Oppenheimer Holdings Brokers Boost Earnings Estimates for Sonic Corp. (SONC)
Sonic Corp. (NASDAQ:SONC) – Stock analysts at Oppenheimer Holdings boosted their FY2018 earnings estimates for Sonic Corp. in a research report issued to clients and investors on Monday. Oppenheimer Holdings analyst B. Bittner now forecasts that the restaurant operator will post earnings of $1.32 per share for the year, up from their previous estimate of $1.30. Oppenheimer Holdings has a “Buy” rating and a $29.00 price objective on the stock.
Sonic Corp. (NASDAQ:SONC) last released its earnings results on Monday, October 16th. The restaurant operator reported $0.45 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.43 by $0.02. The firm had revenue of $123.60 million during the quarter, compared to the consensus estimate of $126.01 million. Sonic Corp. had a net margin of 13.34% and a negative return on equity of 33.92%. The company’s revenue was down 23.8% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.45 EPS.
SONC has been the subject of several other reports. Zacks Investment Research raised shares of Sonic Corp. from a “sell” rating to a “hold” rating in a report on Tuesday, August 1st. Citigroup Inc. initiated coverage on shares of Sonic Corp. in a report on Monday, September 18th. They set a “buy” rating and a $28.00 target price for the company. Cowen and Company reaffirmed a “neutral” rating on shares of Sonic Corp. in a report on Tuesday. Stephens reaffirmed an “overweight” rating and set a $32.00 target price on shares of Sonic Corp. in a report on Monday, June 26th. Finally, Bank of America Corporation reaffirmed an “underperform” rating and set a $28.00 target price (down from $30.00) on shares of Sonic Corp. in a report on Sunday, June 25th. Four research analysts have rated the stock with a sell rating, eight have given a hold rating and five have assigned a buy rating to the stock. The company presently has a consensus rating of “Hold” and a consensus target price of $27.68.
Sonic Corp. (SONC) traded down 1.84% on Thursday, reaching $25.12. 881,827 shares of the company traded hands. The stock has a market capitalization of $1.04 billion, a price-to-earnings ratio of 17.32 and a beta of 1.76. The stock’s 50-day moving average is $24.40 and its 200-day moving average is $25.86. Sonic Corp. has a 1-year low of $21.12 and a 1-year high of $30.05.
Sonic Corp. declared that its Board of Directors has authorized a share buyback program on Wednesday, August 9th that authorizes the company to buyback $160.00 million in shares. This buyback authorization authorizes the restaurant operator to buy up to 16.2% of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s board believes its shares are undervalued.
In other news, Director Steven A. Davis purchased 2,000 shares of the company’s stock in a transaction on Wednesday, September 6th. The stock was acquired at an average cost of $23.00 per share, for a total transaction of $46,000.00. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Corporate insiders own 6.24% of the company’s stock.
Several institutional investors and hedge funds have recently bought and sold shares of the business. Aperio Group LLC boosted its position in shares of Sonic Corp. by 1.4% in the second quarter. Aperio Group LLC now owns 8,348 shares of the restaurant operator’s stock worth $221,000 after purchasing an additional 119 shares during the period. Mason Street Advisors LLC boosted its position in shares of Sonic Corp. by 2.8% during the first quarter. Mason Street Advisors LLC now owns 10,274 shares of the restaurant operator’s stock worth $261,000 after acquiring an additional 275 shares during the last quarter. Victory Capital Management Inc. boosted its position in shares of Sonic Corp. by 8.1% during the second quarter. Victory Capital Management Inc. now owns 18,464 shares of the restaurant operator’s stock worth $489,000 after acquiring an additional 1,380 shares during the last quarter. Cobiz Wealth LLC boosted its position in shares of Sonic Corp. by 2.6% during the second quarter. Cobiz Wealth LLC now owns 57,230 shares of the restaurant operator’s stock worth $1,516,000 after acquiring an additional 1,447 shares during the last quarter. Finally, Denver Investment Advisors LLC boosted its position in shares of Sonic Corp. by 8.9% during the second quarter. Denver Investment Advisors LLC now owns 17,880 shares of the restaurant operator’s stock worth $474,000 after acquiring an additional 1,465 shares during the last quarter.
Sonic Corp. 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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