SAH stock: buy or sell?
September 20th, 2019
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.
|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 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.
|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
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.
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 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 $21.80Nobody 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:
|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 ShareOn 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.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsIn 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.
|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 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%.
|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 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:
|Market cap||$896.0 M||$2.0 B||$4.5 B||$18.9 B||$619.0 M|
|Total shares||31.1 M||19.4 M||89.1 M||229.1 M||6.7 M|
|Float shares||23.7 M||17.2 M||60.0 M||200.5 M||6.2 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 selling||0.0%||0.0%||0.0%||0.0%||0.0%|
|Friday, September 20th, 2019|
|Day range||$28.58 - $29.35|
|Average true range||$1.29|
|50d mov avg||$27.20|
|100d mov avg||$24.10|
|200d mov avg||$19.50|
Sonic Automotive performancePerformance 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.
|GPIGroup 1 Automotiv...||11.33%||43.82%||23.47%|