Morgan Stanley Boosts Sonic (SONC) Price Target to $34.00
Sonic (NASDAQ:SONC) had its price target increased by Morgan Stanley from $31.00 to $34.00 in a research note issued to investors on Thursday. They currently have an equal weight rating on the restaurant operator’s stock.
Other analysts have also recently issued research reports about the stock. ValuEngine upgraded shares of Sonic from a hold rating to a buy rating in a report on Saturday, June 16th. Zacks Investment Research upgraded shares of Sonic from a hold rating to a buy rating and set a $38.00 price target on the stock in a report on Tuesday, June 19th. Guggenheim reiterated a buy rating and issued a $38.00 price target on shares of Sonic in a report on Sunday, July 1st. BidaskClub cut shares of Sonic from a strong-buy rating to a buy rating in a report on Wednesday, July 11th. Finally, Citigroup lifted their price target on shares of Sonic from $32.00 to $41.00 and gave the company a buy rating in a report on Thursday, July 12th. One investment analyst has rated the stock with a sell rating, eight have assigned a hold rating and five have issued a buy rating to the company’s stock. Sonic currently has a consensus rating of Hold and an average target price of $34.33.
Shares of NASDAQ SONC opened at $36.78 on Thursday. The company has a current ratio of 1.78, a quick ratio of 1.78 and a debt-to-equity ratio of -2.62. Sonic has a 52 week low of $23.22 and a 52 week high of $39.75. The firm has a market capitalization of $1.36 billion, a P/E ratio of 29.42, a PEG ratio of 1.57 and a beta of 1.53.
Sonic announced that its Board of Directors has approved a share buyback plan on Thursday, June 7th that allows the company to buyback $500.00 million in outstanding shares. This buyback authorization allows the restaurant operator to reacquire up to 42.2% of its stock through open market purchases. Stock buyback plans are often an indication that the company’s management believes its stock is undervalued.
In other news, insider Christina D. Vaughan sold 2,124 shares of the business’s stock in a transaction on Tuesday, July 17th. The shares were sold at an average price of $36.00, for a total transaction of $76,464.00. Following the sale, the insider now owns 2,124 shares in the company, valued at approximately $76,464. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, VP E Edward Saroch sold 21,896 shares of the business’s stock in a transaction on Tuesday, July 17th. The shares were sold at an average price of $36.46, for a total transaction of $798,328.16. The disclosure for this sale can be found here. Insiders own 6.24% of the company’s stock.
Several hedge funds have recently made changes to their positions in SONC. Point72 Asset Management L.P. boosted its holdings in shares of Sonic by 109.0% during the 2nd quarter. Point72 Asset Management L.P. now owns 4,500 shares of the restaurant operator’s stock valued at $155,000 after buying an additional 54,500 shares in the last quarter. SG Americas Securities LLC boosted its holdings in shares of Sonic by 70.9% during the 1st quarter. SG Americas Securities LLC now owns 6,285 shares of the restaurant operator’s stock valued at $159,000 after buying an additional 2,608 shares in the last quarter. Engineers Gate Manager LP bought a new stake in shares of Sonic during the 2nd quarter valued at $210,000. Oppenheimer & Co. Inc. bought a new stake in shares of Sonic during the 2nd quarter valued at $215,000. Finally, Parametrica Management Ltd bought a new stake in shares of Sonic during the 2nd quarter valued at $221,000.
Sonic Corp. operates and franchises a chain of quick-service drive-in restaurants in the United States. As of August 31, 2017, the company operated 3,593 Sonic Drive-Ins in 45 states, of which 228 were owned and operated by the company and 3,365 were owned and operated by franchisees. The company also owns and leases 135 properties; and sublease 53 properties to franchisees and other parties.
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