Sonic (NASDAQ:SONC)‘s stock had its “market perform” rating reissued by analysts at Telsey Advisory Group in a report released on Friday, January 5th, MarketBeat.com reports. They presently have a $31.00 price objective on the restaurant operator’s stock, up from their prior price objective of $27.00. Telsey Advisory Group’s price objective suggests a potential upside of 17.69% from the stock’s previous close.
Other research analysts also recently issued research reports about the company. Oppenheimer restated a “buy” rating and issued a $29.00 target price on shares of Sonic in a research note on Tuesday, October 17th. Zacks Investment Research upgraded Sonic from a “sell” rating to a “buy” rating and set a $26.00 target price for the company in a research note on Wednesday, September 13th. Citigroup started coverage on Sonic in a research note on Monday, September 18th. They issued a “buy” rating and a $28.00 target price for the company. Guggenheim restated a “buy” rating and issued 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 price target on Sonic from $24.00 to $25.00 and gave the company a “hold” rating in a research report on Tuesday, October 17th. Two research analysts have rated the stock with a sell rating, seven have assigned a hold rating and six have issued a buy rating to the stock. The company currently has a consensus rating of “Hold” and an average target price of $29.36.
Sonic (NASDAQ SONC) traded down $0.53 during mid-day trading on Friday, hitting $26.34. The stock had a trading volume of 854,370 shares, compared to its average volume of 978,437. The company has a debt-to-equity ratio of -2.87, a current ratio of 1.81 and a quick ratio of 1.48. The company has a market cap of $1,010.00, a P/E ratio of 18.04, a price-to-earnings-growth ratio of 1.20 and a beta of 1.73. Sonic has a 12 month low of $22.11 and a 12 month high of $30.05.
Sonic (NASDAQ:SONC) last posted its quarterly earnings results on Thursday, January 4th. The restaurant operator reported $0.30 earnings per share for the quarter, topping the 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 during the quarter, compared to the consensus estimate of $106.86 million. During the same quarter in the prior year, the company earned $0.24 EPS. The firm’s quarterly revenue was down 18.7% compared to the same quarter last year. analysts predict that Sonic will post 1.52 EPS for the current fiscal year.
Sonic declared that its Board of Directors has authorized a share buyback plan on Thursday, October 26th that permits the company to buyback $160.00 million in outstanding shares. This buyback authorization permits the restaurant operator to repurchase up to 14.9% of its shares through open market purchases. Shares buyback plans are often an indication that the company’s management believes its stock is undervalued.
In other Sonic news, Director Federico F. Pena sold 9,209 shares of Sonic stock in a transaction that occurred on Thursday, November 30th. The stock was sold at an average price of $25.22, for a total value of $232,250.98. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, Director Frank E. Richardson III sold 50,000 shares of Sonic 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 transaction, the director now directly owns 1,187,659 shares in the company, valued at $30,392,193.81. The disclosure for this sale can be found here. Over the last three months, insiders have sold 167,587 shares of company stock worth $4,537,647. 6.24% of the stock is currently owned by insiders.
Institutional investors have recently made changes to their positions in the business. Wells Fargo & Company MN increased its stake in Sonic by 28.7% in the 2nd quarter. Wells Fargo & Company MN now owns 79,892 shares of the restaurant operator’s stock worth $2,116,000 after purchasing an additional 17,822 shares during the period. Nordea Investment Management AB increased its stake in Sonic by 27.0% in the 2nd quarter. Nordea Investment Management AB now owns 67,409 shares of the restaurant operator’s stock worth $1,786,000 after purchasing an additional 14,315 shares during the period. Atlanta Capital Management Co. L L C purchased a new position in Sonic in the 3rd quarter worth approximately $7,681,000. BNP Paribas Arbitrage SA increased its stake in Sonic by 37.9% in the 2nd quarter. BNP Paribas Arbitrage SA now owns 21,140 shares of the restaurant operator’s stock worth $560,000 after purchasing an additional 5,813 shares during the period. Finally, SG Americas Securities LLC increased its stake in Sonic by 117.1% in the 3rd quarter. SG Americas Securities LLC now owns 11,418 shares of the restaurant operator’s stock worth $291,000 after purchasing an additional 6,159 shares during the period.
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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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