Ultime notizie per Sonic Automotive (NYSE:SAH) Azioni

Sonic Automotive

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 Inc

SAUDI AMERICAN HLDGS CORP by Saudi American Holdings Corp.

Saudi American Holdings Corp

Capitan Investment Ltd

SAHA-UNION PUBLIC CO by Saha-Union Public Co Ltd.

SAHAMITR PRESSURE CNTAINR by SAHAMITR PRESSURE CONTAINER PUBLIC CO LTD

Sahamitr Pressure Container PCL

Analysts at Morgan Stanley sparked a shakeup across auto stocks Wednesday as the firm moved to the sidelines on automakers and turned more positive on <a href="https://www.benzinga.com/money/best-auto-parts-stocks">dealers and parts companies</a>.
What Happened: Morgan Stanley analyst Adam Jonas downgraded Ford Motor Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>), General Motors Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GM#NYSE">GM</a>) and Rivian Automotive Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RIVN#NASDAQ">RIVN</a>) on Wednesday as he cut his overall U.S. auto industry outlook from Attractive to In Line.
Jonas&#8217; more sour view of the auto industry landscape is being driven by a combination of factors he believes may not be fully understood by the market, including climbing inventories, vehicle affordability challenges, rising credit losses and delinquencies and growth slowdowns in China.
&#8220;In addition, our previous attractive industry view was supported by our expectation of significant strategic changes such as lower capex and potential consolidation (M&amp;A/partnership) to improve capital efficiency. While there has been some modicum of progress, it has failed to meet our expectations,&#8221; the Morgan Stanley analyst said in a new note to clients.
Jonas also noted Morgan Stanley had been optimistic about automakers getting a boost for being AI enablers, but that concerns about the significant capital requirements for AI development now counter thesis.
Finally, investors are looking for an opportunity in the market driven by the <a href="https://www.benzinga.com/economics/macro-economic-events/24/09/41008403/consumer-confidence-tumbles-as-concerns-over-labor-market-grow-odds-rise-for-50-b">Federal Reserve&#8217;s rate-cutting cycle</a>, but although rate cuts can provide &#8220;temporary&#8221; relief for automakers, cuts are not likely to drive material outperformance, Jonas said.
The Morgan Stanley analyst highlighted data showing that although U.S. auto stocks have modestly outperformed on average in the six months following a rate cut, they have historically underperformed over the subsequent six-month period.
See Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/41024067/mortgage-demand-soars-as-fed-interest-rate-cut-fuels-housing-market-revival-next-sp">Mortgage Demand Soars As Fed Interest Rate Cut Fuels Housing Market Revival: &#8216;Next Spring Could See A Real Rebound&#8217;</a>
Ford Downgrade: Morgan Stanley downgraded Ford from Overweight to Equal-Weight and lowered the price target from $16 to $12.
Jonas expects Ford to suffer greater market share losses through the end of the decade. The analyst also anticipates pricing headwinds and regulatory compliance risk, which could hurt profitability. Jonas lowered his normalized earnings expectations by 15.1%. 
Morgan Stanley has a bull case price target of $19 on Ford stock and a bear case price target of $6.
GM Downgrade: Morgan Stanley downgraded GM from <a href="https://www.benzinga.com/analyst-stock-ratings">Equal-Weight to Underweight</a> and lowered the price target from&nbsp;$47&nbsp;to&nbsp;$42.
Jonas sees a lot of the same headwinds in front of GM. He specifically pointed to <a href="https://www.benzinga.com/news/24/09/40981404/us-proposes-ban-on-vehicles-equipped-with-chinese-software-as-team-biden-cracks-down-on-foreign-adve">China concerns</a> as one of the main drivers of the downgrade. GM has significant exposure to the Chinese automakers through its joint ventures, the analyst said.
&#8220;In addition, we believe investors may not appreciate the potentially adverse impact that excess capacity in China has on other highly profitable regions in the global auto market,&#8221; Jonas said.
Morgan Stanley lowered its normalized earnings estimates for GM by 16.4% but left its bull case price target of $62 and bear case price target of $28 unchanged.
Rivian Downgrade: Morgan Stanley downgraded Rivian from Overweight to Equal-Weight and lowered the price target from $16 to $13.
&#8220;The downgrade reflects our incorporation of the capital intensity of AV/ADAS which may be required to fulfill the technological underpinnings that attracted Volkswagen as a JV partner,&#8221; Jonas said. 
The Morgan Stanley analyst increased his annual capex estimates by $200 to $300 million per year beginning in 2026 as he waits for management to announce details around its joint venture cost structure. 
Morgan Stanley&#8217;s new price target of $13 consists of $10 per share in value for the automotive business and $3 per share in value for Rivian&#8217;s software and services business. The firm has a bull case price target of $29 and a bear case target of $6.
Related Link: <a href="https://www.benzinga.com/news/24/09/40985825/tesla-and-chinese-ev-startups-outpace-toyota-volkswagen-in-critical-software-race-report">Tesla And Chinese EV Startups Outpace Toyota, Volkswagen In Critical Software Race: Report</a>
Why It Matters: On the flip side, Morgan Stanley upgraded franchise dealers as the firm believes we are in the later innings of mean reversion in the franchise dealer model relative to legacy automakers who are just now going through peak earnings and are battling increased headwinds. 
&#8220;We believe that our latent concerns about the franchise dealer business model (secular DTC bear case, mean reversion thesis) have proven largely mitigated and see greater risk in other pockets of our U.S. autos coverage,&#8221; Jonas said.
Franchise dealers have proven to be pretty resilient by managing costs and focusing more on parts and services profits. Given the slower-than-expected <a href="http://benzinga.com/topic/evs">EV</a> adoption pace, these companies stand to benefit from a longer internal combustion engine parts tail and strength in hybrids, the analyst said.
Furthermore, many of the franchise dealers are more geared toward the higher-end consumer, which helps insulate the companies from a broader deterioration in auto credit relative to other areas of Morgan Stanley&#8217;s coverage.
<ul>
<li>Morgan Stanley upgraded Group 1 Automotive Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GPI#NYSE">GPI</a>) from Equal Weight to Overweight and raised the price target to $430.</li>
</ul>
<ul>
<li>Morgan Stanley upgraded Penske Automotive Group Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PAG#NYSE">PAG</a>) from Underweight to Overweight and raised the price target from $115 to $180.</li>
</ul>
<ul>
<li>Morgan Stanley upgraded AutoNation Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AN#NYSE">AN</a>) from Equal-Weight to Overweight and raised the price target from $145 to $200.</li>
</ul>
<ul>
<li>Morgan Stanley upgraded Asbury Automotive Group, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABG#NYSE">ABG</a>) from Underweight to Equal-Weight and raised the price target from $190 to $240.</li>
</ul>
<ul>
<li>Morgan Stanley upgraded Lithia Motors (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LAD#NYSE">LAD</a>) from Underweight to Equal-Weight and raised the price target from $225 to $310.</li>
</ul>
<ul>
<li>Morgan Stanley upgraded Sonic Automotive (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SAH#NYSE">SAH</a>) from Underweight to Equal-Weight and raised the price target from $40 to $58.</li>
</ul>
F, GM, RIVN Price Action: At publication time, Ford shares were down 4.46% at $10.39, GM shares were down 5.51% at $45.42 and Rivian shares were down 6.42% at $11.10, according to <a href="http://pro.benzinga.com">Benzinga Pro</a>.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/markets/equities/24/09/40973189/teslas-chinese-rival-byd-plans-to-assemble-evs-in-pakistan-after-india-said-no-we-have-big-ambit">Tesla&#8217;s Chinese Rival BYD Plans To Assemble EVs In Pakistan After India Said No: &#8216;We Have Big Ambitions&#8217;</a></li>
</ul>
Photo: Shutterstock.

Analyst Color

News

Upgrades

Downgrades

Price Target

General

RIVN

Analyst Ditches Automakers For Auto Dealers, Parts Companies

Morgan Stanley analyst Adam Jonas upgrades Sonic Automotive (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SAH#NYSE">SAH</a>) from Underweight to Equal-Weight and raises the price target from $40 to $58.

Analyst Ratings

Morgan Stanley Upgrades Sonic Automotive to Equal-Weight, Raises Price Target to $58

Stephens &amp; Co. analyst Jeff Lick initiates coverage on Sonic Automotive (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SAH#NYSE">SAH</a>) with a Equal-Weight rating and announces Price Target of $64.

Initiation

Stephens & Co. Initiates Coverage On Sonic Automotive with Equal-Weight Rating, Announces Price Target of $64

Throughout the last three months, 4 analysts have evaluated Sonic Automotive (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SAH#NYSE">SAH</a>), offering a diverse set of opinions from bullish to bearish.
In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $69.5, along with a high estimate of $75.00 and a low estimate of $63.00. Surpassing the previous average price target of $65.50, the current average has increased by 6.11%.
<img src="https://www.benzinga.com/files/images/story/2024/1725980442_0_0.png" alt="price target chart" />
<h2>Decoding Analyst Ratings: A Detailed Look</h2>
In examining recent analyst actions, we gain insights into how financial experts perceive Sonic Automotive. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Rajat Gupta</td>
<td>JP Morgan</td>
<td>Raises</td>
<td>Overweight</td>
<td>$75.00</td>
<td>$63.00</td>
</tr>
<tr>
<td>Chris Pierce</td>
<td>Needham</td>
<td>Maintains</td>
<td>Buy</td>
<td>$73.00</td>
<td>$73.00</td>
</tr>
<tr>
<td>Rajat Gupta</td>
<td>JP Morgan</td>
<td>Raises</td>
<td>Overweight</td>
<td>$63.00</td>
<td>$58.00</td>
</tr>
<tr>
<td>John Murphy</td>
<td>B of A Securities</td>
<td>Lowers</td>
<td>Buy</td>
<td>$67.00</td>
<td>$68.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Sonic Automotive. This information provides a snapshot of how analysts perceive the current state of the company.</li>
<li>Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Sonic Automotive compared to the broader market.</li>
<li>Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.</li>
</ul>
Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Sonic Automotive's market standing. Stay informed and make data-driven decisions with our Ratings Table.
<a href="https://www.benzinga.com/quote/SAH/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Sonic Automotive analyst ratings.</a>
If you are interested in following small-cap stock news and performance <a href="https://www.benzinga.com/news/small-cap">you can start by tracking it here</a>.
<h2>Get to Know Sonic Automotive Better</h2>
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.
<h3>Breaking Down Sonic Automotive's Financial Performance</h3>
Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.
Revenue Growth: Sonic Automotive's revenue growth over a period of 3 months has faced challenges. As of 30 June, 2024, the company experienced a revenue decline of approximately -5.47%. This indicates a decrease in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: Sonic Automotive's net margin is impressive, surpassing industry averages. With a net margin of 1.19%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): Sonic Automotive's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 4.46% ROE, the company effectively utilizes shareholder equity capital.
Return on Assets (ROA): Sonic Automotive's ROA stands out, surpassing industry averages. With an impressive ROA of 0.73%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: Sonic Automotive's debt-to-equity ratio is below the industry average at 4.44, reflecting a lower dependency on debt financing and a more conservative financial approach.
<h2>The Core of Analyst Ratings: What Every Investor Should Know</h2>
Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.
Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Key Takeaways From Sonic Automotive Analyst Ratings

JP Morgan analyst Rajat Gupta maintains Sonic Automotive (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SAH#NYSE">SAH</a>) with a Overweight and raises the price target from $63 to $75.

JP Morgan Maintains Overweight on Sonic Automotive, Raises Price Target to $75

In the latest quarter, 4 analysts provided ratings for Sonic Automotive (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SAH#NYSE">SAH</a>), showcasing a mix of bullish and bearish perspectives.
Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $65.25, with a high estimate of $73.00 and a low estimate of $58.00. This upward trend is apparent, with the current average reflecting a 3.57% increase from the previous average price target of $63.00.
<img src="https://www.benzinga.com/files/images/story/2024/1724155273_0.png" alt="price target chart" />
<h2>Deciphering Analyst Ratings: An In-Depth Analysis</h2>
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.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Chris Pierce</td>
<td>Needham</td>
<td>Maintains</td>
<td>Buy</td>
<td>$73.00</td>
<td>$73.00</td>
</tr>
<tr>
<td>Rajat Gupta</td>
<td>JP Morgan</td>
<td>Raises</td>
<td>Overweight</td>
<td>$63.00</td>
<td>$58.00</td>
</tr>
<tr>
<td>John Murphy</td>
<td>B of A Securities</td>
<td>Lowers</td>
<td>Buy</td>
<td>$67.00</td>
<td>$68.00</td>
</tr>
<tr>
<td>Rajat Gupta</td>
<td>JP Morgan</td>
<td>Raises</td>
<td>Neutral</td>
<td>$58.00</td>
<td>$53.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>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.</li>
<li>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.</li>
<li>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.</li>
</ul>
Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Sonic Automotive's market standing. Stay informed and make well-considered decisions with our Ratings Table.
<a href="https://www.benzinga.com/quote/SAH/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Sonic Automotive analyst ratings.</a>
<h2>Discovering Sonic Automotive: A Closer Look</h2>
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.
<h3>Sonic Automotive's Economic Impact: An Analysis</h3>
Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.
Decline in Revenue: Over the 3 months period, Sonic Automotive faced challenges, resulting in a decline of approximately -5.47% in revenue growth as of 30 June, 2024. This signifies a reduction in the company's 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 surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.19% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): Sonic Automotive's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 4.46% ROE, the company effectively utilizes shareholder equity capital.
Return on Assets (ROA): Sonic Automotive's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 0.73%, the company showcases efficient use of assets and strong financial health.
Debt Management: Sonic Automotive's debt-to-equity ratio is below the industry average at 4.44, reflecting a lower dependency on debt financing and a more conservative financial approach.
<h2>Analyst Ratings: What Are They?</h2>
Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.
Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Peeling Back The Layers: Exploring Sonic Automotive Through Analyst Insights

Needham analyst Chris Pierce reiterates Sonic Automotive (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SAH#NYSE">SAH</a>) with a Buy and maintains $73 price target.

Reiteration

Needham Reiterates Buy on Sonic Automotive, Maintains $73 Price Target

WIIM

CJET

CVNA

LOBO

PRTS

STLA

TSLA

Shares of auto and auto-related stocks are trading higher following a rise in July auto sales.

In the dynamic world of stock markets, there are only a few stories that capture investor attention like Carvana&#39;s (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cvna#NYSE">CVNA</a>). Over the past year, this used car e-retailer has witnessed a remarkable run on the bourses, with its stock surging more than 270%. This meteoric rise has not only outpaced the broader market but also left its peers &mdash; such as CarMax (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/kmx#NYSE">KMX</a>), AutoNation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/an#NYSE">AN</a>) and Sonic Automotive (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/sah#NYSE">SAH</a>) &mdash; in the dust. &nbsp;However, after such a significant rally, the question on every investor&#39;s mind is whether Carvana can sustain this momentum, or is it time to cash in on the gains?
<h3>1-Year Price Performance</h3>
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/13/74309.jpg?v=1308291440" style="height:310px; width:600px" />
Image Source: Zacks Investment Research
<h3>From the Brink of Bankruptcy to an Epic Turnaround</h3>
Carvana&#39;s journey over the past two years has been nothing short of dramatic. In 2022, the company was teetering on the edge of bankruptcy, plagued by high debt and operational inefficiencies. The situation was dire enough for many investors to write off the stock, which had plummeted to under $5 per share. However, Carvana&#39;s management executed a successful debt restructuring deal that effectively saved the company from collapse.
This restructuring was not just a financial step but part of a broader strategic shift. Carvana pivoted from an aggressive growth strategy to a focus on operational efficiency and cost-cutting. The company&#39;s three-step plan &mdash; aimed at driving positive adjusted EBITDA, achieving significant adjusted EBITDA per unit and eventually returning to growth &mdash; has been central to its revival. The results have been impressive, with Carvana&#39;s stock emerging as the top-performing auto stock of 2023 and rallying 176% so far this year.
<h3>Impressive Financial Metrics Driving the Rally</h3>
Positive Adjusted EBITDA Achievement: Carvana reached a critical milestone by achieving positive adjusted EBITDA in the second quarter of 2023. This marked a significant shift from its previous focus on rapid growth at the expense of profitability. The company&#39;s ongoing efforts to enhance operational efficiency across its business have been pivotal in this achievement. Carvana has undertaken several initiatives, including proprietary software development, logistics optimization, and the in-sourcing of third-party services, all of which have driven down costs and improved profitability.
Strong Retail Unit Growth: Despite economic headwinds such as high interest rates, Carvana has managed to grow its retail unit sales. In second quarter 2024 alone, the company increased its retail units by 33%. Looking ahead, Carvana expects this momentum to continue, forecasting a sequential increase in retail unit sales for the third quarter of 2024 and year-over-year growth for the full year. This growth is a testament to the company&#39;s ability to attract and retain customers in a competitive market.
Record Profit Margins: Carvana&#39;s focus on efficiency has also translated into record profit margins. In the second quarter of 2024, the company achieved a net income margin of 1.4% and an adjusted EBITDA margin of 10.4%, both of which are all-time records for the company. These margins reflect the success of Carvana&#39;s cost-cutting measures and the optimization of its business processes.
<img alt="Carvana" src="https://staticx-tuner.zacks.com/images/articles/charts/d6/74311.jpg?v=675995462" style="height:310px; width:600px" />
Image Source: Carvana
Improved Free Cash Flow: Carvana&#39;s ability to generate positive free cash flow is another encouraging sign for investors. In the first half of 2024, the company generated $415 million in free cash flow, slightly improving from $393 million in the same period the previous year. This positive cash flow further strengthens Carvana&#39;s financial position and provides a buffer against potential economic challenges.
<h3>The Road Ahead: Does This Rally Have Legs?</h3>
Carvana&#39;s incredible 270% surge over the past year is a testament to the company&#39;s successful turnaround and strategic execution. The shift from aggressive growth to operational efficiency has paid off, resulting in improved profitability, cash flow and a stronger financial position.
As of the second quarter of 2024, the company&#39;s total debt was $5.5 billion, down from over $6 billion at the end of 2023. While this reduction is a positive development, the debt load is still substantial. The good news for Carvana is that none of its long-term debt is due before 2028, providing the company with breathing room to continue its turnaround efforts.
CVNA&#39;s market position as the second-largest used automotive retailer in the United States, with only a 1% market share, highlights the significant growth potential ahead. The company&#39;s ability to expand its market share and tap into this potential will be critical in sustaining the stock&#39;s upward trajectory.
The Zacks Consensus Estimate for 2024 and 2025 revenues implies a year-over-year uptick of 19% each. The company is also witnessing positive earnings estimate revisions, signaling analysts&#39; confidence in the stock.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/2c/74312.jpg?v=1373390816" style="height:310px; width:600px" />
Image Source: Zacks Investment Research
From a valuation standpoint, it&#39;s trading at a forward 12-month sales multiple of 2.1, way lower than its 5-year high. The company has a Value Score of B.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/08/74313.jpg?v=1832848603" style="height:310px; width:600px" />
Image Source: Zacks Investment Research
Despite a significant recovery, Carvana&#39;s current share price is still well below its 2021 peak of $377. Since the stock is trading at a discount and given its improving fundamentals, one can accumulate more shares, as it has more room to grow.
CVNA currently carries a Zacks Rank #2 (Buy).
<a href="https://www.zacks.com/stock/news/2322192/carvana-cvna-soars-270-in-a-year-will-the-bull-run-continue?cid=CS-BENZ-FT-analyst_blog|most_popular_stocks-2322192">To read this article on Zacks.com click here.</a>

Earnings

Large Cap

Mid Cap

Small Cap

Management

Markets

Trading Ideas

Carvana Soars 270% in a Year: Will the Bull Run Continue?

Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades and downgrades, please see our<a href="https://www.benzinga.com/analyst-stock-ratings"> analyst ratings page.</a>
<ul>
<li><a href="https://www.benzinga.com/analyst-stock-ratings/analyst/590783e6290fa70001409b4a/rob-owens">Piper Sandler analyst Rob Owens</a> upgraded the rating for CrowdStrike Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRWD#NASDAQ">CRWD</a>) from Neutral to Overweight, but lowered the price target from $310 to $290. CrowdStrike shares gained 1.9% to close at $222.05 on Monday. <a href="https://www.benzinga.com/quote/CRWD/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Seaport Global analyst David Joyce upgraded Lionsgate Studios Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LION#NASDAQ">LION</a>) from Neutral to Buy and announced a price target of $12. Lionsgate Studios shares gained 1% to close at $7.12 on Monday. <a href="https://www.benzinga.com/quote/LION/analyst-ratings">See how other analysts view this stock.</a></li>
<li><a href="https://www.benzinga.com/analyst-stock-ratings/analyst/586bc4bd351b9b0001ab7363/michael-rollins">Citigroup analyst Michael Rollins</a> upgraded the rating for Lumen Technologies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LUMN#NYSE">LUMN</a>) from Sell to Neutral and raised the price target from $1.25 to $3.15. Lumen Technologies shares fell 15.6% to close at $2.59 on Monday. <a href="https://www.benzinga.com/quote/LUMN/analyst-ratings">See how other analysts view this stock.</a></li>
<li>JP Morgan analyst Rajat Gupta upgraded Sonic Automotive, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SAH#NYSE">SAH</a>) from Neutral to Overweight, while boosting the price target from $58 to $63. Sonic Automotive shares gained 3.4% to close at $57.78 on Monday. <a href="https://www.benzinga.com/quote/SAH/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Barclays analyst Charles Pitman upgraded the rating for argenx SE (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARGX#NASDAQ">ARGX</a>) from Equal-Weight to Overweight. argenx shares fell 3% to close at $484.52 on Monday. See how other analysts view this stock. <a href="https://www.benzinga.com/quote/ARGX/analyst-ratings">See how other analysts view this stock.</a></li>
</ul>
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/news/earnings/24/08/40178833/dow-records-worst-day-in-around-2-years-mag-7-stocks-lose-650b-in-market-capitalization-greed-index">Dow Records Worst Day In Around 2 Years, Mag 7 Stocks Lose $650B In Market Capitalization: Greed Index Moves To &#8216;Extreme Fear&#8217; Zone</a></li>
</ul>

Pre-Market Outlook

ARGX

CRWD

LION

LUMN

This CrowdStrike Analyst Turns Bullish; Here Are Top 5 Upgrades For Tuesday

JP Morgan analyst Rajat Gupta upgrades Sonic Automotive (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SAH#NYSE">SAH</a>) from Neutral to Overweight and raises the price target from $58 to $63.

JP Morgan Upgrades Sonic Automotive to Overweight, Raises Price Target to $63

U.S. stocks traded lower midway through trading, with the Dow Jones falling more than 950 points on Monday.
The Dow traded down 2.44% to 38,767.64 while the NASDAQ fell 3.12% to 16,252.09. The S&amp;P 500 also fell, dropping, 2.71% to 5,201.74.
Leading and Lagging Sectors Real estate shares fell by just 0.5% on Monday.
In trading on Monday, information technology shares dipped by 3.2%.
Top Headline The ISM services PMI climbed to 51.4 in July from 48.8 in April and also topping market expectations of 51.
Equities Trading UP &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<ul>
<li>Kellanova &nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/K#NYSE">K</a>) shares shot up 13% to $71.36 following a report suggesting Mars is considering an acquisition of the company.</li>
<li>Shares of Sotera Health Company (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SHC#NASDAQ">SHC</a>) got a boost, surging 10% to $14.57&nbsp;after the company reported better-than-expected quarterly financial results.</li>
<li>Sonic Automotive, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SAH#NYSE">SAH</a>) shares were also up, gaining 9% to $60.76 following better-than-expected earnings.</li>
</ul>
Equities Trading DOWN
<ul>
<li>Actinium Pharmaceuticals, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ATNM#NASDAQ">ATNM</a>) shares dropped 74% to $1.5850. On Monday, the FDA determined that Actinium Pharmaceuticals' Phase 3 SIERRA trial is not adequate to support a Biologics License Application (BLA) filing for Iomab-B despite its statistically significant primary endpoint.</li>
<li>Shares of VBI Vaccines Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VBIV#NASDAQ">VBIV</a>) were down 34% to $0.0620. VBI Vaccines was notified that its common shares will be delisted from Nasdaq effective as of opening of business on Aug. 8.</li>
<li>Concord Medical Services Holdings Limited (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CCM#NYSE">CCM</a>) was down, falling 26% to $6.56.</li>
</ul>
Commodities In commodity news, oil traded down 0.2% to $73.36 while gold traded down 0.8% at $2,449.30.
Silver traded down 3.2% to $27.49 on Monday, while copper fell 1.7% to $4.0350.
Euro zone
European shares were lower today. The eurozone's STOXX 600 fell 2.30%, Germany's DAX fell 2.01% and France's CAC 40 fell 1.63%. Spain's IBEX 35 Index fell 2.35%, while London's FTSE 100 fell 2.11%.
Asia Pacific Markets
Asian markets closed lower on Monday, with Japan's Nikkei 225 dipping 12.4%, Hong Kong's Hang Seng Index falling 1.46%, China's Shanghai Composite Index falling 1.54% and S&amp;P BSE Sensex declining 2.74%.
Economics
<ul>
<li>The ISM services PMI climbed to 51.4 in July from 48.8 in April and also topping market expectations of 51.</li>
<li>The S&amp;P Global composite PMI was revised lower to 54.3 in July versus the preliminary reading of 55.</li>
</ul>
Now Read This: <a href="https://www.benzinga.com/markets/24/08/40142776/wall-streets-most-accurate-analysts-views-on-3-materials-stocks-delivering-high-dividend-yields"> Wall Street&#8217;s Most Accurate Analysts&#8217; Views On 3 Materials Stocks Delivering High-Dividend Yields</a>

Eurozone

Commodities

Intraday Update

ATNM

VBIV

Dow Tumbles 950 Points; ISM Services PMI Surges In July

U.S. stocks were lower, with the Dow Jones index falling over 900 points on Monday.
Shares of Sotera Health Company (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SHC#NASDAQ">SHC</a>) rose sharply during Monday's session after the company reported better-than-expected <a href="https://www.benzinga.com/quote/SHC/earnings">quarterly financial results.</a>
Sotera Health shares jumped 10.2% to $14.57 on Monday.
Here are some other big stocks recording gains in today's session.
<ul>
<li>Kellanova (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/K#NYSE">K</a>) shares surged 12.6% to $71.01 in pre-market trading following a report suggesting Mars is considering an acquisition of the company.</li>
<li>Ispire Technology Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ISPR#NASDAQ">ISPR</a>) gained 11.1% to $7.50.</li>
<li>New Oriental Education &amp; Technology Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EDU#NYSE">EDU</a>) climbed 6.9% to $64.07.</li>
<li>Sonic Automotive, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SAH#NYSE">SAH</a>) gained 6.6% to $59.58 following better-than-expected earnings.</li>
<li>ZTO Express (Cayman) Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ZTO#NYSE">ZTO</a>) rose 6.4% to $19.53. ZTO Express (Cayman) will release its unaudited financial results for the second quarter, after the closing bell on Aug. 20.</li>
<li>Gaotu Techedu Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOTU#NASDAQ">GOTU</a>) jumped 6.1% to $4.2450. Citigroup analyst Mark Li maintained Gaotu Techedu with a Buy and lowered the price target from $12.34 to $5.81.</li>
<li>Twist Bioscience Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TWST#NASDAQ">TWST</a>) gained 5.2% to $45.20. Twist Bioscience and bitBiome reported a strategic collaboration and first offering to deliver one-of-a-kind enzymes for biocatalysis.</li>
</ul>
Now Read This: 
<ul>
<li><a href="https://www.benzinga.com/news/24/08/40161976/home-depot-to-rally-more-than-14-here-are-10-top-analyst-forecasts-for-monday">Home Depot To Rally More Than 14%? Here Are 10 Top Analyst Forecasts For Monday</a></li>
</ul>

Movers

New Oriental Education & Technology Group

GSX Techedu Inc. American Depositary Shares

GOTU

ISPR

TWST

Sotera Health Posts Upbeat Results, Joins Thoughtworks, Sonic Automotive And Other Big Stocks Moving Higher On Monday

Sonic Automotive, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SAH#NYSE">SAH</a>) reported a second-quarter 2024 total revenue decline of 5.5% year-over-year to $3.453 billion, <a target="_blank" href="https://www.benzinga.com/pressreleases/24/08/b40156465/sonic-automotive-reports-second-quarter-2024-financial-results" rel="noreferrer noopener">missing the consensus estimate of $3.583 billion.</a>
The company reported adjusted earnings per share of $1.47 (-20% YoY), <a href="https://www.benzinga.com/earnings">beating the street view of $1.38</a>. Franchised Dealerships segment operating results include same-store revenues declining 3% and same-store gross profit decreasing 9%.
Quarterly gross profit fell 5.2% year over year to $539.1 million, and the gross margin stood at 15.6% (flat YoY). Operating income increased 38% YoY to $107.7 million, and the margin expanded 100 bps to 3.1%.
The company&#8217;s EchoPark segment revenues of $517.3 million fell 14% year over year, with gross profit up 91% YoY to $51.1 million and Used vehicle unit sales volume of 16,641, down 3% YoY. EchoPark Segment adjusted EBITDA, which grew 123% Y/Y to $7.2 million. Excluding closed stores, adjusted EBITDA was $9 million (+149% Y/Y).
&#8220;As of today, Sonic&#8217;s access to the information systems provided by CDK has been restored, however we experienced operational disruptions throughout July related to the functionality of certain CDK customer lead applications, inventory management applications and related third-party application integrations with CDK. As a result of the business disruption caused by the CDK outage, we estimate our second quarter GAAP income before taxes was negatively impacted by approximately $30 million, or $0.64 in diluted earnings per share,&#8221; commented David Smith, Chairman and Chief Executive Officer of Sonic Automotive.
Dividend: Sonic approved a quarterly cash dividend of $0.30 per share, payable on October 15, 2024, to all stockholders of record on September 13, 2024.
&#8220;As of June 30, 2024, we had $467 million in cash and floor plan deposits on hand and approximately $885 million of total liquidity before considering unencumbered real estate,&#8221; commented Heath Byrd, Sonic Automotive&#8217;s Chief Financial Officer.
Outlook: Citing the used vehicle market&#8217;s continued improvement, the company maintained its guidance for positive quarterly EchoPark Segment adjusted EBITDA for the remainder of 2024, which is expected to help mitigate the continuing effects of margin normalization in the Franchised Dealerships <a href="https://www.benzinga.com/calendars/guidance">Segment on consolidated earnings potential.</a>
Photo via Shutterstock
Price Action: SAH shares traded lower by 2.31% at $54.60 premarket at the last check Monday.
Photo via Shutterstock

Equities

Guidance

Sonic Automotive Stuns with Q2 Earnings Beat Despite Revenue Dip and Dealership Struggles: Details

Sonic Automotive (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SAH#NYSE">SAH</a>) reported quarterly earnings of $1.47 per share which beat the analyst consensus estimate of $1.38 by 6.52 percent. This is a 19.67 percent decrease over earnings of $1.83 per share from the same period last year. The company reported quarterly sales of $3.453 billion which missed the analyst consensus estimate of $3.583 billion by 3.64 percent. This is a 5.47 percent decrease over sales of $3.653 billion the same period last year.

Earnings Beats

Earnings Misses

Sonic Automotive Q2 2024 Adj. EPS $1.47 Beats $1.38 Estimate, Sales $3.453B Miss $3.583B Estimate

4 analysts have expressed a variety of opinions on Sonic Automotive (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SAH#NYSE">SAH</a>) over the past quarter, offering a diverse set of opinions from bullish to bearish.
Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $61.5, a high estimate of $68.00, and a low estimate of $53.00. Marking an increase of 9.82%, the current average surpasses the previous average price target of $56.00. 
<img src="https://www.benzinga.com/files/images/story/2024/1721674835_0.png" alt="price target chart" />
<h2>Interpreting Analyst Ratings: A Closer Look</h2>
The perception of Sonic Automotive by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>John Murphy</td>
<td>B of A Securities</td>
<td>Lowers</td>
<td>Buy</td>
<td>$67.00</td>
<td>$68.00</td>
</tr>
<tr>
<td>Rajat Gupta</td>
<td>JP Morgan</td>
<td>Raises</td>
<td>Neutral</td>
<td>$58.00</td>
<td>$53.00</td>
</tr>
<tr>
<td>Rajat Gupta</td>
<td>JP Morgan</td>
<td>Raises</td>
<td>Underweight</td>
<td>$53.00</td>
<td>$48.00</td>
</tr>
<tr>
<td>John Murphy</td>
<td>B of A Securities</td>
<td>Raises</td>
<td>Buy</td>
<td>$68.00</td>
<td>$55.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Sonic Automotive. This information provides a snapshot of how analysts perceive the current state of the company.</li>
<li>Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Sonic Automotive compared to the broader market.</li>
<li>Price Targets: Gaining insights, analysts provide estimates for the future value of Sonic Automotive's stock. This comparison reveals trends in analysts' expectations over time.</li>
</ul>
Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Sonic Automotive's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.
<a href="https://www.benzinga.com/quote/SAH/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Sonic Automotive analyst ratings.</a>
If you are interested in following small-cap stock news and performance <a href="https://www.benzinga.com/news/small-cap">you can start by tracking it here</a>.
<h2>Get to Know Sonic Automotive Better</h2>
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.
<h3>Sonic Automotive: Financial Performance Dissected</h3>
Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.
Revenue Challenges: Sonic Automotive's revenue growth over 3 months faced difficulties. As of 31 March, 2024, the company experienced a decline of approximately -3.07%. This indicates a decrease in top-line earnings. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: Sonic Automotive's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 1.24%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): Sonic Automotive's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 4.68% ROE, the company effectively utilizes shareholder equity capital.
Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 0.78%, the company showcases effective utilization of assets.
Debt Management: Sonic Automotive's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 4.29.
<h2>Understanding the Relevance of Analyst Ratings</h2>
Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.
Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Forecasting The Future: 4 Analyst Projections For Sonic Automotive

B of A Securities analyst John Murphy maintains Sonic Automotive (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SAH#NYSE">SAH</a>) with a Buy and lowers the price target from $68 to $67.

B of A Securities Maintains Buy on Sonic Automotive, Lowers Price Target to $67

With U.S. stock futures trading lower this morning on Monday, some of the stocks that may grab investor focus today are as follows:
<ul>
<li>Wall Street expects The Greenbrier Companies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GBX#NYSE">GBX</a>) to report quarterly earnings at $1.14 per share on revenue of $928.73 million before the opening bell. Greenbrier shares gained 0.72% to $48.91 in the after-hours trading session.</li>
<li>Nature Wood Group Limited (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NWGL#NASDAQ">NWGL</a>) said Jianjun Zeng is stepping down as CEO due to health reasons. The company named Hubei Song as its new CEO. Nature Wood Group shares gained 2% to $2.03 in after-hours trading.</li>
<li>Fortress Biotech, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FBIO#NASDAQ">FBIO</a>) reported a pause in the payment of dividends on its 9.375% Series A Cumulative Redeemable Perpetual Preferred Stock. Fortress Biotech shares fell 2.8% to $1.75 in the after-hours trading session.</li>
</ul>
Check out our <a href="https://www.benzinga.com/premarket/">premarket coverage here</a>
<ul>
<li>Sonic Automotive, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SAH#NYSE">SAH</a>) disclosed a cybersecurity incident impacting its dealer management and CRM systems. Sonic Automotive shares slipped 0.3% to $52.00 in after-hours trading.</li>
<li>Unicycive Therapeutics, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UNCY#NASDAQ">UNCY</a>) filed for the resale of up to 50 million shares by the selling stockholders. Unicycive Therapeutics shares fell 2% to $0.4480 in the after-hours trading session.</li>
</ul>
Check This Out: <a href="https://www.benzinga.com/trading-ideas/long-ideas/24/07/39646821/how-to-earn-500-a-month-from-nvidia-stock">How To Earn $500 A Month From Nvidia Stock</a>
Photo courtesy: The Greenbrier Company

FBIO

NWGL

UNCY

Greenbrier, Fortress Biotech And 3 Stocks To Watch Heading Into Monday

Sonic Automotive shares are trading lower after the company reported a cybersecurity incident impacting its dealer management and CRM systems. The company said the incident is likely to adversely impact Q2 2024 earnings due to slower vehicle sales.

Sonic Automotive Reports Cybersecurity Incident Impacting Dealer Management And CRM Systems; Basic DMS Functionality Restored, Other Systems Remain Offline; Incident Likely To Adversely Impact Q2 2024 Earnings Due To Slower Vehicle Sales

<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
Sonic Automotive (NYSE:<a href="https://investorplace.com/stock-quotes/sah-stock-quote/">SAH</a>) just reported results for the second quarter of 2024.<ul><li>Sonic Automotive reported earnings per share of $1.47. This was below the analyst estimate for EPS of $1.53.</li><li>The company reported revenue of $3.45 billion.</li><li>This was 5.66% worse than the analyst estimate for revenue of $3.66 billion.</li></ul><div>InvestorPlace Earnings is a project that leverages data from <a href="https://www.tradesmith.com">TradeSmith</a> to automate coverage of quarterly earnings reports. InvestorPlace Earnings distills key takeaways including earnings per share and revenue, as well as how a company stacks up to analyst estimates. These articles are published without human intervention, allowing us to inform our readers of the latest figures as quickly as possible. To report any concerns or inaccuracies, please contact us at <a href="mailto:editor@investorplace.com">editor@investorplace.com</a>.</div><h3>More From InvestorPlace</h3>
		<ul><li>
						<a href="https://investorplace.com/2024/04/legendary-investor-predicts-forget-a-i-this-technology-is-the-future/?cid=MKT794457&amp;eid=MKT802109">Legendary Investor Predicts: &ldquo;Forget AI... THIS Technology Is the Future&rdquo;</a>
					</li>
									</ul>The post <a href="https://investorplace.com/earning-results/2024/08/sah-stock-earnings-sonic-automotive-for-q2-of-2024/">SAH Stock Earnings: Sonic Automotive Misses EPS, Misses Revenue for Q2 2024</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.

SAH Stock Earnings: Sonic Automotive Misses EPS, Misses Revenue for Q2 2024

<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
With the global markets seemingly imploding, it&rsquo;s understandable that one of the current breakout search queries is &ldquo;What stocks are up today?&rdquo; Panicked market participants will be glad to know that the fallout hasn&rsquo;t impacted every publicly traded enterprise.



At first glance, circumstances don&rsquo;t seem inviting in the slightest. Headlines are raging as red ink splashes across Wall Street and fears mount over the <a href="https://www.yahoo.com/finance/news/live/stock-market-news-today-dow-plummets-900-points-nasdaq-and-sp-500-sink-as-global-sell-off-intensifies-160159130.html">possibility of a recession</a>. The turmoil really began on Friday, when the CBOE Volatility Index &mdash; more commonly known as the VIX &mdash; screamed higher.



Referred to as the <a href="https://investorplace.com/2024/08/vix-alert-market-fear-gauge-spikes-to-highest-levels-since-2022/">fear index</a>, the indicator implies expectations of significant market movement. Though the VIX itself isn&rsquo;t a directional indicator, equities tend to accelerate faster during downcycles than upcycles. Therefore, a heightened expectation of movement in the market generally correlates with a pessimistic attitude.



In this environment, several low-volume, low market capitalization firms such as Exagen (NASDAQ:<a href="https://investorplace.com/stock-quotes/xgn-stock-quote/">XGN</a>) and Aurora Mobile (NASDAQ:<a href="https://investorplace.com/stock-quotes/jg-stock-quote/">JG</a>) have witnessed double-digit percentage growth on Monday. Both companies are <a href="https://www.investopedia.com/investing/market-capitalization-defined/#:~:text=Nano%20Cap,potential%20for%20gain%20varies%20widely.">nano caps</a>, meaning that their market caps each sit below the $50 million mark.



Still, are there high-level reputable enterprises that have also shot up on Monday? Indeed, several such organizations exist.



<h2>What Stocks Are Up Today? More Than You Think.</h2>



At the moment, the benchmark S&amp;P 500 is down 3% while the technology-centric Nasdaq Composite has shed 3.4%. So, it&rsquo;s understandable that everyone has the same question: What stocks are up today?



Let&rsquo;s start with a brand that everyone&rsquo;s familiar with, Kellanova (NYSE:<a href="https://investorplace.com/stock-quotes/k-stock-quote/">K</a>). Commonly referred to as Kellogg&rsquo;s, the multinational food manufacturing company swung up more than 15% in afternoon trading today. That comes as The Wall Street Journal reports that Mars has entered into <a href="https://www.wsj.com/business/deals/mars-in-advanced-talks-to-buy-cheez-it-maker-kellanova-44749cda">advanced talks about acquiring</a> the company.



A shocking contrarian swing also came from shares of auto dealership firm Sonic Automotive (NYSE:<a href="https://investorplace.com/stock-quotes/sah-stock-quote/">SAH</a>) today. Although an economic recession should negatively impact car sales, SAH stock bucked this expectation, gaining more than 3%. While Sonic missed its revenue target for the second quarter, it <a href="https://www.benzinga.com/news/earnings/24/08/40160578/sonic-automotive-stuns-with-q2-earnings-beat-despite-revenue-dip-and-dealership-struggles-details">beat on earnings</a>.



Perhaps appropriately, freelance marketplace Fiverr (NYSE:<a href="https://investorplace.com/stock-quotes/fvrr-stock-quote/">FVRR</a>) also saw its market value rise 3% this afternoon. Previously, FVRR stock moved upward following the firm&rsquo;s Q2 report, which saw sales expand 6% to <a href="https://www.benzinga.com/news/earnings/24/07/40075937/why-online-market-place-fiverr-stock-is-soaring-on-wednesday">$94.66 million</a>, beating out estimates. Now, Fiverr stock may be witnessing positive action due to forward-looking investors anticipating a labor market downturn.



So, all told, there are several stocks up today &mdash; and many of them feature a rational basis for upside.



On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article.&nbsp;The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com&nbsp;<a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/" target="_blank">Publishing Guidelines</a>.



On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
<div>A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.</div><h3>More From InvestorPlace</h3>
		<ul><li>
						<a href="https://investorplace.com/2024/04/legendary-investor-predicts-forget-a-i-this-technology-is-the-future/?cid=MKT794457&amp;eid=MKT802109">Legendary Investor Predicts: &ldquo;Forget AI... THIS Technology Is the Future&rdquo;</a>
					</li>
									</ul>The post <a href="https://investorplace.com/2024/08/market-mayhem-winners-what-stocks-are-up-today/">Market Mayhem Winners: What Stocks Are Up Today?</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.

Market Mayhem Winners: What Stocks Are Up Today?

Sonic Automotive, Inc. (SAH) Q2 2024 Earnings Call Transcript

Morgan Stanley analyst Adam Jonas maintained a Sell rating on Sonic Automotive (SAH – Research Report) today and set a price target of $40.00. The ...

Morgan Stanley Sticks to Their Sell Rating for Sonic Automotive (SAH)

Chris Pierce, an analyst from Needham, has initiated a new Buy rating on Sonic Automotive (SAH). Chris Pierce has given his Buy rating due to a com...

Sonic Automotive Poised for Growth with Strong Franchise Presence and Undervalued EchoPark Segment

Warning: SAH is at high risk of cutting its dividend

Dividend Champion, Contender, And Challenger Highlights: Week Of September 8

Auto dealerships enjoy diverse revenue streams and competitive moats -- analyst

Sonic Automotive: Online Presence Expansion, Inorganic Growth, Very Undervalued

Sonic Automotive's Strategic Response To Digital Car-Buying Trends

AGCO

ALRS

AMAT

ARES

AUBN

AVGO

AVNT

BPOP

CABO

CADE

CASS

CBOE

CFFI

COFS

CRAI

CSGS

CSWC

CTBI

CWEN

EBAY

EFSC

ESNT

EVBN

FDBC

FFIN

FISI

FMNB

FSFG

FVRR

GATX

GILD

GRMN

GWRS

HLNE

HOFT

HUBB

HWBK

JBSS

KFRC

KNSL

LCII

LCNB

LDOS

LSTR

MGEE

MNRO

MSFT

NBHC

NBTB

NDAQ

NDSN

NXPI

NXRT

OCSL

OLED

OTTR

PEBK

PFIS

PINE

PLOW

PNBI

PPLL

QNBC

RPRX

SAMG

SFNC

SNDR

SPGI

SSNC

SSTK

SWKS

SYBT

TROW

TRUX

TSCO

UBCP

UBSI

UFPI

ULTA

VCTR

VICI

VRSK

Press Releases

Sonic Automotive Announces Promotion of Harry Harden to Chief Human Resources Officer

Sonic Automotive Schedules Release of 2023 Fourth Quarter and Full Year Financial Results

Sonic Automotive Reports Fourth Quarter and Full Year Financial Results

Sonic Automotive Schedules Release of 2024 First Quarter Financial Results

Sonic Automotive Reports First Quarter Financial Results

Sonic Automotive Announces Retirement of Rachel Richards and Promotion of Dino Bernacchi to Chief Marketing Officer

Sonic Automotive Schedules Release of Second Quarter 2024 Financial Results

Sonic Automotive Reports Second Quarter 2024 Financial Results

CDK Extends Relationship With Sonic Automotive

Comments

Sonic Automotive

Notizie

Ultime notizie per Sonic Automotive (NYSE:SAH) Azioni

Le persone guardano anche

Notizie

PARTNER/COLLABORATORE

BENZINGA NEL MONDO