Sonic Automotive Rises Most Amid Gains for Car-Dealer Stocksby
Sonic Automotive Inc. rose the most in almost two months as stocks of several U.S. auto-dealership companies climbed.
Sonic gained 4 percent, its biggest increase since July 8, to $17.82. The increase narrowed the loss for the year for the Charlotte, North Carolina-based company’s stock to 22 percent.
Less than a week after automakers reported disappointing U.S. light-vehicle sales for August, other dealer-group shares also rose. AutoNation Inc., the country’s largest seller of new cars, gained 2.1 percent to $49.06 and Penske Automotive Group Inc. was up 1.7 percent to $47.69, its highest closing price in almost 10 months.
Sonic, which gets about 25 percent of its revenue from used vehicles, may benefit because prices of those vehicles are seen as poised to fall, wooing more shoppers away from new vehicles. Full-year U.S. sales of new cars and light trucks are at risk of falling for the first time in seven years.