SAH stock: buy or sell?

SAH stock price: $28.81 0.66% At close on September 20th, 2019

Updated on:
September 20th, 2019

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After sliding for 4 sessions, Friday Sonic Automotive raised a slightly good 0.66%, closing at $28.81. Friday session broke a read streak of 4 days.

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. Trading strategies are meant for helping you in the decision process of what stocks to choose and when is the best time to buy them. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

Currently, Sonic Automotive stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean SAH will fall in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is Sonic Automotive stock a buy?

Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we collected 8 ratings published for SAH stock in the last 30 days.

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

After sliding for 4 sessions, Friday Sonic Automotive raised a slightly good 0.66%, closing at $28.81.

On September/10, SAH hit new all time highs, pushing higher previous ATH of $31.99 recorded . New ATHs are usual entry points for many trading setups as there aren't higher resistences. After sliding for 4 sessions, Friday Sonic Automotive raised a slightly good 0.66%, closing at $28.81. Since SMA100d and SMA200d crossed up on June, SAH price climbed $6.18 per share (27.31%). SAH shows a short term strength with several rising tops and rising bottoms. In the very short term, on Sep/19 it marked a new bottom at $28.56 that should act a support if Sonic Automotive starts a trading flat base in the range of $28.56 - $32.58 If Sonic Automotive breakouts over $32.58 with average or higher volume, this would be a signal that the uptrend resumes.

SAH stock chart (daily)

Weekly outlook

After boosting an extraordinary 9.48% in a week last week, Sonic Automotive closed this week at $28.81 and plunged a hair-raising -6.46%.

Not so far away is the last price record Sonic Automotive marked last week. In a weekly time frame, Sonic Automotive stock is drawing an uptrend with rising tops and bottoms. Now trading in between its last bottom and last top, SAH might consolidate in a flat-base, waiting to break out over or down under . By mid June, SMA20w and SMA40w crossed up triggering a rise of 34.12%. Since price and SMA40w lines crossed up late April, SAH climbed $13.26 (85.27%).

SAH stock chart (weekly)

SAH stock price history

SAH IPO was on November 12th, 1997 at $4.68 per share1. Since then, SAH stock grew a 515.60%, with a yearly average of 24.60%. If you had invested $1,000 in SAH stock in 1997, it would worth $5,156.00 today.

1: Adjusted price after possible price splits or reverse-splits.

SAH stock historical price chart

SAH stock reached all-time highs on Sep/10 with a price of $32.58.

SAH stock price target is $21.80

Nobody can reliably foresee how stock prices may evolve in the future. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. For the last month we found 6 price targets for Sonic Automotive 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%
The price forecast for Sonic Automotive stock is $21.80, moving in a range between $30.00 and $14.00. 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

On February, Sonic Automotive presented its financial report, aligned with analysts' consensus and posted a $0.76 Earnings per Share. As soon as we get its actual EPS from the earnings report, we will extend this report.
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

In 2018, Sonic Automotive annual turnover stayed constant a tiny 0.86% to $9,951.63 M USD from $9,867.21 marked in 2017. Aligned with this, 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 posted $2,574.26 M in sales for 2018-Q4, a 4.19% improvement compared to previous quarter. Reported quarter earnings marked $21.82 M with a profit margin of 0.85%. Profit margin remained 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 correction 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 a stock, it's always worth to overview 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, 24.45% 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:

SAHABGANCPRTCRMT
Market cap$896.0 M$2.0 B$4.5 B$18.9 B$619.0 M
Total shares31.1 M19.4 M89.1 M229.1 M6.7 M
Float shares23.7 M17.2 M60.0 M200.5 M6.2 M
  - Institutional holdings (%)85.6%109.4%87.1%86.9%74.9%
  - Insider holdings (%)24.4%2.2%13.6%12.9%8.2%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

SAH summary

Friday, September 20th, 2019
Open$28.66
Close$28.81
Day range$28.58 - $29.35
Previous close$28.62
Session gain0.66%
Average true range$1.29
50d mov avg$27.20
100d mov avg$24.10
200d mov avg$19.50
Daily patternlb03a
Weekly pattern lt06a

Sonic Automotive performance

Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. We chose Asbury Automotive, AutoNation, Copart, America's Car-Mart, Group 1 Automotive, CarMax, Lithia Motors, Penske Automotive and Rush Enterprises as the bechmarking frame for Sonic Automotive stock.
Stock3m6m12m
SAHSonic Automotive28.39%111.06%41.43%
ABGAsbury Automotive23.46%50.89%39.70%
ANAutoNation18.79%50.46%13.79%
CPRTCopart11.69%39.38%57.06%
CRMTAmerica's Car...8.70%8.15%19.54%
GPIGroup 1 Automotiv...11.33%43.82%23.47%
KMXCarMax-1.18%37.32%8.26%
LADLithia Motors9.38%52.14%50.58%
PAGPenske Automotive-1.93%9.46%-5.82%
RUSHARush Enterprises11.02%-3.34%-5.83%

Sonic Automotive competitors

We selected a few stocks to conform a list of Sonic Automotive competitors to examine if you are interested in investing in SAH: