Sonic (SONC) Cut to Sell at BidaskClub

Sonic (NASDAQ:SONC) was downgraded by analysts at BidaskClub from a “hold” rating to a “sell” rating in a report issued on Saturday.

Several other equities analysts have also recently weighed in on the company. Zacks Investment Research raised Sonic from a “sell” rating to a “hold” rating in a research note on Thursday, October 26th. Citigroup initiated coverage on Sonic in a research note on Monday, September 18th. They set a “buy” rating and a $28.00 target price on the stock. Oppenheimer reaffirmed a “buy” rating and set a $29.00 target price on shares of Sonic in a research note on Friday, October 6th. Guggenheim reaffirmed a “buy” rating and set a $31.00 target price (up previously from $29.00) on shares of Sonic in a research note on Thursday, December 28th. Finally, Canaccord Genuity lifted their target price on Sonic from $24.00 to $25.00 and gave the company a “hold” rating in a research note on Tuesday, October 17th. Two analysts have rated the stock with a sell rating, seven have assigned a hold rating and six have assigned a buy rating to the company. The company has a consensus rating of “Hold” and a consensus target price of $29.36.

Shares of Sonic (SONC) opened at $26.34 on Friday. The company has a debt-to-equity ratio of -2.87, a quick ratio of 1.48 and a current ratio of 1.81. The stock has a market capitalization of $1,010.00, a PE ratio of 18.04, a price-to-earnings-growth ratio of 1.38 and a beta of 1.73. Sonic has a twelve month low of $22.11 and a twelve month high of $30.05.

Sonic (NASDAQ:SONC) last released its earnings results on Thursday, January 4th. The restaurant operator reported $0.30 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.25 by $0.05. Sonic had a negative return on equity of 28.95% and a net margin of 13.68%. The company had revenue of $105.40 million for the quarter, compared to analysts’ expectations of $106.86 million. During the same quarter in the previous year, the business posted $0.24 EPS. The business’s revenue for the quarter was down 18.7% on a year-over-year basis. equities analysts expect that Sonic will post 1.39 earnings per share for the current year.

Sonic announced that its board has authorized a stock buyback program on Thursday, October 26th that authorizes the company to repurchase $160.00 million in shares. This repurchase authorization authorizes the restaurant operator to purchase up to 14.9% of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s board believes its shares are undervalued.

In related news, Director Frank E. Richardson III sold 50,000 shares of the business’s stock in a transaction that occurred on Thursday, October 26th. The stock was sold at an average price of $25.59, for a total value of $1,279,500.00. Following the completion of the sale, the director now directly owns 1,187,659 shares in the company, valued at approximately $30,392,193.81. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Frank E. Richardson III sold 3,670 shares of the business’s stock in a transaction that occurred on Monday, December 18th. The stock was sold at an average price of $28.21, for a total value of $103,530.70. Following the completion of the sale, the director now owns 1,061,699 shares of the company’s stock, valued at $29,950,528.79. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 167,587 shares of company stock valued at $4,537,647. Corporate insiders own 8.28% of the company’s stock.

Several hedge funds have recently modified their holdings of the company. Vanguard Group Inc. lifted its holdings in shares of Sonic by 1.2% during the second quarter. Vanguard Group Inc. now owns 3,596,500 shares of the restaurant operator’s stock worth $95,272,000 after buying an additional 43,146 shares during the last quarter. Dimensional Fund Advisors LP lifted its holdings in shares of Sonic by 0.8% during the third quarter. Dimensional Fund Advisors LP now owns 1,962,894 shares of the restaurant operator’s stock worth $49,955,000 after buying an additional 15,963 shares during the last quarter. Macquarie Group Ltd. lifted its holdings in shares of Sonic by 25.4% during the third quarter. Macquarie Group Ltd. now owns 1,462,539 shares of the restaurant operator’s stock worth $37,222,000 after buying an additional 296,665 shares during the last quarter. Westfield Capital Management Co. LP lifted its holdings in shares of Sonic by 5.2% during the third quarter. Westfield Capital Management Co. LP now owns 1,110,995 shares of the restaurant operator’s stock worth $28,275,000 after buying an additional 54,605 shares during the last quarter. Finally, State Street Corp lifted its holdings in shares of Sonic by 2.0% during the second quarter. State Street Corp now owns 1,083,561 shares of the restaurant operator’s stock worth $28,707,000 after buying an additional 21,420 shares during the last quarter.

ILLEGAL ACTIVITY WARNING: “Sonic (SONC) Cut to Sell at BidaskClub” was originally reported by Week Herald and is the sole property of of Week Herald. If you are accessing this piece of content on another website, it was illegally copied and republished in violation of United States & international copyright and trademark legislation. The original version of this piece of content can be read at https://weekherald.com/2018/01/13/sonic-sonc-cut-to-sell-at-bidaskclub.html.

About Sonic

Sonic Corp. operates and franchises the chain of drive-thru restaurants (Sonic Drive-Ins) in the United States. As of August 31, 2016, 3,557 Sonic Drive-Ins were in operation from coast to coast in 45 states, consisting of 345 Company drive-thrus and 3,212 franchise drive-thrus. As of August 31, 2016, its restaurant design and construction consisted of a kitchen housed in a one-story building, which was approximately 1,500 square feet, flanked by canopy-covered rows of 16 to 24 parking spaces, with each space having its own payment terminal, intercom speaker system and menu board.

Analyst Recommendations for Sonic (NASDAQ:SONC)

Receive News & Ratings for Sonic Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Sonic and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply