BidaskClub cut shares of Sonic (NASDAQ:SONC) from a sell rating to a strong sell rating in a report released on Wednesday morning.

Several other equities analysts have also recently weighed in on SONC. Oppenheimer reaffirmed a hold rating on shares of Sonic in a report on Friday, January 5th. UBS Group reaffirmed a neutral rating and issued a $28.00 price objective (up from $26.00) on shares of Sonic in a report on Friday, January 5th. Canaccord Genuity reaffirmed a hold rating and issued a $30.00 price objective on shares of Sonic in a report on Friday, January 5th. Barclays lifted their price objective on Sonic from $27.00 to $28.00 and gave the company an underweight rating in a report on Tuesday, January 16th. Finally, Telsey Advisory Group reaffirmed a market perform rating and issued a $31.00 price objective (up from $27.00) on shares of Sonic in a report on Friday, January 5th. Two research analysts have rated the stock with a sell rating, seven have assigned a hold rating and six have issued a buy rating to the company’s stock. The company currently has a consensus rating of Hold and an average price target of $29.64.

Sonic (NASDAQ SONC) opened at $25.84 on Wednesday. The firm has a market capitalization of $1,002.22, a price-to-earnings ratio of 17.46, a price-to-earnings-growth ratio of 1.17 and a beta of 1.74. The company has a quick ratio of 1.81, a current ratio of 1.81 and a debt-to-equity ratio of -2.87. Sonic has a fifty-two week low of $22.11 and a fifty-two week high of $30.05.

Sonic (NASDAQ:SONC) last announced its quarterly earnings data on Thursday, January 4th. The restaurant operator reported $0.30 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.25 by $0.05. The firm had revenue of $105.40 million during the quarter, compared to analysts’ expectations of $106.86 million. Sonic had a negative return on equity of 28.95% and a net margin of 13.68%. The company’s quarterly revenue was down 18.7% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.24 EPS. equities research analysts anticipate that Sonic will post 1.52 earnings per share for the current fiscal year.

Sonic declared that its board has approved a share repurchase program on Thursday, October 26th that allows the company to buyback $160.00 million in shares. This buyback authorization allows the restaurant operator to buy up to 14.9% of its shares through open market purchases. Shares buyback programs are generally a sign that the company’s board believes its shares are undervalued.

The firm also recently declared a quarterly dividend, which will be paid on Friday, February 16th. Stockholders of record on Wednesday, February 7th will be issued a dividend of $0.16 per share. The ex-dividend date of this dividend is Tuesday, February 6th. This represents a $0.64 dividend on an annualized basis and a dividend yield of 2.48%. Sonic’s dividend payout ratio (DPR) is currently 43.24%.

In other news, Director Frank E. Richardson III sold 3,670 shares of the business’s stock in a transaction on Monday, December 18th. The stock was sold at an average price of $28.21, for a total transaction of $103,530.70. Following the completion of the transaction, the director now owns 1,061,699 shares of the company’s stock, valued at approximately $29,950,528.79. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, Director Federico F. Pena sold 4,575 shares of the business’s stock in a transaction on Wednesday, January 17th. The stock was sold at an average price of $25.99, for a total value of $118,904.25. The disclosure for this sale can be found here. Insiders have sold a total of 121,001 shares of company stock valued at $3,347,794 in the last three months. 8.28% of the stock is owned by insiders.

Several institutional investors have recently bought and sold shares of the company. Riverhead Capital Management LLC raised its holdings in shares of Sonic by 77.7% during the 2nd 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. California Public Employees Retirement System grew its position in Sonic by 2.0% during the 2nd quarter. California Public Employees Retirement System now owns 111,900 shares of the restaurant operator’s stock worth $2,964,000 after acquiring an additional 2,200 shares during the last quarter. Flinton Capital Management LLC grew its position in Sonic by 74.5% during the 2nd quarter. Flinton Capital Management LLC now owns 6,290 shares of the restaurant operator’s stock worth $167,000 after acquiring an additional 2,686 shares during the last quarter. TD Asset Management Inc. grew its position in Sonic by 3.6% during the 3rd quarter. TD Asset Management Inc. now owns 92,761 shares of the restaurant operator’s stock worth $2,361,000 after acquiring an additional 3,200 shares during the last quarter. Finally, FDx Advisors Inc. grew its position in Sonic by 30.8% during the 3rd quarter. FDx Advisors Inc. now owns 17,112 shares of the restaurant operator’s stock worth $436,000 after acquiring an additional 4,029 shares during the last quarter.

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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.

Analyst Recommendations for Sonic (NASDAQ:SONC)

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