Sonic Automotive Intrinsic Stock Value – BlackRock Reduces Stake in Sonic Automotive
January 31, 2023
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Sonic Automotive Intrinsic Stock Value – The company operates under several different brands, including EchoPark Automotive and Sonic Automotive ($NYSE:SAH). It is also a leader in automotive technology and innovation, as well as being one of the largest auto retailers in the country. The company had previously bought up large amounts of stock as a part of its strategic move to increase its portfolio exposure to automotive companies.
However, it appears that the recent dip in Sonic Automotive Inc.’s stock price has caused BlackRock Inc. to reconsider its investment strategy. Sonic Automotive Inc. has been affected by the current economic downturn due to the pandemic, as well as other economic factors that have caused a decrease in new car sales. Despite this drop in stock price, Sonic Automotive Inc. still remains one of the largest automotive retailers in the country and is well-positioned to take advantage of any potential recovery in the auto industry. It remains to be seen how Sonic Automotive Inc.’s stock will fare in the coming months, but investors should keep an eye on how BlackRock Inc.’s decision to reduce its stake in Sonic Automotive Inc. will affect the company’s performance going forward.
Stock Price
On Tuesday, news broke that BlackRock Inc. had reduced their stake in Sonic Automotive Inc., a retail automotive company operating in the United States. This news saw Sonic Automotive’s stock open at $48.5 and close at $48.3, a decrease of 1.1% from its previous closing price of 48.9. So far, media coverage of the news has been mostly mixed. Analysts are uncertain whether this news is a positive or negative for Sonic Automotive Inc. Some analysts see the news as a sign of BlackRock Inc.’s decreased confidence in the company and its ability to remain successful in the long-term. Others see it as a sign that BlackRock Inc. was simply looking to diversify its portfolio and make a small profit on its Sonic Automotive Inc. holdings.
Regardless, the news has caused a stir in the stock market and investors are waiting to see how it will affect Sonic Automotive Inc.’s stock price in the future. Investors are also watching closely to see if other large investors reduce their stakes in Sonic Automotive Inc., and what kind of effect that will have on the company’s stock price. As of now, investors are still uncertain as to what the long-term implications will be for Sonic Automotive Inc. 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 |
| 13.6k | 375.75 | 2.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Sonic Automotive. More…
| Operations | Investing | Financing |
| 647.2 | -1.3k | 1.12k |
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 |
| 5.02k | 3.85k | 29.8 |
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 |
| 9.8% | 28.3% | 4.4% |
| FCF Margin | ROE | ROA |
| 2.6% | 32.1% | 7.5% |
VI Analysis – Sonic Automotive Intrinsic Stock Value
Sonic Automotive is a company with strong fundamentals that reflect its long-term potential. VI app makes it easy to analyze Sonic Automotive’s performance and get an idea of its worth. According to the VI Line, Sonic Automotive’s fair value is about $56.4 per share. Sonic Automotive’s current ratio is 1.1, which is an indicator of the company’s short-term financial health. This suggests that Sonic Automotive is committed to paying out dividends to its shareholders and rewarding them for their loyalty. In conclusion, Sonic Automotive’s fundamentals show that it has strong potential in the long run and that it is currently undervalued relative to its peers. Investors should consider taking advantage of this opportunity by purchasing shares in the company while they are still trading at a discount. More…
VI Peers
The company operates in a highly competitive industry with several large competitors, including Asbury Automotive Group Inc, Lithia Motors Inc, Penske Automotive Group Inc. Sonic Automotive Inc has a strong market position and is well-positioned to compete effectively against its rivals.
– Asbury Automotive Group Inc ($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. has recently seen BlackRock Inc. reduce their stake in the company. Media coverage of the move has been mixed. For investors, this is a mixed bag. On one hand, BlackRock’s reduced stake is a sign that the company may not be performing as well as expected; however, it could also be seen as an opportunity for other investors to jump in and make a profit.
As investors consider this investment, they should consider the company’s financials, management team, competitive landscape, and overall macroeconomic environment before making a decision. Ultimately, it is up to the individual investor to decide whether or not Sonic Automotive Inc. is a good fit for their portfolio.
