Sonic’s (SONC) “Neutral” Rating Reaffirmed at UBS Group

Sonic (NASDAQ:SONC)‘s stock had its “neutral” rating reaffirmed by equities researchers at UBS Group in a research report issued to clients and investors on Friday, www.briefing.com reports. They presently have a $28.00 price objective on the restaurant operator’s stock, up from their prior price objective of $26.00. UBS Group’s price target points to a potential downside of 0.11% from the company’s current price.

Several other research firms have also recently issued reports on SONC. Zacks Investment Research upgraded shares of Sonic from a “sell” rating to a “buy” rating and set a $26.00 target price for the company in a research note on Wednesday, September 13th. Canaccord Genuity boosted their target price on shares of Sonic from $24.00 to $25.00 and gave the company a “hold” rating in a research note on Tuesday, October 17th. Oppenheimer cut shares of Sonic from an “outperform” rating to a “market perform” rating and set a $29.00 target price for the company. in a research note on Thursday. Guggenheim reiterated a “buy” rating and issued a $31.00 target price (up from $29.00) on shares of Sonic in a research note on Thursday, December 28th. Finally, BidaskClub upgraded shares of Sonic from a “sell” rating to a “hold” rating in a research note on Saturday, December 2nd. One investment analyst has rated the stock with a sell rating, nine have assigned a hold rating and five have given a buy rating to the company’s stock. The stock has an average rating of “Hold” and an average price target of $28.50.

Sonic (NASDAQ SONC) traded up $0.46 on Friday, hitting $28.03. 4,450,352 shares of the company traded hands, compared to its average volume of 2,020,425. The company has a debt-to-equity ratio of -3.19, a quick ratio of 1.48 and a current ratio of 1.52. Sonic has a 1 year low of $22.11 and a 1 year high of $30.05. The firm has a market cap of $1,090.00, a PE ratio of 19.20, a P/E/G ratio of 1.41 and a beta of 1.73.

Sonic (NASDAQ:SONC) last posted its earnings results on Thursday, January 4th. The restaurant operator reported $0.30 earnings per share (EPS) for the quarter, beating the 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 firm had revenue of $105.40 million during the quarter, compared to analysts’ expectations of $106.86 million. During the same period in the previous year, the business posted $0.24 EPS. The business’s revenue was down 18.7% compared to the same quarter last year. analysts forecast that Sonic will post 1.34 earnings per share for the current fiscal year.

Sonic announced that its Board of Directors has approved a stock repurchase program on Thursday, October 26th that authorizes the company to repurchase $160.00 million in shares. This repurchase authorization authorizes the restaurant operator to buy up to 14.9% of its shares through open market purchases. Shares repurchase programs are often an indication that the company’s board believes its shares are undervalued.

In related news, VP Carolyn C. Cummins sold 2,347 shares of the business’s stock in a transaction on Thursday, November 30th. The shares were sold at an average price of $25.43, for a total value of $59,684.21. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Federico F. Pena sold 1,161 shares of the company’s stock in a transaction on Monday, October 23rd. The stock was sold at an average price of $25.20, for a total transaction of $29,257.20. Following the sale, the director now directly owns 1,187,659 shares of the company’s stock, valued at approximately $29,929,006.80. The disclosure for this sale can be found here. In the last three months, insiders sold 167,587 shares of company stock valued at $4,537,647. 6.24% of the stock is owned by insiders.

Several institutional investors have recently added to or reduced their stakes in SONC. Riverhead Capital Management LLC grew its holdings in shares of Sonic by 77.7% during the second quarter. Riverhead Capital Management LLC now owns 4,797 shares of the restaurant operator’s stock worth $127,000 after buying an additional 2,097 shares in the last quarter. Flinton Capital Management LLC grew its holdings in shares of Sonic by 74.5% during the second quarter. Flinton Capital Management LLC now owns 6,290 shares of the restaurant operator’s stock worth $167,000 after buying an additional 2,686 shares in the last quarter. Bayesian Capital Management LP purchased a new stake in shares of Sonic during the second quarter worth $228,000. Wolverine Trading LLC grew its holdings in shares of Sonic by 382.4% during the third quarter. Wolverine Trading LLC now owns 9,110 shares of the restaurant operator’s stock worth $232,000 after buying an additional 12,336 shares in the last quarter. Finally, Crossmark Global Holdings Inc. purchased a new stake in shares of Sonic during the third quarter worth $239,000.

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About Sonic

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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