SAH stock: buy or sell?

SAH stock price: $30.46 -1.99% At close on January 24th, 2020

Updated on:
January 24th, 2020

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Shares of Sonic Automotive slipped a rough -1.99% and closed at $30.46.

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.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

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.
Is SAH a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-9-13Bank of AmericaNeutralUnderperform
2019-9-10JPMorgan Chase & Co.UnderweightNeutral
2019-8-2Morgan Stanleyn/aUnderweight
2019-8-15Bank of AmericaBuyNeutral
2019-7-15Buckingham Researchn/aNeutral
2019-5-6Morgan Stanleyn/aUnderweight
2019-4-26Bank of AmericaNeutralBuy
2019-2-19JPMorgan Chase & Co.n/aUnderweight

SAH stock analysis

Daily outlook

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.

SAH stock chart (daily)

Weekly outlook

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 chart (weekly)

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 $21.80

Nobody 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:
SAH stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-9-10JPMorgan Chase & Co.Upgrades$23.00$30.0030.4%
2019-8-2Morgan StanleyRaises Target$18.00$20.0011.1%
2019-8-15Bank of AmericaDowngrades$26.00$29.0011.5%
2019-7-15Buckingham ResearchRaises Target$15.00$20.0033.3%
2019-5-6Morgan StanleyRaises Target$10.00$18.0080%
2019-2-19JPMorgan Chase & Co.Initiatesn/a$14.00-
(in average)$18.40$21.8018.0%
Moving in a range from $30.00 and $14.00, the price prediction for Sonic Automotive stock is $21.80. In average, analysts' outlook on SAH price target is positive, improving the target by a 18.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

After posting its last earnings report on February, Sonic Automotive . Unfortunately, reported EPS is not yet available in our database.
SAH earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a0.31n/a
2017-Q32017-10-240.40.40.0%
2017-Q42018-02-270.790.846.3%
2018-Q12018-04-260.250.264.0%
2018-Q22018-07-270.340.352.9%
2018-Q32018-10-250.40.437.5%
2018-Q42019-02-200.750.761.3%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

Compared 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.

SAH annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$8,840 M-$84 M1.0%-
2014$9,197 M4.04%$97 M1.1%15.62%
2015$9,624 M4.64%$86 M0.9%-11.22%
2016$9,732 M1.12%$93 M1.0%7.97%
2017$9,867 M1.39%$93 M0.9%-0.23%
2018$9,952 M0.86%$52 M0.5%-44.45%

Quarterly financial results

Sonic 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%.
SAH quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$2,410 M-$12 M0.5%-
2017-Q3$2,510 M4.15%$20 M0.8%60.11%
2017-Q4$2,668 M6.29%$62 M2.3%214.32%
2018-Q1$2,401 M-10.01%$-2 M-0.1%-103.54%
2018-Q2$2,506 M4.37%$17 M0.7%-870.51%
2018-Q3$2,471 M-1.39%$15 M0.6%-10.57%
2018-Q4$2,574 M4.19%$22 M0.8%44.33%
2019-Q1$2,389 M-7.19%$42 M1.8%93.50%

Sonic Automotive ownership

When 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:

SAH
Market cap$947.6 M
Total shares31.1 M
Float shares23.7 M
  - Institutional holdings (%)84.8%
  - Insider holdings (%)24.3%
Shares in short selling0.0%

SAH summary

Friday, January 24th, 2020
Open$31.17
Close$30.46
Day range$30.13 - $31.17
Previous close$31.08
Session gain-1.99%
Average true range$0.89
50d mov avg$31.72
100d mov avg$30.97
200d mov avg$26.62
Daily patternlb01a
Weekly pattern lb03a

Sonic Automotive performance

Stocks 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:
Stock3m6m12m
SAHSonic Automotive-7.11%12.36%100.66%

Sonic Automotive competitors

Unfortunately, we could not find any public company that could be defined as Sonic Automotive competitor. This doesn't mean Sonic Automotive does not have any competitor in the market, it's just we could not detected it.