Sonic Co. (NASDAQ:SONC) – Equities research analysts at William Blair decreased their FY2019 earnings per share estimates for shares of Sonic in a research report issued to clients and investors on Wednesday, according to Zacks Investment Research. William Blair analyst S. Zackfia now forecasts that the restaurant operator will earn $1.52 per share for the year, down from their prior estimate of $1.53.
A number of other analysts have also recently weighed in on the stock. Zacks Investment Research raised shares of Sonic from a “sell” rating to a “hold” rating in a research note on Thursday, October 26th. Citigroup assumed coverage on shares of Sonic in a report on Monday, September 18th. They set a “buy” rating and a $28.00 price target on the stock. Oppenheimer reiterated a “buy” rating and set a $29.00 price target on shares of Sonic in a report on Friday, October 6th. Guggenheim reiterated a “buy” rating and set a $31.00 price target (up previously from $29.00) on shares of Sonic in a report on Thursday, December 28th. Finally, Canaccord Genuity boosted their target price on shares of Sonic from $24.00 to $25.00 and gave the company a “hold” rating in a report on Tuesday, October 17th. Two investment analysts have rated the stock with a sell rating, seven have issued a hold rating and six have assigned a buy rating to the company’s stock. Sonic currently has an average rating of “Hold” and an average price target of $29.36.
Shares of Sonic (SONC) opened at $26.34 on Friday. The firm has a market cap of $1,012.98, a price-to-earnings ratio of 17.80, a price-to-earnings-growth ratio of 1.18 and a beta of 1.74. Sonic has a one year low of $22.11 and a one year high of $30.05. 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 (NASDAQ:SONC) last announced its quarterly earnings data on Thursday, January 4th. The restaurant operator reported $0.30 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates 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 net margin of 13.68% and a negative return on equity of 28.95%. The firm’s quarterly revenue was down 18.7% compared to the same quarter last year. During the same period last year, the firm posted $0.24 earnings per share.
A number of hedge funds have recently modified their holdings of the business. Aperio Group LLC grew its position in Sonic by 1.4% in the 2nd quarter. Aperio Group LLC now owns 8,348 shares of the restaurant operator’s stock worth $221,000 after purchasing an additional 119 shares in the last quarter. Victory Capital Management Inc. grew its position in Sonic by 8.1% in the 2nd quarter. Victory Capital Management Inc. now owns 18,464 shares of the restaurant operator’s stock worth $489,000 after purchasing an additional 1,380 shares in the last quarter. Great West Life Assurance Co. Can grew its position in Sonic by 2.4% in the 2nd quarter. Great West Life Assurance Co. Can now owns 63,326 shares of the restaurant operator’s stock worth $1,676,000 after purchasing an additional 1,476 shares in the last quarter. Riverhead Capital Management LLC grew its position 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 purchasing an additional 2,097 shares in the last quarter. Finally, California Public Employees Retirement System grew its position in Sonic by 2.0% in the 2nd quarter. California Public Employees Retirement System now owns 111,900 shares of the restaurant operator’s stock worth $2,964,000 after purchasing an additional 2,200 shares in the last quarter.
In other news, Director Frank E. Richardson III sold 3,670 shares of the business’s stock in a transaction dated Monday, December 18th. The shares were sold at an average price of $28.21, for a total transaction of $103,530.70. Following the completion of the sale, the director now directly owns 1,061,699 shares of the company’s stock, valued at $29,950,528.79. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Federico F. Pena sold 1,161 shares of the business’s stock in a transaction dated Monday, October 23rd. The stock was sold at an average price of $25.20, for a total transaction of $29,257.20. Following the sale, the director now directly 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. Over the last three months, insiders have sold 167,587 shares of company stock valued at $4,537,647. 6.24% of the stock is currently owned by insiders.
Sonic announced that its Board of Directors has initiated a share buyback program on Thursday, October 26th that permits the company to repurchase $160.00 million in shares. This repurchase authorization permits the restaurant operator to purchase up to 14.9% of its shares through open market purchases. Shares repurchase programs are often a sign that the company’s board believes its stock is undervalued.
The firm also recently announced a quarterly dividend, which will be paid on Friday, February 16th. Stockholders of record on Wednesday, February 7th will be given a dividend of $0.16 per share. This represents a $0.64 annualized dividend and a dividend yield of 2.43%. Sonic’s payout ratio is presently 43.24%.
ILLEGAL ACTIVITY NOTICE: “Equities Analysts Offer Predictions for Sonic Co.’s FY2019 Earnings (SONC)” was posted by Dispatch Tribunal and is owned by of Dispatch Tribunal. If you are reading this news story on another site, it was stolen and reposted in violation of US and international copyright and trademark laws. The original version of this news story can be viewed at https://www.dispatchtribunal.com/2018/01/14/william-blair-weighs-in-on-sonic-corp-s-fy2019-earnings-sonc.html.
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.
Get a free copy of the Zacks research report on Sonic (SONC)
For more information about research offerings from Zacks Investment Research, visit Zacks.com
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.