What smart money is saying about Sonic Automotive
3 funds in our archive have pitched Sonic Automotive — most recently Heartland Advisors Small Cap Value Strategy in June 2026.
Sonic Automotive, Inc. operates as a significant automotive retailer across the United States, structuring its diverse business activities into two primary divisions: Franchised Dealerships and EchoPark. The Franchised Dealerships segment is responsible for selling both new and pre-owned cars and light trucks, in addition to supplying replacement parts. This division also provides a full range of services, including routine vehicle maintenance, authorized manufacturer warranty repairs, and specialized paint and collision repair. Moreover, it assists customers in securing supplementary products such as extended warranties, service contracts, financing options, insurance, and other aftermarket offerings. The EchoPark segment specializes in the retail of used cars and light trucks. Operating from its dedicated pre-owned vehicle specialty stores, this division also helps clients with the purchase of finance and insurance products. As of December 31, 2021, Sonic Automotive's extensive network included 140 new vehicle franchises representing 28 distinct automotive brands. The company also managed 17 collision repair centers spread across 17 states, alongside 46 EchoPark stores located in 16 states, which comprised 11 Northwest Motorsport pre-owned vehicle outlets. Founded in 1997, Sonic Automotive, Inc. is headquartered in Charlotte, North Carolina.
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Position history
Every position in Sonic Automotive on record in the archive was reported in Q2 2026, across 3 fund letters — 3 opened or added to the position.
| Quarter | Letters | Bought | Sold | Theses |
|---|---|---|---|---|
| Q2 2026 | 3 | 3 | 0 | 3 |
Fund activity · 3 positions · 3 moves
- New positionHeartland Advisors Heartland Value FundJune 2026
“We reinitiated our position, paying a compelling single digit price-to-earnings multiple for a unique, growing, $15 billion industry leader.”
Sonic Automotive - New positionHeartland Advisors Small Cap Value StrategyJune 2026
“Sonic Automotive (SAH) , one of the largest auto dealership groups with locations in major markets in the West, Southwest, and Southeast, demonstrates that there are plenty of attractively priced, small-cap companies outside of Technology. We first purchased SAH for the Strategy in 2014. But we exited the position two years later due to extraordinary costs Sonic was incurring to launch a used car business. Still, we continued to monitor their progress for the subsequent 9 years and repurchased shares earlier this year. Sonic’s EchoPark used-car operation has reached profitability and has grown into a nationwide retailer specializing in stress-free, haggle-less sales. By streamlining inventory and focusing on 1-4 year-old autos, SAH can often price its vehicles $3,000 below competitors. Customers seem to like this approach, as Echo continues to grow nationwide. We believe SAH’s used-car strategy is ideally suited for the current economic climate, where higher gas prices and interest rates are putting pressure on consumers. According to our research, earnings per share for Sonic should reach $8 in 2027, compared with an estimated $7 this year. Our confidence is further buoyed by the fact that management has used free cash flow for an active, consistent buyback program. To put it in perspective, a decade ago SAH had $44.73 million shares outstanding, versus only $31.67 million today. The combination of an intriguing business model, solid earnings potential, and strong insider buying boosted our conviction. We reinitiated our position, paying a compelling single digit price-to-earnings multiple for a unique, growing, $15 billion industry leader.”
Sonic Automotive - New positionHeartland Advisors Value StrategyJune 2026
“So does Sonic Automotive (SAH) , one of the largest auto dealership groups with locations in major markets in the West, Southwest, and Southeast. We first purchased SAH for the Strategy in 2014. But we exited the position two years later due to extraordinary costs Sonic was incurring to launch a used car business. Still, we continued to monitor their progress for the subsequent 9 years and repurchased shares earlier this year. Sonic’s EchoPark used-car operation has reached profitability and has grown into a nationwide retailer specializing in stress-free, haggle-less sales. By streamlining inventory and focusing on 1-4 year-old autos, SAH can often price its vehicles $3,000 below competitors. Customers seem to like this approach, as Echo continues to grow nationwide. We believe SAH’s used-car strategy is ideally suited for the current economic climate, where higher gas prices and interest rates are putting pressure on consumers. According to our research, earnings per share for Sonic should reach $8 in 2027, compared with an estimated $7 this year. Our confidence is further buoyed by the fact that management has used free cash flow for an active, consistent buyback program. To put it in perspective, a decade ago SAH had 44.73 million shares outstanding, versus only 31.67 million today. The combination of an intriguing business model, solid earnings potential, and strong insider buying boosted our conviction. We reinitiated our position, paying a compelling single digit price-to-earnings multiple for a unique, growing, $15 billion industry leader.”
Sonic Automotive
Fund coverage · 3 theses
Sonic Automotive runs a profitable used-car platform with nationwide growth, consumer value appeal, strong buybacks, and an attractive single-digit valuation.
Read the full thesis- Heartland Advisors Value StrategyJune 2026
Sonic Automotive owns a profitable EchoPark used-car business, benefits from a consumer-friendly value proposition and buybacks, and trades at a compelling single-digit earnings multiple.
Read the full thesis - Heartland Value FundJune 2026
Sonic Automotive’s EchoPark used-car business has turned profitable, offers lower prices and nationwide growth, and is supported by buybacks, insider buying, and a low valuation.
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