Sonic (SONC) Lowered 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.
SONC has been the topic of several other reports. Guggenheim reissued a “buy” rating and set a $31.00 price target (up from $29.00) on shares of Sonic in a report on Thursday, December 28th. Canaccord Genuity reissued a “hold” rating and set a $30.00 price target on shares of Sonic in a report on Friday, January 5th. UBS Group reissued a “neutral” rating and set a $28.00 price target (up from $26.00) on shares of Sonic in a report on Friday, January 5th. Oppenheimer cut Sonic from an “outperform” rating to a “market perform” rating and set a $29.00 price target on the stock. in a report on Thursday, January 4th. Finally, Telsey Advisory Group reissued a “market perform” rating and set a $31.00 price target (up from $27.00) on shares of Sonic in a report on Friday, January 5th. Two analysts have rated the stock with a sell rating, seven have issued a hold rating and six have issued a buy rating to the stock. The company has an average rating of “Hold” and a consensus price target of $29.36.
Sonic (NASDAQ SONC) traded down $0.53 during mid-day trading on Friday, reaching $26.34. The company had a trading volume of 854,300 shares, compared to its average volume of 1,488,233. The company has a market cap of $1,010.00, a PE ratio of 18.04, a PEG ratio of 1.18 and a beta of 1.73. Sonic has a fifty-two week low of $22.11 and a fifty-two week high of $30.05. The company has a debt-to-equity ratio of -2.87, a current ratio of 1.81 and a quick ratio of 1.81.
Sonic (NASDAQ:SONC) last released its quarterly earnings data on Thursday, January 4th. The restaurant operator reported $0.30 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.25 by $0.05. The business had revenue of $105.40 million for the quarter, compared to analysts’ expectations of $106.86 million. Sonic had a negative return on equity of 28.95% and a net margin of 13.68%. The firm’s quarterly revenue was down 18.7% on a year-over-year basis. During the same period in the prior year, the firm posted $0.24 EPS. analysts predict that Sonic will post 1.52 EPS for the current year.
Sonic announced that its board has approved a stock repurchase program on Thursday, October 26th that authorizes the company to repurchase $160.00 million in shares. This repurchase authorization authorizes the restaurant operator to repurchase up to 14.9% of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s board of directors believes its stock is undervalued.
In other news, Director Frank E. Richardson III sold 50,000 shares of the company’s stock in a transaction 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 document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Federico F. Pena sold 1,161 shares of the company’s stock in a transaction on Monday, October 23rd. The stock was sold at an average price of $25.20, for a total value of $29,257.20. Following the completion of the sale, the director now owns 1,187,659 shares of the company’s stock, valued at $29,929,006.80. The disclosure for this sale can be found here. Insiders sold a total of 167,587 shares of company stock valued at $4,537,647 over the last 90 days. 8.28% of the stock is currently owned by company insiders.
Several large investors have recently bought and sold shares of SONC. Riverhead Capital Management LLC increased its stake in Sonic by 77.7% in the 2nd quarter. Riverhead Capital Management LLC now owns 4,797 shares of the restaurant operator’s stock worth $127,000 after buying an additional 2,097 shares in the last quarter. Flinton Capital Management LLC increased its stake in Sonic by 74.5% in the 2nd quarter. Flinton Capital Management LLC now owns 6,290 shares of the restaurant operator’s stock worth $167,000 after buying an additional 2,686 shares in the last quarter. Bayesian Capital Management LP purchased a new stake in Sonic in the 2nd quarter worth $228,000. Wolverine Trading LLC increased its stake in Sonic by 382.4% in the 3rd quarter. Wolverine Trading LLC now owns 9,110 shares of the restaurant operator’s stock worth $232,000 after buying an additional 12,336 shares in the last quarter. Finally, Crossmark Global Holdings Inc. purchased a new stake in Sonic in the 3rd quarter worth $239,000.
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Sonic Company Profile
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.
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