024 | 3.6% | 6.3% | 13.9% |
| 8/5/2024 | 3.4% | 7.0% | 7.9% |
| 4/25/2024 | 10.9% | 12.1% | 9.4% |
| 2/14/2024 | -2.1% | -10.4% | -9.4% |
| 10/26/2023 | 13.5% | 14.1% | 21.8% |
| 7/27/2023 | -0.5% | -2.5% | 1.4% |
| 4/27/2023 | -11.7% | -20.0% | -20.0% |
| 2/15/2023 | -1.1% | -5.6% | -15.8% |
| 10/27/2022 | 5.1% | 1.8% | 13.6% |
| 7/28/2022 | 3.2% | 8.0% | 46.5% |
| 4/28/2022 | -0.5% | 14.1% | 8.3% |
| 2/16/2022 | 6.1% | 0.3% | -4.3% |
| 10/28/2021 | -1.2% | 4.8% | -5.6% |
| 7/29/2021 | 6.2% | 1.2% | -1.1% |
| 4/29/2021 | -0.1% | 1.6% | -4.3% |
| 2/17/2021 | -6.5% | -5.7% | 25.0% |
| SUMMARY STATS | |||
| # Positive | 12 | 14 | 12 |
| # Negative | 12 | 9 | 11 |
| Median Positive | 5.6% | 6.7% | 13.2% |
| Median Negative | -3.0% | -9.7% | -9.4% |
| Max Positive | 13.5% | 14.1% | 46.5% |
| Max Negative | -15.9% | -22.9% | -29.6% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 09/30/2026 | 10/29/2026 | 10-Q |
| 06/30/2026 | 07/30/2026 | 10-Q |
| 03/31/2026 | 04/30/2026 | 10-Q |
| 12/31/2025 | 02/23/2026 | 10-K |
| 09/30/2025 | 10/23/2025 | 10-Q |
| 06/30/2025 | 07/24/2025 | 10-Q |
| 03/31/2025 | 04/24/2025 | 10-Q |
| 12/31/2024 | 02/19/2025 | 10-K |
| 09/30/2024 | 10/24/2024 | 10-Q |
| 06/30/2024 | 08/08/2024 | 10-Q |
| 03/31/2024 | 04/25/2024 | 10-Q |
| 12/31/2023 | 02/22/2024 | 10-K |
| 09/30/2023 | 10/26/2023 | 10-Q |
| 06/30/2023 | 07/27/2023 | 10-Q |
| 03/31/2023 | 04/27/2023 | 10-Q |
| 12/31/2022 | 02/17/2023 | 10-K |
| Report Date | Filing Date | Filing |
|---|---|---|
| 09/30/2026 | 10/29/2026 | 10-Q |
| 06/30/2026 | 07/30/2026 | 10-Q |
| 03/31/2026 | 04/30/2026 | 10-Q |
| 12/31/2025 | 02/23/2026 | 10-K |
| 09/30/2025 | 10/23/2025 | 10-Q |
| 06/30/2025 | 07/24/2025 | 10-Q |
| 03/31/2025 | 04/24/2025 | 10-Q |
| 12/31/2024 | 02/19/2025 | 10-K |
| 09/30/2024 | 10/24/2024 | 10-Q |
| 06/30/2024 | 08/08/2024 | 10-Q |
| 03/31/2024 | 04/25/2024 | 10-Q |
| 12/31/2023 | 02/22/2024 | 10-K |
| 09/30/2023 | 10/26/2023 | 10-Q |
| 06/30/2023 | 07/27/2023 | 10-Q |
| 03/31/2023 | 04/27/2023 | 10-Q |
| 12/31/2022 | 02/17/2023 | 10-K |
| 09/30/2022 | 10/28/2022 | 10-Q |
| 06/30/2022 | 07/28/2022 | 10-Q |
| 03/31/2022 | 04/28/2022 | 10-Q |
| 12/31/2021 | 02/25/2022 | 10-K |
| 09/30/2021 | 10/28/2021 | 10-Q |
| 06/30/2021 | 07/29/2021 | 10-Q |
| 03/31/2021 | 04/29/2021 | 10-Q |
| 12/31/2020 | 02/23/2021 | 10-K |
| 09/30/2020 | 10/29/2020 | 10-Q |
| 06/30/2020 | 07/31/2020 | 10-Q |
| 03/31/2020 | 05/11/2020 | 10-Q |
| 12/31/2019 | 02/21/2020 | 10-K |
Recent Forward Guidance
Updated 11/2/2026Latest: Q3 2026 Earnings Reported 10/29/2026
| Forward Guidance | Guidance Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q4 2026 Dividends | Reported | 0.41 | ||||||
Prior: Q2 2026 Earnings Reported 7/30/2026
| Forward Guidance | Guidance Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Annualized Revenue | Reported | 100.00 Mil | 0 | Affirmed | Guidance: 100.00 Mil for 2026 | |||
Insider Activity
Updated 10/16/2026| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Rusnak, Paul P | Direct | Buy | 10162026 | 59.90 | 12,555 | 752,044 | 310,088,882 | Form | |
| 2 | Rusnak, Paul P | Direct | Buy | 10092026 | 59.78 | 13,701 | 819,046 | 308,717,131 | Form | |
| 3 | Rusnak, Paul P | Direct | Buy | 10072026 | 59.90 | 1,119 | 67,028 | 308,516,148 | Form | |
| 4 | Rusnak, Paul P | Direct | Buy | 10062026 | 59.76 | 27,756 | 1,658,699 | 307,728,204 | Form | |
| 5 | Rusnak, Paul P | Direct | Buy | 10022026 | 59.50 | 21,645 | 1,287,878 | 304,737,878 | Form |
| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Rusnak, Paul P | Direct | Buy | 10162026 | 59.90 | 12,555 | 752,044 | 310,088,882 | Form | |
| 2 | Rusnak, Paul P | Direct | Buy | 10092026 | 59.78 | 13,701 | 819,046 | 308,717,131 | Form | |
| 3 | Rusnak, Paul P | Direct | Buy | 10072026 | 59.90 | 1,119 | 67,028 | 308,516,148 | Form | |
| 4 | Rusnak, Paul P | Direct | Buy | 10062026 | 59.76 | 27,756 | 1,658,699 | 307,728,204 | Form | |
| 5 | Rusnak, Paul P | Direct | Buy | 10022026 | 59.50 | 21,645 | 1,287,878 | 304,737,878 | Form | |
| 6 | Dyke, Jeff | President | Direct | Sell | 6092026 | 85.22 | 35,114 | 2,992,440 | 46,331,768 | Form |
| 7 | Dyke, Jeff | President | Direct | Sell | 6092026 | 85.13 | 14,886 | 1,267,303 | 49,273,969 | Form |
| 8 | Dyke, Jeff | President | by Ash & Erin, LLC | Sell | 6082026 | 82.97 | 50,000 | 4,148,335 | 9,260,909 | Form |
| 9 | Byrd, Heath | EVP and CFO | Direct | Sell | 6022026 | 85.00 | 5,061 | 430,185 | 11,385,920 | Form |
| 10 | Byrd, Heath | EVP and CFO | Direct | Sell | 6012026 | 85.00 | 9,526 | 809,710 | 11,816,105 | Form |
| 11 | Rusnak, Paul P | Direct | Buy | 2182026 | 59.95 | 11,481 | 688,286 | 305,745,000 | Form | |
| 12 | Rusnak, Paul P | Direct | Buy | 2182026 | 59.92 | 48,540 | 2,908,517 | 304,904,058 | Form | |
| 13 | Rusnak, Paul P | Direct | Buy | 2182026 | 59.97 | 11,483 | 688,636 | 302,247,541 | Form | |
| 14 | Rusnak, Paul P | Direct | Buy | 2182026 | 59.98 | 1,931 | 115,821 | 301,609,190 | Form | |
| 15 | Rusnak, Paul P | Direct | Buy | 2182026 | 59.96 | 7,827 | 469,307 | 301,392,837 | Form | |
| 16 | Rusnak, Paul P | Direct | Buy | 2182026 | 59.98 | 18,738 | 1,123,905 | 301,023,905 | Form |
Industry Resources
| Consumer Discretionary Resources |
| Retail Dive |
| Business of Fashion (BoF) |
| WWD (Women's Wear Daily) |
| National Retail Federation (NRF) |
| McKinsey & Company - Consumer |
| Mintel Consumer Trends |
| Automotive Retail Resources |
| Automotive News |
| Ward's Auto |
| CBT News |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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