Barclays Raises Sonic (SONC) Price Target to $28.00

Sonic (NASDAQ:SONC) had its price target lifted by Barclays from $27.00 to $28.00 in a report released on Tuesday, MarketBeat reports. Barclays currently has an underweight rating on the restaurant operator’s stock.

A number of other equities research analysts also recently weighed in on SONC. Oppenheimer reiterated a hold rating on shares of Sonic in a report on Friday, January 5th. Zacks Investment Research upgraded Sonic from a hold rating to a buy rating and set a $28.00 target price for the company in a report on Thursday, September 28th. UBS Group reiterated a neutral rating and issued a $28.00 target price (up from $26.00) on shares of Sonic in a report on Friday, January 5th. Cowen reiterated a hold rating and issued a $29.00 target price on shares of Sonic in a report on Tuesday, January 9th. Finally, Telsey Advisory Group reiterated a market perform rating and issued a $31.00 target price (up from $27.00) on shares of Sonic in a report on Friday, January 5th. Two analysts have rated the stock with a sell rating, seven have given a hold rating and six have given a buy rating to the company. The company has a consensus rating of Hold and an average price target of $29.64.

Shares of Sonic (NASDAQ SONC) traded up $0.41 on Tuesday, hitting $26.49. The stock had a trading volume of 986,527 shares, compared to its average volume of 1,295,571. Sonic has a 52 week low of $22.11 and a 52 week high of $30.05. The company has a quick ratio of 1.81, a current ratio of 1.81 and a debt-to-equity ratio of -2.87. The company has a market capitalization of $1,020.00, a P/E ratio of 18.14, a price-to-earnings-growth ratio of 1.16 and a beta of 1.73.

Sonic (NASDAQ:SONC) last issued its earnings results on Thursday, January 4th. The restaurant operator reported $0.30 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.25 by $0.05. The business had revenue of $105.40 million during the quarter, compared to the consensus estimate of $106.86 million. Sonic had a negative return on equity of 28.95% and a net margin of 13.68%. The firm’s revenue for the quarter was down 18.7% on a year-over-year basis. During the same period in the previous year, the company posted $0.24 earnings per share. research analysts predict that Sonic will post 1.52 EPS for the current fiscal year.

Sonic announced that its Board of Directors has approved a share buyback plan on Thursday, October 26th that permits the company to repurchase $160.00 million in shares. This repurchase authorization permits the restaurant operator to buy up to 14.9% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company’s board believes its stock is undervalued.

The company also recently disclosed a quarterly dividend, which will be paid on Friday, February 16th. Shareholders of record on Wednesday, February 7th will be paid a $0.16 dividend. The ex-dividend date is Tuesday, February 6th. This represents a $0.64 dividend on an annualized basis and a yield of 2.42%. Sonic’s dividend payout ratio (DPR) is presently 43.84%.

In related news, Director Frank E. Richardson III sold 50,000 shares of Sonic stock in a transaction that occurred on Wednesday, December 13th. The stock was sold at an average price of $28.40, for a total transaction of $1,420,000.00. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Federico F. Pena sold 1,161 shares of Sonic stock in a transaction that occurred on Monday, October 23rd. The shares were sold at an average price of $25.20, for a total value of $29,257.20. Following the transaction, the director now directly owns 1,187,659 shares in the company, valued at approximately $29,929,006.80. The disclosure for this sale can be found here. Insiders sold 172,162 shares of company stock valued at $4,656,551 in the last three months. Insiders own 6.24% of the company’s stock.

Several large investors have recently made changes to their positions in SONC. Riverhead Capital Management LLC boosted its position in shares of Sonic by 77.7% during 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 boosted its position in shares of Sonic by 74.5% during 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. Bayesian Capital Management LP purchased a new position in shares of Sonic during the second quarter valued at approximately $228,000. Wolverine Trading LLC boosted its position in shares of Sonic by 382.4% during the third quarter. Wolverine Trading LLC now owns 9,110 shares of the restaurant operator’s stock valued at $232,000 after buying an additional 12,336 shares during the last quarter. Finally, Crossmark Global Holdings Inc. purchased a new position in shares of Sonic during the third quarter valued at approximately $239,000.

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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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