SAH stock: buy or sell?
January 24th, 2020
Sonic Automotive, Inc. operates as an automotive retailer in the United States. It operates in two segments, Franchised Dealerships and EchoPark.
Should I buy SAH stock?You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. That's why is so important to choose your own trading strategy that fits your character as inversor. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.
None of our preferred buy setups matches with Sonic Automotive stock situation right now, therefore this is not a suitable entry point.
|New all-time high||No|
|New 52 week high||No|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
Is Sonic Automotive stock a buy?
Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness.At Stocks2.com, we gathered 8 ratings published for SAH stock in the last month. The general sentiment of these ratings is bearish for SAH stock, with 4 negative ratings.
|Date||Analyst / Broker||Previous rating||Current rating|
|2019-9-13||Bank of America||Neutral||Underperform|
|2019-9-10||JPMorgan Chase & Co.||Underweight||Neutral|
|2019-8-15||Bank of America||Buy||Neutral|
|2019-4-26||Bank of America||Neutral||Buy|
|2019-2-19||JPMorgan Chase & Co.||n/a||Underweight|
SAH stock analysis
Sonic Automotive slipped a rough -1.99% and closed at $30.46.
Shares of Sonic Automotive slipped a rough -1.99% and closed at $30.46. SAH is soaring again after a 4.51% correction from its last top on Jan/16 at $31.52. On October, SAH hit new all time highs, pushing higher previous ATH of $33.80 recorded on October. New ATHs are usual entry points for many trading setups as there aren't higher resistences.
After boosting an extraordinary 6.60% in a week last week, Sonic Automotive closed this week at $30.46 and slipped a fatal -2.47%. Early January SAH plummed a dreadful -5.31% in just one week.
SAH shows a long term strength with several rising tops and rising bottoms. It left a new bottom at $28.55 early January. Previous top ($35.30) will play as a resistance in possible new gains. Not so far away is the last all-time high Sonic Automotive marked late October 2019. Since mid June 2019 when SMA20w and SMA40w crossed up, SAH price gained $9.04 per share (42.20%). Since late April 2019 when SAH stock price broke up the SMA40w line, it gained $14.95 (96.39%).
SAH stock price history
SAH stock went public on November 12th, 1997 with a price of $4.661. Since then, SAH stock surged a 553.60%, with an average of 25.20% per year. If you had invested right after SAH's IPO a $1,000 in SAH stock in 1997, it would worth $5,536.00 today.
1: Adjusted price after possible price splits or reverse-splits.
SAH stock historical price chart
SAH stock reached all-time highs on October with a price of $35.30.
SAH stock price target is $21.80Nobody can reliably foresee how stock prices may evolve in the future. However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. For the last 30 days we found 6 price targets for SAH stock:
|Date||Analyst / Broker||Action||Previous target||Current target||Diff|
|2019-9-10||JPMorgan Chase & Co.||Upgrades||$23.00||$30.00||30.4%|
|2019-8-2||Morgan Stanley||Raises Target||$18.00||$20.00||11.1%|
|2019-8-15||Bank of America||Downgrades||$26.00||$29.00||11.5%|
|2019-7-15||Buckingham Research||Raises Target||$15.00||$20.00||33.3%|
|2019-5-6||Morgan Stanley||Raises Target||$10.00||$18.00||80%|
|2019-2-19||JPMorgan Chase & Co.||Initiates||n/a||$14.00||-|
Financials and fundamental analysis
Earnings date and Earnings per ShareAfter posting its last earnings report on February, Sonic Automotive . Unfortunately, reported EPS is not yet available in our database.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsCompared to 2017, last anual sales report draw a tiny movement of 0.86% to $9,951.63 million USD. Likewise, its income margin (compared to revenues) stayed stable to 0.52%, that is $51.65 million.
|2013||$8,840 M||-||$84 M1.0%||-|
|2014||$9,197 M||4.04%||$97 M1.1%||15.62%|
|2015||$9,624 M||4.64%||$86 M0.9%||-11.22%|
|2016||$9,732 M||1.12%||$93 M1.0%||7.97%|
|2017||$9,867 M||1.39%||$93 M0.9%||-0.23%|
|2018||$9,952 M||0.86%||$52 M0.5%||-44.45%|
Quarterly financial resultsSonic Automotive reported $2,574.26 M in revenues for 2018-Q4, a 4.19% improvement compared to previous quarter. Reported quarter income marked $21.82 million with a profit margin of 0.85%. Profit margin stayed steady a 0.24% compared to previous quarter when profit margin was 0.61%. When comparing revenues to same quarter last year, Sonic Automotive sales marked an ugly slide and declined a -3.51%.
|2017-Q2||$2,410 M||-||$12 M0.5%||-|
|2017-Q3||$2,510 M||4.15%||$20 M0.8%||60.11%|
|2017-Q4||$2,668 M||6.29%||$62 M2.3%||214.32%|
|2018-Q1||$2,401 M||-10.01%||$-2 M-0.1%||-103.54%|
|2018-Q2||$2,506 M||4.37%||$17 M0.7%||-870.51%|
|2018-Q3||$2,471 M||-1.39%||$15 M0.6%||-10.57%|
|2018-Q4||$2,574 M||4.19%||$22 M0.8%||44.33%|
|2019-Q1||$2,389 M||-7.19%||$42 M1.8%||93.50%|
Sonic Automotive ownershipWhen you are planning to invest in shares of a stock, it's worth to check its ownership structure.
Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Sonic Automotive, 24.27% of all outstanding shares are owned by its staff.
Bearish positions for SAH stock account 0.00%, no big difference from last month.
The following table compares ownership indicators for other stocks related to Sonic Automotive:
|Market cap||$947.6 M|
|Total shares||31.1 M|
|Float shares||23.7 M|
|- Institutional holdings (%)||84.8%|
|- Insider holdings (%)||24.3%|
|Shares in short selling||0.0%|
|Friday, January 24th, 2020|
|Day range||$30.13 - $31.17|
|Average true range||$0.89|
|50d mov avg||$31.72|
|100d mov avg||$30.97|
|200d mov avg||$26.62|
Sonic Automotive performanceStocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. We compared Sonic Automotive against in the following table: