Sonic Co. (SONC) Given Consensus Recommendation of “Hold” by Brokerages

Shares of Sonic Co. (NASDAQ:SONC) have been assigned an average rating of “Hold” from the seventeen brokerages that are covering the stock, MarketBeat reports. One analyst has rated the stock with a sell recommendation, fourteen have assigned a hold recommendation, one has issued a buy recommendation and one has given a strong buy recommendation to the company. The average twelve-month target price among brokerages that have issued a report on the stock in the last year is $37.10.

Several research firms have recently issued reports on SONC. Zacks Investment Research cut shares of Sonic from a “hold” rating to a “sell” rating in a research report on Saturday, December 1st. BidaskClub cut shares of Sonic from a “buy” rating to a “hold” rating in a research report on Wednesday, November 28th. Morgan Stanley lifted their price objective on shares of Sonic from $31.00 to $34.00 and gave the stock an “equal weight” rating in a research report on Thursday, September 13th. William Blair cut shares of Sonic from an “outperform” rating to a “market perform” rating in a research report on Tuesday, September 25th. Finally, Citigroup cut shares of Sonic from a “buy” rating to a “neutral” rating and lifted their price objective for the stock from $41.00 to $43.50 in a research report on Monday, November 5th.

SONC stock traded up $0.03 during midday trading on Thursday, hitting $43.49. The company’s stock had a trading volume of 2,839,665 shares, compared to its average volume of 919,426. Sonic has a 52-week low of $23.22 and a 52-week high of $44.87. The stock has a market capitalization of $1.55 billion, a PE ratio of 29.19, a P/E/G ratio of 1.87 and a beta of 1.32.

Sonic (NASDAQ:SONC) last issued its quarterly earnings results on Tuesday, October 16th. The restaurant operator reported $0.52 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.51 by $0.01. The company had revenue of $111.80 million during the quarter, compared to analysts’ expectations of $113.22 million. Sonic had a net margin of 16.81% and a negative return on equity of 21.64%. The firm’s revenue was down 9.5% compared to the same quarter last year. During the same quarter last year, the company posted $0.45 EPS. On average, sell-side analysts predict that Sonic will post 1.64 earnings per share for the current fiscal year.

Sonic announced that its Board of Directors has approved a stock buyback program on Wednesday, August 8th that authorizes the company to buyback $500.00 million in outstanding shares. This buyback authorization authorizes the restaurant operator to purchase up to 40.5% of its stock through open market purchases. Stock buyback programs are often a sign that the company’s board of directors believes its shares are undervalued.

In related news, VP Carolyn C. Cummins sold 2,500 shares of Sonic stock in a transaction on Monday, October 1st. The shares were sold at an average price of $43.31, for a total transaction of $108,275.00. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, insider John H. Budd III sold 89,176 shares of Sonic stock in a transaction on Monday, October 1st. The stock was sold at an average price of $43.24, for a total transaction of $3,855,970.24. Following the sale, the insider now owns 32,065 shares in the company, valued at $1,386,490.60. The disclosure for this sale can be found here. 6.24% of the stock is owned by company insiders.

A number of large investors have recently made changes to their positions in SONC. Royal Bank of Canada raised its stake in Sonic by 22.9% during the 1st quarter. Royal Bank of Canada now owns 14,354 shares of the restaurant operator’s stock worth $362,000 after acquiring an additional 2,673 shares in the last quarter. Cornerstone Wealth Management LLC acquired a new stake in Sonic during the 2nd quarter worth $405,000. Aperio Group LLC acquired a new stake in Sonic during the 2nd quarter worth $244,000. Crossmark Global Holdings Inc. acquired a new stake in Sonic during the 2nd quarter worth $254,000. Finally, Commonwealth of Pennsylvania Public School Empls Retrmt SYS acquired a new stake in Sonic during the 2nd quarter worth $271,000. Hedge funds and other institutional investors own 89.15% of the company’s stock.

Sonic Company Profile

Sonic Corp., through its subsidiaries, operates and franchises a chain of drive-in restaurants in the United States. As of August 31, 2018, the company operated 3,606 Sonic Drive-Ins in 45 states, including 3,427 Drive-Ins owned and operated by franchisees; and 179 Drive-Ins owned and operated by the company.

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Analyst Recommendations for Sonic (NASDAQ:SONC)

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