Sonic Co. (SONC) Receives Average Rating of “Hold” from Brokerages
Shares of Sonic Co. (NASDAQ:SONC) have been assigned a consensus rating of “Hold” from the fifteen analysts that are covering the company, Marketbeat reports. Two research analysts have rated the stock with a sell recommendation, seven have assigned a hold recommendation and six have issued a buy recommendation on the company. The average 12 month target price among analysts that have covered the stock in the last year is $29.38.
Several research firms have recently weighed in on SONC. Guggenheim reiterated a “buy” rating and issued a $31.00 price objective (up previously from $29.00) on shares of Sonic in a research note on Thursday, December 28th. Canaccord Genuity reissued a “hold” rating and issued a $30.00 price target on shares of Sonic in a research report on Friday, January 5th. UBS Group reissued a “neutral” rating and issued a $28.00 price target (up previously from $26.00) on shares of Sonic in a research report on Friday, January 5th. Oppenheimer downgraded shares of Sonic from an “outperform” rating to a “market perform” rating and set a $29.00 price target for the company. in a research report on Thursday, January 4th. Finally, Telsey Advisory Group reissued a “market perform” rating and issued a $31.00 price target (up previously from $27.00) on shares of Sonic in a research report on Friday, January 5th.
Sonic (NASDAQ:SONC) traded down $0.53 during trading hours on Monday, hitting $26.34. 854,300 shares of the stock traded hands, compared to its average volume of 1,488,233. The company has a market cap of $1,010.00, a price-to-earnings ratio of 18.04, a P/E/G ratio of 1.18 and a beta of 1.73. The company has a quick ratio of 1.81, a current ratio of 1.81 and a debt-to-equity ratio of -2.87. Sonic has a 12 month low of $22.11 and a 12 month high of $30.05.
The company also recently disclosed a quarterly dividend, which will be paid on Friday, February 16th. Shareholders of record on Wednesday, February 7th will be issued a dividend of $0.16 per share. This represents a $0.64 dividend on an annualized basis and a yield of 2.43%. Sonic’s dividend payout ratio is 43.84%.
Sonic declared that its board has initiated a share buyback program on Thursday, October 26th that permits the company to buyback $160.00 million in outstanding shares. This buyback authorization permits the restaurant operator to repurchase up to 14.9% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s board of directors believes its shares are undervalued.
In other Sonic news, Director Frank E. Richardson III sold 3,670 shares of Sonic stock in a transaction on Monday, December 18th. The shares were sold at an average price of $28.21, for a total transaction of $103,530.70. Following the transaction, the director now directly owns 1,061,699 shares of the company’s stock, valued at approximately $29,950,528.79. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Carolyn C. Cummins sold 2,347 shares of Sonic stock in a transaction on Thursday, November 30th. The stock was 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 have sold a total of 167,587 shares of company stock worth $4,537,647 over the last ninety days. Insiders own 8.28% of the company’s stock.
A number of institutional investors and hedge funds have recently bought and sold shares of SONC. Westfield Capital Management Co. LP purchased a new position in Sonic during the 2nd quarter worth $27,984,000. UBS Asset Management Americas Inc. boosted its holdings in Sonic by 3,507.8% during the 2nd quarter. UBS Asset Management Americas Inc. now owns 420,125 shares of the restaurant operator’s stock worth $11,129,000 after acquiring an additional 408,480 shares during the last quarter. Atlanta Capital Management Co. L L C purchased a new position in Sonic during the 3rd quarter worth $7,681,000. Macquarie Group Ltd. boosted its holdings in Sonic by 25.4% during the 3rd quarter. Macquarie Group Ltd. now owns 1,462,539 shares of the restaurant operator’s stock worth $37,222,000 after acquiring an additional 296,665 shares during the last quarter. Finally, OxFORD Asset Management LLP boosted its holdings in Sonic by 406.0% during the 3rd quarter. OxFORD Asset Management LLP now owns 234,792 shares of the restaurant operator’s stock worth $5,954,000 after acquiring an additional 188,389 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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