Exchange Traded Concepts LLC Trims Stake in Sonic Automotive by 21.5%

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Sonic Automotive ($NYSE:SAH), Inc. is an American automotive retailer based out of Charlotte, North Carolina. The company also provides auto parts, service, and financing. This means that the company now holds a smaller number of shares of the automotive retailer than it did before. It is yet to be seen what effect this will have on Sonic Automotive’s stock price and overall performance.

Investors are keeping a close eye on any changes in Sonic Automotive’s stock prices as a result of this news. If the stock price falls, it may mean that investors are wary of investing in Sonic Automotive in the future, while a rise in share prices could indicate that investors are more confident about the company’s prospects.

Analysis

GoodWhale examined SONIC AUTOMOTIVE‘s financials and classified it as a ‘rhino’ company. This type of company is characterized by having achieved moderate revenue or earnings growth. As such, it is likely to be of interest to investors seeking steady, long-term returns. When we look at SONIC AUTOMOTIVE’s Star Chart, it is classified as strong in asset, dividend, and medium in growth, profitability. It also has an intermediate health score of 6 out of 10 with regard to its cashflows and debt, suggesting that the company might be able to pay off debt and fund future operations. In summary, SONIC AUTOMOTIVE is an attractive investment opportunity for those looking for steady, long-term returns given its moderate growth and ability to manage its cashflows and debt. More…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Sonic Automotive. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Sonic Automotive. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Sonic Automotive. More…

Key Ratios Snapshot

Some of the financial key ratios for Sonic Automotive are shown below. 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

This news has caused many investors to consider whether or not to invest in the company. Analysts are closely watching the company’s financial performance to assess if this decrease in investments is due to genuine financial problems, or just a momentary dip in the market. Investors should consider analyzing the company’s background to determine if the current market value is justified, or if it is a good opportunity to buy a potentially profitable stock. It is important to note that Sonic Automotive is a successful conglomerate with a strong history of success, and that the current dip could be an opportunity for investors.