Sonic Automotive Stock Probability of Future Stock Price Finishing Over 64.68
| SAH Stock | USD 59.24 1.07 1.84% |
Closest to current price Sonic long CALL Option Payoff at Expiration
Sonic |
Sonic Automotive Target Price Odds to finish over 64.68
The tendency of Sonic Stock price to converge on an average value over time is a known aspect in finance that investors have used since the beginning of the stock market for forecasting. However, many studies suggest that some traded equity instruments are consistently mispriced before traders' demand and supply correct the spread. One possible conclusion to this anomaly is that these stocks have additional risk, for which investors demand compensation in the form of extra returns.
| Current Price | Horizon | Target Price | Odds to move over $ 64.68 or more in 90 days |
| 59.24 | 90 days | 64.68 | near 1 |
Based on a normal probability distribution, the odds of Sonic Automotive to move over $ 64.68 or more in 90 days from now is near 1 (This Sonic Automotive probability density function shows the probability of Sonic Stock to fall within a particular range of prices over 90 days) . Probability of Sonic Automotive price to stay between its current price of $ 59.24 and $ 64.68 at the end of the 90-day period is nearly 4.32 .
Considering the 90-day investment horizon the stock has the beta coefficient of 1.53 . This usually implies as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Sonic Automotive will likely underperform. Additionally Sonic Automotive has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the NYSE Composite. Sonic Automotive Price Density |
| Price |
Predictive Modules for Sonic Automotive
There are currently many different techniques concerning forecasting the market as a whole, as well as predicting future values of individual securities such as Sonic Automotive. Regardless of method or technology, however, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Sonic Automotive's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Sonic Automotive Risk Indicators
For the most part, the last 10-20 years have been a very volatile time for the stock market. Sonic Automotive is not an exception. The market had few large corrections towards the Sonic Automotive's value, including both sudden drops in prices as well as massive rallies. These swings have made and broken many portfolios. An investor can limit the violent swings in their portfolio by implementing a hedging strategy designed to limit downside losses. If you hold Sonic Automotive, one way to have your portfolio be protected is to always look up for changing volatility and market elasticity of Sonic Automotive within the framework of very fundamental risk indicators.α | Alpha over NYSE Composite | -0.03 | |
β | Beta against NYSE Composite | 1.53 | |
σ | Overall volatility | 3.25 | |
Ir | Information ratio | 0 |
Sonic Automotive Alerts and Suggestions
In today's market, stock alerts give investors the competitive edge they need to time the market and increase returns. Checking the ongoing alerts of Sonic Automotive for significant developments is a great way to find new opportunities for your next move. Suggestions and notifications for Sonic Automotive can help investors quickly react to important events or material changes in technical or fundamental conditions and significant headlines that can affect investment decisions.| Sonic Automotive is unlikely to experience financial distress in the next 2 years | |
| Sonic Automotive has about 229.2 M in cash with (52.9 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 4.68. | |
| Roughly 74.0% of the company shares are owned by institutional investors | |
| On 15th of April 2024 Sonic Automotive paid $ 0.3 per share dividend to its current shareholders | |
| Latest headline from investing.com: Disposition of 41770 shares by David Smith of Sonic Automotive at 16.76 subject to Rule 16b-3 |
Sonic Automotive Price Density Drivers
Market volatility will typically increase when nervous long traders begin to feel the short-sellers pressure to drive the market lower. The future price of Sonic Stock often depends not only on the future outlook of the current and potential Sonic Automotive's investors but also on the ongoing dynamics between investors with different trading styles. Because the market risk indicators may have small false signals, it is better to identify suitable times to hedge a portfolio using different long/short signals. Sonic Automotive's indicators that are reflective of the short sentiment are summarized in the table below.
| Common Stock Shares Outstanding | 35.9 M | |
| Cash And Short Term Investments | 28.9 M |
Sonic Automotive Technical Analysis
Sonic Automotive's future price can be derived by breaking down and analyzing its technical indicators over time. Sonic Stock technical analysis helps investors analyze different prices and returns patterns as well as diagnose historical swings to determine the real value of Sonic Automotive. In general, you should focus on analyzing Sonic Stock price patterns and their correlations with different microeconomic environments and drivers.
Sonic Automotive Predictive Forecast Models
Sonic Automotive's time-series forecasting models is one of many Sonic Automotive's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models are widely used for non-stationary data. Non-stationary data are called the data whose statistical properties, e.g., the mean and standard deviation, are not constant over time, but instead, these metrics vary over time. This non-stationary Sonic Automotive's historical data is usually called time series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the stock market movement and maximize returns from investment trading.
Things to note about Sonic Automotive
Checking the ongoing alerts about Sonic Automotive for important developments is a great way to find new opportunities for your next move. Our stock alerts and notifications screener for Sonic Automotive help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.
| Sonic Automotive is unlikely to experience financial distress in the next 2 years | |
| Sonic Automotive has about 229.2 M in cash with (52.9 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 4.68. | |
| Roughly 74.0% of the company shares are owned by institutional investors | |
| On 15th of April 2024 Sonic Automotive paid $ 0.3 per share dividend to its current shareholders | |
| Latest headline from investing.com: Disposition of 41770 shares by David Smith of Sonic Automotive at 16.76 subject to Rule 16b-3 |
Check out Sonic Automotive Backtesting, Sonic Automotive Valuation, Sonic Automotive Correlation, Sonic Automotive Hype Analysis, Sonic Automotive Volatility, Sonic Automotive History as well as Sonic Automotive Performance. For more detail on how to invest in Sonic Stock please use our How to Invest in Sonic Automotive guide.Note that the Sonic Automotive information on this page should be used as a complementary analysis to other Sonic Automotive's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Complementary Tools for Sonic Stock analysis
When running Sonic Automotive's price analysis, check to measure Sonic Automotive's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Sonic Automotive is operating at the current time. Most of Sonic Automotive's value examination focuses on studying past and present price action to predict the probability of Sonic Automotive's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Sonic Automotive's price. Additionally, you may evaluate how the addition of Sonic Automotive to your portfolios can decrease your overall portfolio volatility.
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Is Sonic Automotive's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Sonic Automotive. If investors know Sonic will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Sonic Automotive listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.07) | Dividend Share 1.18 | Earnings Share 4.88 | Revenue Per Share 413.185 | Quarterly Revenue Growth (0.03) |
The market value of Sonic Automotive is measured differently than its book value, which is the value of Sonic that is recorded on the company's balance sheet. Investors also form their own opinion of Sonic Automotive's value that differs from its market value or its book value, called intrinsic value, which is Sonic Automotive's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Sonic Automotive's market value can be influenced by many factors that don't directly affect Sonic Automotive's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Sonic Automotive's value and its price as these two are different measures arrived at by different means. Investors typically determine if Sonic Automotive is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Sonic Automotive's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.