Sonic Co. (SONC) Research Coverage Started at Wells Fargo & Co
Wells Fargo & Co initiated coverage on shares of Sonic Co. (NASDAQ:SONC) in a report issued on Tuesday. The firm set a “market perform” rating and a $30.00 price target on the restaurant operator’s stock. Wells Fargo & Co’s price target indicates a potential upside of 3.56% from the company’s previous close.
Other equities research analysts have also recently issued research reports about the company. Cowen and Company lowered their target price on Sonic from $24.00 to $23.00 and set a “market perform” rating on the stock in a report on Wednesday, March 29th. Barclays PLC reduced their price target on Sonic from $26.00 to $24.00 and set an “underweight” rating on the stock in a research note on Wednesday, March 29th. Stephens raised Sonic from an “equal weight” rating to an “overweight” rating and increased their price target for the stock from $26.00 to $32.00 in a research note on Monday, April 24th. Zacks Investment Research lowered Sonic from a “hold” rating to a “sell” rating in a research note on Thursday, May 11th. Finally, Canaccord Genuity reissued a “buy” rating and set a $30.00 price target on shares of Sonic in a research note on Friday, February 24th. Two investment analysts have rated the stock with a sell rating, nine have given a hold rating and three have given a buy rating to the stock. Sonic currently has an average rating of “Hold” and a consensus target price of $27.96.
Shares of Sonic (NASDAQ:SONC) traded down 1.02% during trading on Tuesday, reaching $28.97. The company had a trading volume of 753,624 shares. Sonic has a 12 month low of $21.12 and a 12 month high of $31.20. The firm has a market capitalization of $1.23 billion, a P/E ratio of 21.02 and a beta of 1.49. The firm’s 50 day moving average price is $27.20 and its 200 day moving average price is $26.18.
Sonic (NASDAQ:SONC) last announced its earnings results on Tuesday, March 28th. The restaurant operator reported $0.15 EPS for the quarter, beating analysts’ consensus estimates of $0.14 by $0.01. The firm had revenue of $100.20 million for the quarter, compared to analysts’ expectations of $104.32 million. Sonic had a negative return on equity of 88.45% and a net margin of 10.97%. Sonic’s quarterly revenue was down 24.8% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.18 EPS. Equities analysts predict that Sonic will post $1.25 EPS for the current year.
The company also recently announced a quarterly dividend, which was paid on Friday, May 19th. Investors of record on Wednesday, May 10th were given a $0.14 dividend. This represents a $0.56 annualized dividend and a dividend yield of 1.93%. The ex-dividend date was Monday, May 8th. Sonic’s dividend payout ratio (DPR) is currently 41.79%.
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In related news, VP Carolyn C. Cummins sold 2,500 shares of the stock in a transaction on Monday, May 8th. The stock was sold at an average price of $28.39, for a total value of $70,975.00. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Frank E. Richardson III sold 50,000 shares of the stock in a transaction on Tuesday, May 16th. The shares were sold at an average price of $28.15, for a total value of $1,407,500.00. Following the completion of the sale, the director now owns 1,202,310 shares of the company’s stock, valued at $33,845,026.50. The disclosure for this sale can be found here. Company insiders own 6.24% of the company’s stock.
A number of hedge funds have recently made changes to their positions in SONC. Karp Capital Management Corp bought a new stake in shares of Sonic during the first quarter valued at about $209,000. LSV Asset Management bought a new stake in shares of Sonic during the first quarter valued at about $218,000. Quantum Capital Management bought a new stake in shares of Sonic during the fourth quarter valued at about $219,000. Pacad Investment Ltd. increased its stake in shares of Sonic by 8,200.0% in the fourth quarter. Pacad Investment Ltd. now owns 8,300 shares of the restaurant operator’s stock valued at $220,000 after buying an additional 8,200 shares in the last quarter. Finally, Invictus RG increased its stake in shares of Sonic by 1,553.2% in the first quarter. Invictus RG now owns 9,539 shares of the restaurant operator’s stock valued at $242,000 after buying an additional 8,962 shares in the last quarter. Hedge funds and other institutional investors own 96.33% of the company’s stock.
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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