7 analysts have expressed a variety of opinions on Sonic Automotive SAH over the past quarter, offering a diverse set of opinions from bullish to bearish.
The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 3 | 2 | 2 | 0 | 0 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 1 | 0 | 1 | 0 | 0 |
| 2M Ago | 0 | 1 | 1 | 0 | 0 |
| 3M Ago | 1 | 1 | 0 | 0 | 0 |
The 12-month price targets, analyzed by analysts, offer insights with an average target of $67.57, a high estimate of $75.00, and a low estimate of $58.00. Marking an increase of 8.41%, the current average surpasses the previous average price target of $62.33.
Deciphering Analyst Ratings: An In-Depth Analysis
An in-depth analysis of recent analyst actions unveils how financial experts perceive Sonic Automotive. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Chris Pierce | Needham | Raises | Buy | $74.00 | $73.00 |
| John Murphy | B of A Securities | Lowers | Buy | $66.00 | $67.00 |
| Adam Jonas | Morgan Stanley | Raises | Equal-Weight | $58.00 | $40.00 |
| Jeff Lick | Stephens & Co. | Announces | Equal-Weight | $64.00 | - |
| Rajat Gupta | JP Morgan | Raises | Overweight | $75.00 | $63.00 |
| Chris Pierce | Needham | Maintains | Buy | $73.00 | $73.00 |
| Rajat Gupta | JP Morgan | Raises | Overweight | $63.00 | $58.00 |
Key Insights:
- Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Sonic Automotive. This insight gives a snapshot of analysts' perspectives on the current state of the company.
- Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Sonic Automotive compared to the broader market.
- Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Sonic Automotive's stock. This comparison reveals trends in analysts' expectations over time.
To gain a panoramic view of Sonic Automotive's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.
Stay up to date on Sonic Automotive analyst ratings.
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Delving into Sonic Automotive's Background
Sonic Automotive is one of the largest auto dealership groups in the United States. The company has 108 franchised stores in 18 states, primarily in metropolitan areas in California, Texas, and the Southeast, plus 25 EchoPark used-vehicle stores, 16 collision centers, and 13 powersports locations. The franchise stores derive revenue from new and used vehicles plus parts and collision repair, finance, insurance, and wholesale auctions. Luxury and import dealerships make up about 86% of franchise new-vehicle revenue, while Honda, BMW, Mercedes, and Toyota constitute about 58% of new-vehicle revenue. BMW is the largest brand at about 25%. 2023's revenue was $14.4 billion, with EchoPark's portion totaling $2.4 billion. Sonic bought RFJ Auto in December 2021, which added $3.2 billion in sales.
Sonic Automotive: Delving into Financials
Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.
Negative Revenue Trend: Examining Sonic Automotive's financials over 3 months reveals challenges. As of 30 June, 2024, the company experienced a decline of approximately -5.47% in revenue growth, reflecting a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Discretionary sector.
Net Margin: Sonic Automotive's net margin excels beyond industry benchmarks, reaching 1.19%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 4.46%, the company showcases effective utilization of equity capital.
Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 0.73%, the company showcases effective utilization of assets.
Debt Management: Sonic Automotive's debt-to-equity ratio is below the industry average. With a ratio of 4.44, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
What Are Analyst Ratings?
Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.
Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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