Sonic Automotive's impressive reinvestment and higher returns on capital employed are noteworthy. The stock's exceptional performance over the last five years is worth monitoring for continuation. However, potential investors should consider identified risks.

Insider transactions at Sonic Automotive over the past year are not very encouraging. Modest level of insider ownership suggests some alignment between insiders and shareholders. Lack of insider trading in the last quarter doesn't provide much information.

Sonic Automotive's rising returns and continuous reinvestment reflect its investment appeal. With its stock performing exceptionally over the past five years, Sonic's future looks promising if these upward trends persist.

Bank of America analyst projects potential boon from inventory constraints sparking a robust capital goods replacement cycle. Stephens' Daniel Imbro points to falling used auto prices as a positive indicator for companies such as Carvana, with an anticipation of these firms outshining rivals in the forthcoming year. Sonic Automotive receives top ratings from Wall Street, according to Seeking Alpha.

Management incentives may align with shareholders due to high insider ownership and selling at a premium. However, recent absence of insider trading and prior share selling sparks questions on the company's future prospects.