Sonic Corp. (NASDAQ:SONC) has been assigned a consensus recommendation of “Hold” from the seventeen research firms that are presently covering the firm, MarketBeat reports. Four analysts have rated the stock with a sell recommendation, ten have assigned a hold recommendation and three have given a buy recommendation to the company. The average 1 year price objective among analysts that have issued a report on the stock in the last year is $27.42.
A number of brokerages recently commented on SONC. Bank of America Corporation restated an “underperform” rating and issued a $28.00 target price (down from $30.00) on shares of Sonic Corp. in a research note on Sunday, June 25th. BidaskClub lowered Sonic Corp. from a “hold” rating to a “sell” rating in a research note on Sunday, July 16th. Zacks Investment Research lowered Sonic Corp. from a “hold” rating to a “sell” rating in a research note on Tuesday, July 18th. Jefferies Group LLC restated a “hold” rating and issued a $26.00 target price on shares of Sonic Corp. in a research note on Thursday, July 27th. Finally, Cowen and Company upped their target price on Sonic Corp. from $23.00 to $25.00 and gave the company a “market perform” rating in a research note on Friday, June 23rd.
In related news, Director Steven A. Davis bought 2,000 shares of Sonic Corp. stock in a transaction on Friday, July 21st. The shares were purchased at an average price of $24.62 per share, for a total transaction of $49,240.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Frank E. Richardson III sold 50,000 shares of the firm’s stock in a transaction dated Tuesday, May 16th. The stock was sold at an average price of $28.15, for a total value of $1,407,500.00. Following the transaction, the director now owns 1,202,310 shares in the company, valued at approximately $33,845,026.50. The disclosure for this sale can be found here. 6.24% of the stock is owned by company insiders.
Institutional investors have recently modified their holdings of the company. Russell Investments Group Ltd. acquired a new stake in Sonic Corp. during the fourth quarter worth approximately $1,669,000. State Street Corp raised its stake in Sonic Corp. by 0.7% in the fourth quarter. State Street Corp now owns 1,005,237 shares of the restaurant operator’s stock worth $26,650,000 after buying an additional 6,707 shares in the last quarter. Thrivent Financial for Lutherans raised its stake in Sonic Corp. by 1.6% in the fourth quarter. Thrivent Financial for Lutherans now owns 24,712 shares of the restaurant operator’s stock worth $655,000 after buying an additional 390 shares in the last quarter. Norges Bank acquired a new stake in Sonic Corp. during the fourth quarter worth approximately $30,952,000. Finally, Teachers Advisors LLC raised its stake in Sonic Corp. by 25.7% in the fourth quarter. Teachers Advisors LLC now owns 121,742 shares of the restaurant operator’s stock worth $3,227,000 after buying an additional 24,896 shares in the last quarter. Hedge funds and other institutional investors own 97.48% of the company’s stock.
Sonic Corp. (NASDAQ SONC) traded up 1.028% during trading on Monday, reaching $24.075. 226,092 shares of the company’s stock traded hands. The firm has a 50 day moving average of $25.38 and a 200 day moving average of $26.12. Sonic Corp. has a 1-year low of $21.12 and a 1-year high of $30.05. The firm has a market capitalization of $1.01 billion, a PE ratio of 16.050 and a beta of 1.74.
Sonic Corp. (NASDAQ:SONC) last posted its quarterly earnings data on Thursday, June 22nd. The restaurant operator reported $0.43 earnings per share for the quarter, beating the consensus estimate of $0.41 by $0.02. Sonic Corp. had a negative return on equity of 44.21% and a net margin of 13.23%. The company had revenue of $124 million during the quarter, compared to analysts’ expectations of $122.58 million. During the same period in the prior year, the business earned $0.43 earnings per share. Sonic Corp.’s revenue for the quarter was down 24.9% compared to the same quarter last year. Equities analysts forecast that Sonic Corp. will post $1.24 EPS for the current year.
The company also recently declared a quarterly dividend, which will be paid on Friday, August 18th. Investors of record on Wednesday, August 9th will be issued a $0.14 dividend. This represents a $0.56 annualized dividend and a yield of 2.35%. The ex-dividend date is Monday, August 7th. Sonic Corp.’s dividend payout ratio is 37.33%.
Sonic Corp. declared that its board has initiated a stock repurchase plan on Wednesday, August 9th that permits the company to repurchase $160.00 million in outstanding shares. This repurchase authorization permits the restaurant operator to reacquire up to 16.2% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s leadership believes its shares are undervalued.
Sonic Corp. 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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