Sonic (NASDAQ:SONC) was downgraded by analysts at BidaskClub from a “hold” rating to a “sell” rating in a research note issued to investors on Saturday.

A number of other equities analysts have also recently issued reports on the company. Zacks Investment Research upgraded Sonic from a “hold” rating to a “buy” rating and set a $31.00 target price on the stock in a report on Wednesday. Cowen restated a “hold” rating and issued a $29.00 target price on shares of Sonic in a report on Tuesday. Canaccord Genuity restated a “hold” rating and issued a $30.00 target price on shares of Sonic in a report on Friday, January 5th. Oppenheimer restated a “hold” rating on shares of Sonic in a report on Friday, January 5th. Finally, UBS Group restated a “neutral” rating and issued a $28.00 target price (up from $26.00) on shares of Sonic in a report on Friday, January 5th. Two investment analysts have rated the stock with a sell rating, seven have assigned a hold rating and six have assigned a buy rating to the company’s stock. The company has a consensus rating of “Hold” and a consensus target price of $29.36.

Shares of Sonic (NASDAQ SONC) traded down $0.53 during midday trading on Friday, hitting $26.34. The company had a trading volume of 854,370 shares, compared to its average volume of 978,437. The company has a quick ratio of 1.48, a current ratio of 1.81 and a debt-to-equity ratio of -2.87. The firm has a market cap of $1,010.00, a PE ratio of 18.04, a price-to-earnings-growth ratio of 1.20 and a beta of 1.73. Sonic has a twelve month low of $22.11 and a twelve month high of $30.05.

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 Zacks’ consensus estimate of $0.25 by $0.05. The business had revenue of $105.40 million for the quarter, compared to analysts’ expectations of $106.86 million. Sonic had a negative return on equity of 28.95% and a net margin of 13.68%. The company’s quarterly revenue was down 18.7% on a year-over-year basis. During the same period in the previous year, the firm posted $0.24 EPS. sell-side analysts expect that Sonic will post 1.52 EPS for the current year.

Sonic declared that its Board of Directors has authorized a share repurchase plan on Thursday, October 26th that allows the company to buyback $160.00 million in outstanding shares. This buyback authorization allows the restaurant operator to buy up to 14.9% of its stock through open market purchases. Stock buyback plans are usually a sign that the company’s management believes its stock is undervalued.

In other news, Director Frank E. Richardson III sold 50,000 shares of Sonic stock in a transaction on 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 transaction, the director now owns 1,187,659 shares in the company, valued at $30,392,193.81. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, 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 value 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 disclosure for this sale can be found here. Insiders have sold 167,587 shares of company stock worth $4,537,647 in the last quarter. 6.24% of the stock is currently owned by corporate insiders.

Hedge funds have recently modified their holdings of the company. Schwab Charles Investment Management Inc. boosted its position in Sonic by 6.6% during the second quarter. Schwab Charles Investment Management Inc. now owns 204,401 shares of the restaurant operator’s stock valued at $5,415,000 after purchasing an additional 12,643 shares during the last quarter. Legal & General Group Plc boosted its position in Sonic by 5.0% during the second quarter. Legal & General Group Plc now owns 81,826 shares of the restaurant operator’s stock valued at $2,168,000 after purchasing an additional 3,862 shares during the last quarter. Victory Capital Management Inc. boosted its position in Sonic by 8.1% during the second quarter. Victory Capital Management Inc. now owns 18,464 shares of the restaurant operator’s stock valued at $489,000 after purchasing an additional 1,380 shares during the last quarter. Wells Fargo & Company MN boosted its position in Sonic by 28.7% during the second quarter. Wells Fargo & Company MN now owns 79,892 shares of the restaurant operator’s stock valued at $2,116,000 after purchasing an additional 17,822 shares during the last quarter. Finally, Alliancebernstein L.P. boosted its position in Sonic by 58.4% during the second quarter. Alliancebernstein L.P. now owns 129,905 shares of the restaurant operator’s stock valued at $3,441,000 after purchasing an additional 47,910 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.

Analyst Recommendations for Sonic (NASDAQ:SONC)

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