Sonic (SONC) Raised to “Sell” at BidaskClub

Sonic (NASDAQ:SONC) was upgraded by analysts at BidaskClub from a “strong sell” rating to a “sell” rating in a research note issued on Thursday, February 8th.

A number of other analysts also recently commented on SONC. Oppenheimer reiterated a “hold” rating on shares of Sonic in a research report on Friday, January 5th. UBS Group reissued a “neutral” rating and issued a $28.00 price target (up from $26.00) on shares of Sonic in a report on Friday, January 5th. Cowen reissued a “neutral” rating on shares of Sonic in a report on Tuesday, October 17th. Canaccord Genuity reissued a “hold” rating and issued a $30.00 price target on shares of Sonic in a report on Friday, January 5th. Finally, Telsey Advisory Group reissued a “market perform” rating and issued a $31.00 price target (up from $27.00) on shares of Sonic in a report on Friday, January 5th. Two research 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 presently has a consensus rating of “Hold” and a consensus target price of $29.64.

Shares of Sonic (NASDAQ SONC) traded up $0.38 during mid-day trading on Thursday, hitting $24.94. The company’s stock had a trading volume of 564,800 shares, compared to its average volume of 943,063. Sonic has a one year low of $22.11 and a one year high of $30.05. The stock has a market cap of $944.53, a P/E ratio of 18.47, a P/E/G ratio of 1.09 and a beta of 1.59. The company has a quick ratio of 1.81, a current ratio of 1.81 and a debt-to-equity ratio of -2.87.

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 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 for the quarter, compared to the consensus estimate of $106.86 million. During the same period last year, the business posted $0.24 EPS. The company’s revenue was down 18.7% on a year-over-year basis. research analysts expect that Sonic will post 1.53 EPS for the current year.

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

In other Sonic news, Director Frank E. Richardson III sold 50,000 shares of the company’s stock in a transaction that occurred 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 sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Federico F. Pena sold 9,209 shares of the company’s stock in a transaction that occurred on Thursday, November 30th. The shares were sold at an average price of $25.22, for a total value of $232,250.98. The disclosure for this sale can be found here. Insiders sold 130,687 shares of company stock valued at $3,586,167 in the last three months. 6.24% of the stock is currently owned by company insiders.

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. MetLife Investment Advisors LLC acquired a new stake in Sonic during the fourth quarter valued at approximately $465,000. Gotham Asset Management LLC raised its position in shares of Sonic by 41.3% during the 4th quarter. Gotham Asset Management LLC now owns 333,412 shares of the restaurant operator’s stock worth $9,162,000 after purchasing an additional 97,489 shares during the period. Glenmede Trust Co. NA raised its position in shares of Sonic by 97.2% during the 4th quarter. Glenmede Trust Co. NA now owns 4,634 shares of the restaurant operator’s stock worth $126,000 after purchasing an additional 2,284 shares during the period. Jane Street Group LLC acquired a new stake in shares of Sonic during the 4th quarter worth approximately $830,000. Finally, Millennium Management LLC raised its position in shares of Sonic by 240.0% during the 4th quarter. Millennium Management LLC now owns 631,237 shares of the restaurant operator’s stock worth $17,346,000 after purchasing an additional 445,606 shares during the period.

ILLEGAL ACTIVITY NOTICE: This piece of content was originally published by Dispatch Tribunal and is owned by of Dispatch Tribunal. If you are accessing this piece of content on another website, it was illegally copied and republished in violation of US & international copyright & trademark laws. The original version of this piece of content can be viewed at https://www.dispatchtribunal.com/2018/02/16/sonic-sonc-upgraded-to-sell-at-bidaskclub.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