Sonic (SONC) Earns Hold Rating from Canaccord Genuity

Sonic (NASDAQ:SONC)‘s stock had its “hold” rating reaffirmed by equities researchers at Canaccord Genuity in a research report issued on Friday. They presently have a $30.00 target price on the restaurant operator’s stock. Canaccord Genuity’s target price would suggest a potential upside of 7.03% from the stock’s current price.

Several other equities research analysts have also recently issued reports on the stock. Oppenheimer restated a “hold” rating on shares of Sonic in a report on Friday. UBS Group restated a “neutral” rating and issued a $28.00 target price (up previously from $26.00) on shares of Sonic in a report on Friday. Telsey Advisory Group raised their target price on shares of Sonic from $27.00 to $31.00 and gave the stock a “market perform” rating in a report on Friday. Guggenheim restated a “buy” rating and issued a $31.00 target price (up previously from $29.00) on shares of Sonic in a report on Thursday, December 28th. Finally, BidaskClub upgraded shares of Sonic from a “sell” rating to a “hold” rating in a report on Saturday, December 2nd. One research analyst has rated the stock with a sell rating, nine have given a hold rating and five have assigned a buy rating to the company. The stock presently has a consensus rating of “Hold” and an average price target of $28.86.

Sonic (NASDAQ:SONC) traded up $0.46 during trading hours on Friday, hitting $28.03. 4,450,352 shares of the stock were exchanged, compared to its average volume of 2,020,425. Sonic has a 1 year low of $22.11 and a 1 year high of $30.05. The company has a current ratio of 1.52, a quick ratio of 1.48 and a debt-to-equity ratio of -3.19. The stock has a market capitalization of $1,090.00, a PE ratio of 19.20, a price-to-earnings-growth ratio of 1.41 and a beta of 1.73.

Sonic (NASDAQ:SONC) last issued its earnings results on Thursday, January 4th. The restaurant operator reported $0.30 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.25 by $0.05. Sonic had a net margin of 13.34% and a negative return on equity of 33.92%. The company had revenue of $105.40 million for the quarter, compared to analysts’ expectations of $106.86 million. During the same quarter last year, the company posted $0.24 earnings per share. The firm’s quarterly revenue was down 18.7% on a year-over-year basis. sell-side analysts forecast that Sonic will post 1.34 EPS for the current year.

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

In other news, Director Federico F. Pena sold 1,161 shares of Sonic stock in a transaction on Monday, October 23rd. The shares were sold at an average price of $25.20, for a total transaction of $29,257.20. Following the transaction, the director now owns 1,187,659 shares in the company, valued at approximately $29,929,006.80. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP Carolyn C. Cummins sold 1,200 shares of Sonic stock in a transaction on Tuesday, December 5th. The stock was sold at an average price of $27.02, for a total transaction of $32,424.00. The disclosure for this sale can be found here. Insiders have sold a total of 167,587 shares of company stock worth $4,537,647 in the last quarter. Corporate insiders own 6.24% of the company’s stock.

Several institutional investors have recently modified their holdings of the company. Victory Capital Management Inc. boosted its stake in shares of Sonic by 8.1% during the 2nd quarter. Victory Capital Management Inc. now owns 18,464 shares of the restaurant operator’s stock worth $489,000 after acquiring an additional 1,380 shares during the last quarter. Riverhead Capital Management LLC boosted its stake in shares of Sonic by 77.7% during the 2nd quarter. Riverhead Capital Management LLC now owns 4,797 shares of the restaurant operator’s stock worth $127,000 after acquiring an additional 2,097 shares during the last quarter. California Public Employees Retirement System raised its position in shares of Sonic by 2.0% during the 2nd quarter. California Public Employees Retirement System now owns 111,900 shares of the restaurant operator’s stock valued at $2,964,000 after purchasing an additional 2,200 shares during the period. Flinton Capital Management LLC raised its position in shares of Sonic by 74.5% during the 2nd quarter. Flinton Capital Management LLC now owns 6,290 shares of the restaurant operator’s stock valued at $167,000 after purchasing an additional 2,686 shares during the period. Finally, TD Asset Management Inc. raised its position in shares of Sonic by 3.6% during the 3rd quarter. TD Asset Management Inc. now owns 92,761 shares of the restaurant operator’s stock valued at $2,361,000 after purchasing an additional 3,200 shares during the period.

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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.

Analyst Recommendations for Sonic (NASDAQ:SONC)

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