Insider Selling: Sonic Corp. (SONC) Director Sells $1,381,000.00 in Stock
Sonic Corp. (NASDAQ:SONC) Director Frank E. Richardson III sold 50,000 shares of the business’s stock in a transaction dated Friday, December 8th. The shares were sold at an average price of $27.62, for a total transaction of $1,381,000.00. Following the transaction, the director now directly owns 1,149,890 shares in the company, valued at approximately $31,759,961.80. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink.
Sonic Corp. (NASDAQ:SONC) opened at $28.32 on Thursday. Sonic Corp. has a 1 year low of $22.11 and a 1 year high of $30.05. The company has a debt-to-equity ratio of -3.19, a current ratio of 1.52 and a quick ratio of 1.48. The company has a market cap of $1,122.58, a PE ratio of 21.96, a price-to-earnings-growth ratio of 1.42 and a beta of 1.74.
Sonic (NASDAQ:SONC) last posted its earnings results on Monday, October 16th. The restaurant operator reported $0.45 EPS for the quarter, beating the Zacks’ consensus estimate of $0.43 by $0.02. Sonic had a net margin of 13.34% and a negative return on equity of 33.92%. The company had revenue of $123.60 million for the quarter, compared to analysts’ expectations of $126.01 million. During the same quarter in the prior year, the company posted $0.45 earnings per share. Sonic’s revenue for the quarter was down 23.8% compared to the same quarter last year. equities research analysts forecast that Sonic Corp. will post 1.34 EPS for the current fiscal year.
Sonic declared that its board has approved a share buyback plan on Thursday, October 26th that authorizes the company to repurchase $160.00 million in outstanding shares. This repurchase authorization authorizes the restaurant operator to reacquire up to 14.9% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company’s board of directors believes its stock is undervalued.
The business also recently announced a quarterly dividend, which was paid on Friday, November 17th. Shareholders of record on Wednesday, November 8th were given a $0.16 dividend. The ex-dividend date of this dividend was Tuesday, November 7th. This represents a $0.64 dividend on an annualized basis and a yield of 2.26%. This is a boost from Sonic’s previous quarterly dividend of $0.14. Sonic’s dividend payout ratio is presently 43.54%.
A number of hedge funds and other institutional investors have recently bought and sold shares of SONC. Riverhead Capital Management LLC lifted its position in Sonic by 77.7% in the second quarter. Riverhead Capital Management LLC now owns 4,797 shares of the restaurant operator’s stock valued at $127,000 after buying an additional 2,097 shares during the last quarter. Flinton Capital Management LLC lifted its position in Sonic by 74.5% in the second quarter. Flinton Capital Management LLC now owns 6,290 shares of the restaurant operator’s stock valued at $167,000 after buying an additional 2,686 shares during the last quarter. Aperio Group LLC lifted its position in Sonic by 1.4% in the second quarter. Aperio Group LLC now owns 8,348 shares of the restaurant operator’s stock valued at $221,000 after buying an additional 119 shares during the last quarter. HL Financial Services LLC acquired a new position in Sonic in the second quarter valued at about $227,000. Finally, Bayesian Capital Management LP acquired a new position in Sonic in the second quarter valued at about $228,000.
Several research analysts have recently weighed in on SONC shares. Zacks Investment Research cut shares of Sonic from a “hold” rating to a “sell” rating in a research report on Thursday, August 24th. Citigroup started coverage on shares of Sonic in a research report on Monday, September 18th. They set a “buy” rating and a $28.00 price target on the stock. Oppenheimer reissued a “buy” rating and set a $29.00 price target on shares of Sonic in a research report on Friday, October 6th. Cowen reissued a “neutral” rating on shares of Sonic in a research report on Tuesday, October 17th. Finally, Canaccord Genuity boosted their price target on shares of Sonic from $24.00 to $25.00 and gave the company a “hold” rating in a research report on Tuesday, October 17th. Two analysts have rated the stock with a sell rating, seven have assigned a hold rating and five have given a buy rating to the company’s stock. The stock presently has an average rating of “Hold” and an average price target of $27.73.
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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