Sonic (SONC) Cut to Market Perform at Oppenheimer

Oppenheimer downgraded shares of Sonic (NASDAQ:SONC) from an outperform rating to a market perform rating in a research note released on Thursday, January 4th. The firm currently has $29.00 price objective on the restaurant operator’s stock. Oppenheimer also issued estimates for Sonic’s Q1 2018 earnings at $0.26 EPS, Q2 2018 earnings at $0.18 EPS, Q3 2018 earnings at $0.52 EPS, Q4 2018 earnings at $0.55 EPS and FY2019 earnings at $1.68 EPS.

SONC has been the topic of several other research reports. Guggenheim reiterated a buy rating and set a $31.00 price target (up previously from $29.00) on shares of Sonic in a research note on Thursday, December 28th. UBS Group cut shares of Sonic from an outperform rating to a market perform rating in a research note on Thursday, January 4th. Zacks Investment Research cut shares of Sonic from a hold rating to a sell rating in a research note on Thursday, October 19th. BidaskClub upgraded shares of Sonic from a sell rating to a hold rating in a research note on Saturday, December 2nd. Finally, Canaccord Genuity lifted their price target on shares of Sonic from $24.00 to $25.00 and gave the company a hold rating in a report on Tuesday, October 17th. One research analyst has rated the stock with a sell rating, eight have issued a hold rating and six have given a buy rating to the company. The stock has an average rating of Hold and an average price target of $29.36.

Shares of Sonic (NASDAQ:SONC) opened at $27.19 on Thursday. The company has a debt-to-equity ratio of -2.87, a quick ratio of 1.48 and a current ratio of 1.81. Sonic has a 1-year low of $22.11 and a 1-year high of $30.05. The firm has a market cap of $1,070.00, a PE ratio of 18.62, a PEG ratio of 1.38 and a beta of 1.73.

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

Sonic announced that its board has approved a share buyback plan on Thursday, October 26th that permits the company to buyback $160.00 million in shares. This buyback authorization permits the restaurant operator to reacquire up to 14.9% of its shares through open market purchases. Shares buyback plans are usually a sign that the company’s leadership believes its stock is undervalued.

In other news, Director Frank E. Richardson III sold 3,670 shares of the stock in a transaction on Monday, December 18th. The shares were sold at an average price of $28.21, for a total value of $103,530.70. Following the sale, the director now owns 1,061,699 shares in the company, valued at $29,950,528.79. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Frank E. Richardson III sold 50,000 shares of the stock in a transaction on Wednesday, December 13th. The stock was sold at an average price of $28.40, for a total transaction of $1,420,000.00. The disclosure for this sale can be found here. Insiders have sold 167,587 shares of company stock valued at $4,537,647 in the last three months. 8.28% of the stock is currently owned by corporate insiders.

A number of institutional investors have recently added to or reduced their stakes in SONC. Wells Fargo & Company MN increased its position in shares of Sonic by 28.7% during the second quarter. Wells Fargo & Company MN now owns 79,892 shares of the restaurant operator’s stock valued at $2,116,000 after acquiring an additional 17,822 shares during the last quarter. Nordea Investment Management AB increased its position in shares of Sonic by 27.0% during the second quarter. Nordea Investment Management AB now owns 67,409 shares of the restaurant operator’s stock valued at $1,786,000 after acquiring an additional 14,315 shares during the last quarter. Atlanta Capital Management Co. L L C acquired a new stake in shares of Sonic during the third quarter valued at about $7,681,000. BNP Paribas Arbitrage SA increased its position in shares of Sonic by 37.9% during the second quarter. BNP Paribas Arbitrage SA now owns 21,140 shares of the restaurant operator’s stock valued at $560,000 after acquiring an additional 5,813 shares during the last quarter. Finally, SG Americas Securities LLC increased its position in shares of Sonic by 117.1% during the third quarter. SG Americas Securities LLC now owns 11,418 shares of the restaurant operator’s stock valued at $291,000 after acquiring an additional 6,159 shares during the last quarter.

COPYRIGHT VIOLATION NOTICE: “Sonic (SONC) Cut to Market Perform at Oppenheimer” was first reported by Dispatch Tribunal and is the property of of Dispatch Tribunal. If you are accessing this piece of content on another domain, it was stolen and republished in violation of international copyright & trademark legislation. The original version of this piece of content can be accessed at https://www.dispatchtribunal.com/2018/01/11/sonic-sonc-downgraded-by-oppenheimer-to-market-perform.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