Assenagon Asset Management S.A. Invests in Sonic Automotive,
July 19, 2023
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The company provides new and used vehicle sales, finance and insurance products, aftermarket products and services, and other value-added services to customers. Assenagon Asset Management S.A., a Spanish firm specializing in asset management, recently announced that it has taken up a stake in Sonic Automotive ($NYSE:SAH), Inc. shares. The investment comes as part of Assenagon’s strategy of diversifying its holdings to include a variety of investments in different markets and industries. Assenagon’s stake in Sonic Automotive is expected to be lucrative for the firm, as Sonic Automotive continues to experience growth.
The company reported a revenue increase of over 10 percent in the previous fiscal year and is well-positioned for future growth due to its strong sales and service operations. Assenagon’s investment is just another sign of confidence in Sonic Automotive’s future success.
Market Price
On Wednesday, Assenagon Asset Management S.A. made a significant investment in the automotive retail company, Sonic Automotive, Inc., by purchasing a sizeable stake in the company. This news was met with an overwhelmingly positive market reaction, as the stock opened at $51.0 and closed at $51.6, up by 2.9% from the previous closing price of 50.1. This is indicative of investors’ growing confidence in Sonic Automotive’s business model and prospects for future growth. This investment is likely to have a positive long-term impact on the company’s financial position and will further solidify its standing in the automotive retail sector. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Sonic Automotive. More…
| Total Revenues | Net Income | Net Margin |
| 13.91k | 38.9 | 1.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Sonic Automotive. More…
| Operations | Investing | Financing |
| 406.1 | -299.7 | -176.6 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Sonic Automotive. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.98k | 4.08k | 25.21 |
Key Ratios Snapshot
Some of the financial key ratios for Sonic Automotive are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.3% | 27.1% | 1.9% |
| FCF Margin | ROE | ROA |
| 1.3% | 18.3% | 3.3% |
Analysis
At GoodWhale, we recently conducted an analysis of SONIC AUTOMOTIVE‘s wellbeing. According to our Star Chart, SONIC AUTOMOTIVE is strong in asset, dividend, and medium in growth and profitability. Based on this data, we classified SONIC AUTOMOTIVE as a ‘rhino’, a type of company that has achieved moderate revenue or earnings growth. The investors that may be interested in SONIC AUTOMOTIVE are those who are looking for a company with good dividend income but moderate revenue or earnings growth. In terms of health, SONIC AUTOMOTIVE has an intermediate health score of 6/10, which means that it might be able to pay off debt and fund future operations. More…
Peers
The company operates in a highly competitive industry with several large competitors, including Asbury Automotive Group Inc, Lithia Motors Inc, Penske Automotive Group Inc. Sonic Automotive Inc has a strong market position and is well-positioned to compete effectively against its rivals.
– Asbury Automotive Group Inc ($NYSE:ABG)
Asbury Automotive Group Inc is a large publicly traded company that operates in the automotive retailing industry. The company has a market capitalization of 3.9 billion as of 2022 and a return on equity of 31.39%. Asbury Automotive Group Inc is one of the largest automotive retailers in the United States and operates over 100 dealerships across the country. The company sells and services a variety of new and used vehicles, and also provides financing and insurance products to its customers.
– Lithia Motors Inc ($NYSE:LAD)
Lithia Motors Inc is an American automotive retailer. It is the ninth largest automotive retailer in the United States and is publicly traded on the New York Stock Exchange. The company operates through three segments: Domestic, Import, and Luxury. Lithia also has a minority investment in an electric vehicle (EV) company.
Lithia’s market cap is 6.48B as of 2022. The company has a Return on Equity of 26.55%. Lithia Motors Inc is an American automotive retailer. It is the ninth largest automotive retailer in the United States and is publicly traded on the New York Stock Exchange. The company operates through three segments: Domestic, Import, and Luxury. Lithia also has a minority investment in an electric vehicle (EV) company.
– Penske Automotive Group Inc ($NYSE:PAG)
Penske Automotive Group is an American multinational automotive retailing company headquartered in Bloomfield Hills, Michigan. As of early 2021, it operated over 3,300 automotive dealerships and 250 collision repair centers in the United States and United Kingdom. Penske Automotive Group is a Fortune 500 company with revenue of $19.6 billion as of 2020. The company was founded in 1927 by Roger Penske and is currently led by CEO Jose Munoz.
Summary
Sonic Automotive, Inc., is a leading automotive retailer in the United States that offers a wide range of services. Analysts are optimistic about the company’s strong balance sheet and cash flow, as well as its solid operational performance. Sonic Automotive’s market share has grown steadily in recent years, and the company is positioned to capitalize on further growth potential.
Additionally, Sonic Automotive has been able to reduce expenses and increase margins while maintaining attractive customer service standards. The company’s strategic partnerships with manufacturers and suppliers also provide a competitive edge in the market. Analysts believe that Sonic Automotive’s long-term outlook remains favorable and the company will continue to capitalize on its strong fundamentals.
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