Sonic (SONC) Stock Rating Lowered by Oppenheimer

Oppenheimer downgraded shares of Sonic (NASDAQ:SONC) from an outperform rating to a market perform rating in a report published on Thursday. Oppenheimer currently has $29.00 price target 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 a number of other reports. Guggenheim reissued a buy rating and set a $31.00 target price (up from $29.00) on shares of Sonic in a research report on Thursday, December 28th. UBS Group downgraded Sonic from an outperform rating to a market perform rating in a research report on Thursday. Zacks Investment Research downgraded Sonic from a hold rating to a sell rating in a research report on Thursday, October 19th. BidaskClub raised Sonic from a sell rating to a hold rating in a research report on Saturday, December 2nd. Finally, Canaccord Genuity lifted their price objective on Sonic from $24.00 to $25.00 and gave the company a hold rating in a report on Tuesday, October 17th. One analyst has rated the stock with a sell rating, nine have given a hold rating and five have issued a buy rating to the stock. The stock presently has a consensus rating of Hold and an average price target of $28.86.

Shares of Sonic (SONC) traded down $0.77 during trading hours on Thursday, hitting $27.26. The stock had a trading volume of 1,708,418 shares, compared to its average volume of 1,958,600. The firm has a market capitalization of $1,094.69, a P/E ratio of 18.42, a P/E/G ratio of 1.38 and a beta of 1.74. Sonic has a 12 month low of $22.11 and a 12 month high of $30.05. The company has a current ratio of 1.81, a quick ratio of 1.48 and a debt-to-equity ratio of -2.87.

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

Sonic declared that its board has authorized a stock repurchase program on Thursday, October 26th that authorizes the company to repurchase $160.00 million in shares. This repurchase authorization authorizes the restaurant operator to buy up to 14.9% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company’s board of directors believes its stock is undervalued.

In related news, Director Frank E. Richardson III sold 50,000 shares of the business’s stock in a transaction that occurred on Thursday, October 26th. The shares were 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 owns 1,187,659 shares in the company, valued at approximately $30,392,193.81. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Carolyn C. Cummins sold 2,347 shares of the company’s stock in a transaction on Thursday, November 30th. The shares were sold at an average price of $25.43, for a total transaction of $59,684.21. The disclosure for this sale can be found here. Insiders sold a total of 167,587 shares of company stock valued at $4,537,647 in the last 90 days. 8.28% of the stock is currently owned by corporate insiders.

Institutional investors have recently modified their holdings of the business. Wells Fargo & Company MN raised 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 acquiring an additional 17,822 shares during the last quarter. Nordea Investment Management AB raised 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 acquiring an additional 14,315 shares during the last quarter. Atlanta Capital Management Co. L L C bought a new stake in shares of Sonic during the 3rd quarter valued at $7,681,000. BNP Paribas Arbitrage SA raised its position in shares of Sonic by 37.9% during the 2nd 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 raised its position in shares of Sonic by 117.1% during the 3rd 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.

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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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