Sonic (SONC) Upgraded by BidaskClub to “Hold”

BidaskClub upgraded shares of Sonic (NASDAQ:SONC) from a sell rating to a hold rating in a research note published on Saturday morning.

Several other brokerages have also commented on SONC. Bank of America reissued a buy rating and set a $30.00 price objective on shares of Sonic in a research report on Monday, August 14th. Zacks Investment Research raised Sonic from a sell rating to a buy rating and set a $26.00 price target for the company in a research report on Wednesday, September 13th. Canaccord Genuity lifted their price target on Sonic from $24.00 to $25.00 and gave the stock a hold rating in a research report on Tuesday, October 17th. Oppenheimer reaffirmed a buy rating and issued a $29.00 price target on shares of Sonic in a research report on Tuesday, October 17th. Finally, Cowen reaffirmed a neutral rating on shares of Sonic in a research report on Tuesday, October 17th. Two analysts have rated the stock with a sell rating, seven have assigned a hold rating and five have assigned a buy rating to the company’s stock. Sonic has a consensus rating of Hold and a consensus target price of $27.73.

Shares of Sonic (SONC) traded down $0.27 during trading on Friday, reaching $25.25. The company’s stock had a trading volume of 993,070 shares, compared to its average volume of 642,128. The company has a debt-to-equity ratio of -3.19, a current ratio of 1.52 and a quick ratio of 1.48. The stock has a market capitalization of $1,016.31, a price-to-earnings ratio of 19.88, a P/E/G ratio of 1.29 and a beta of 1.74. Sonic has a fifty-two week low of $22.11 and a fifty-two week high of $30.05.

Sonic (NASDAQ:SONC) last announced its quarterly earnings data on Monday, October 16th. The restaurant operator reported $0.45 EPS for the quarter, beating the consensus estimate of $0.43 by $0.02. The business had revenue of $123.60 million during the quarter, compared to analyst estimates of $126.01 million. Sonic had a negative return on equity of 33.92% and a net margin of 13.34%. The company’s revenue for the quarter was down 23.8% on a year-over-year basis. During the same quarter last year, the firm posted $0.45 earnings per share. equities analysts expect that Sonic will post 1.34 EPS for the current year.

Sonic announced that its board has approved a stock repurchase program on Wednesday, August 9th that allows the company to repurchase $160.00 million in shares. This repurchase authorization allows the restaurant operator to purchase up to 16.2% of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s board believes its shares are undervalued.

The firm also recently disclosed a quarterly dividend, which was paid on Friday, November 17th. Investors of record on Wednesday, November 8th were issued a $0.16 dividend. This represents a $0.64 annualized dividend and a yield of 2.53%. This is an increase from Sonic’s previous quarterly dividend of $0.14. The ex-dividend date was Tuesday, November 7th. Sonic’s dividend payout ratio (DPR) is presently 43.54%.

In other Sonic news, Director Frank E. Richardson III sold 50,000 shares of the business’s stock in a transaction dated Thursday, October 26th. The stock was sold at an average price of $25.59, for a total transaction of $1,279,500.00. Following the completion of the sale, the director now directly owns 1,187,659 shares in the company, valued at approximately $30,392,193.81. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Steven A. Davis purchased 2,000 shares of the business’s stock in a transaction on Wednesday, September 6th. The shares were purchased at an average price of $23.00 per share, with a total value of $46,000.00. The disclosure for this purchase can be found here. Insiders sold a total of 62,717 shares of company stock valued at $1,600,692 over the last quarter. 6.24% of the stock is owned by corporate insiders.

Several institutional investors have recently added to or reduced their stakes in SONC. Great West Life Assurance Co. Can lifted its position in shares of Sonic by 2.4% during the 2nd quarter. Great West Life Assurance Co. Can now owns 63,326 shares of the restaurant operator’s stock valued at $1,676,000 after buying an additional 1,476 shares in the last quarter. Wells Fargo & Company MN lifted its position in shares of Sonic by 28.7% during the 2nd quarter. Wells Fargo & Company MN now owns 79,892 shares of the restaurant operator’s stock valued at $2,116,000 after buying an additional 17,822 shares in the last quarter. Nordea Investment Management AB lifted its position in shares of Sonic by 27.0% during the 2nd quarter. Nordea Investment Management AB now owns 67,409 shares of the restaurant operator’s stock valued at $1,786,000 after buying an additional 14,315 shares in the last quarter. Cipher Capital LP lifted its holdings in Sonic by 885.3% in the 2nd quarter. Cipher Capital LP now owns 143,969 shares of the restaurant operator’s stock worth $3,814,000 after purchasing an additional 129,357 shares in the last quarter. Finally, Geneva Advisors LLC lifted its holdings in Sonic by 26.7% in the 2nd quarter. Geneva Advisors LLC now owns 51,159 shares of the restaurant operator’s stock worth $1,355,000 after purchasing an additional 10,767 shares in the last quarter.

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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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