Sonic Corp. (SONC) to Repurchase $160.00 million in Outstanding Shares
Sonic Corp. (NASDAQ:SONC) declared that its board has authorized a share repurchase program, which allows the company to buyback $160.00 million in outstanding shares on Wednesday, August 9th, EventVestor reports. This buyback authorization allows the restaurant operator to repurchase up to 16.2% of its shares through open market purchases. Shares buyback programs are generally a sign that the company’s management believes its shares are undervalued.
Sonic Corp. (SONC) traded down 0.17% during mid-day trading on Friday, hitting $23.79. The stock had a trading volume of 73,090 shares. The company has a market cap of $994.64 million, a price-to-earnings ratio of 15.86 and a beta of 1.74. Sonic Corp. has a 12 month low of $21.12 and a 12 month high of $30.05. The firm’s 50-day moving average is $25.38 and its 200 day moving average is $26.12.
Sonic Corp. (NASDAQ:SONC) last announced its quarterly earnings results on Thursday, June 22nd. The restaurant operator reported $0.43 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.41 by $0.02. The company had revenue of $124 million during the quarter, compared to analysts’ expectations of $122.58 million. Sonic Corp. had a negative return on equity of 44.21% and a net margin of 13.23%. The firm’s quarterly revenue was down 24.9% compared to the same quarter last year. During the same period in the previous year, the business earned $0.43 earnings per share. Equities analysts anticipate that Sonic Corp. will post $1.24 EPS for the current fiscal year.
The business also recently declared a quarterly dividend, which will be paid on Friday, August 18th. Stockholders of record on Wednesday, August 9th will be given a $0.14 dividend. This represents a $0.56 annualized dividend and a dividend yield of 2.35%. The ex-dividend date is Monday, August 7th. Sonic Corp.’s dividend payout ratio (DPR) is presently 37.33%.
A number of research analysts have commented on the company. Zacks Investment Research raised Sonic Corp. from a “sell” rating to a “hold” rating in a report on Tuesday, August 1st. Piper Jaffray Companies reaffirmed a “buy” rating and issued a $32.00 price objective on shares of Sonic Corp. in a report on Wednesday, July 26th. BidaskClub lowered Sonic Corp. from a “hold” rating to a “sell” rating in a report on Sunday, July 16th. Jefferies Group LLC reaffirmed a “hold” rating and issued a $26.00 price objective on shares of Sonic Corp. in a report on Thursday, July 27th. Finally, Stephens raised Sonic Corp. from an “equal weight” rating to an “overweight” rating and upped their price objective for the company from $26.00 to $32.00 in a report on Monday, April 24th. Four analysts have rated the stock with a sell rating, ten have given a hold rating and three have assigned a buy rating to the company’s stock. Sonic Corp. presently has an average rating of “Hold” and a consensus target price of $27.61.
In other news, Director Frank E. Richardson III sold 50,000 shares of Sonic Corp. stock in a transaction on Tuesday, May 16th. The stock was sold at an average price of $28.15, for a total value of $1,407,500.00. Following the completion of the transaction, the director now directly owns 1,202,310 shares in the company, valued at $33,845,026.50. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Steven A. Davis purchased 2,000 shares of Sonic Corp. stock in a transaction dated Friday, July 21st. The stock was bought at an average price of $24.62 per share, with a total value of $49,240.00. The disclosure for this purchase can be found here. 6.24% of the stock is currently owned by insiders.
About Sonic Corp.
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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