Sonic Corp. (SONC) Earns “Buy” Rating from Oppenheimer Holdings, Inc.
Oppenheimer Holdings, Inc. reissued their buy rating on shares of Sonic Corp. (NASDAQ:SONC) in a research report released on Friday morning. The firm currently has a $29.00 target price on the restaurant operator’s stock. Oppenheimer Holdings also issued estimates for Sonic Corp.’s Q4 2017 earnings at $0.43 EPS, FY2017 earnings at $1.23 EPS, Q1 2018 earnings at $0.23 EPS, Q2 2018 earnings at $0.16 EPS, Q3 2018 earnings at $0.47 EPS, Q4 2018 earnings at $0.47 EPS, FY2018 earnings at $1.30 EPS and FY2019 earnings at $1.47 EPS.
SONC has been the topic of a number of other reports. Zacks Investment Research upgraded Sonic Corp. from a sell rating to a hold rating in a research report on Tuesday, August 1st. Citigroup Inc. assumed coverage on Sonic Corp. in a research report on Monday, September 18th. They issued a buy rating and a $28.00 target price on the stock. Stephens reiterated an overweight rating and issued a $32.00 target price on shares of Sonic Corp. in a research report on Monday, June 26th. Bank of America Corporation reiterated an underperform rating and issued a $28.00 target price (down from $30.00) on shares of Sonic Corp. in a research report on Sunday, June 25th. Finally, BidaskClub downgraded Sonic Corp. from a strong-buy rating to a buy rating in a research report on Saturday, June 17th. Three equities research analysts have rated the stock with a sell rating, eight have issued a hold rating and six have given a buy rating to the stock. Sonic Corp. currently has an average rating of Hold and a consensus target price of $27.61.
Sonic Corp. (NASDAQ:SONC) opened at 24.52 on Friday. The stock’s 50 day moving average price is $24.02 and its 200 day moving average price is $25.79. The company has a market capitalization of $1.03 billion, a price-to-earnings ratio of 16.35 and a beta of 1.76. Sonic Corp. has a 12 month low of $21.12 and a 12 month high of $30.05.
Sonic Corp. announced that its Board of Directors has initiated a share repurchase plan on Wednesday, August 9th that authorizes the company to buyback $160.00 million in outstanding shares. This buyback authorization authorizes the restaurant operator to purchase up to 16.2% of its stock through open market purchases. Stock buyback plans are usually an indication that the company’s board of directors believes its stock is undervalued.
In related news, Director Steven A. Davis acquired 2,000 shares of the firm’s stock in a transaction on Wednesday, September 6th. The shares were acquired at an average cost of $23.00 per share, for a total transaction of $46,000.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Over the last 90 days, insiders have acquired 5,000 shares of company stock worth $117,730. Company insiders own 6.24% of the company’s stock.
A number of hedge funds have recently modified their holdings of the business. BlackRock Inc. raised its position in Sonic Corp. by 121,423.6% during the first quarter. BlackRock Inc. now owns 5,323,947 shares of the restaurant operator’s stock valued at $135,015,000 after purchasing an additional 5,319,566 shares during the period. Vanguard Group Inc. raised its position in Sonic Corp. by 1.2% during the second quarter. Vanguard Group Inc. now owns 3,596,500 shares of the restaurant operator’s stock valued at $95,272,000 after purchasing an additional 43,146 shares during the period. Dimensional Fund Advisors LP raised its position in Sonic Corp. by 5.2% during the second quarter. Dimensional Fund Advisors LP now owns 1,946,931 shares of the restaurant operator’s stock valued at $51,575,000 after purchasing an additional 95,894 shares during the period. Macquarie Group Ltd. raised its position in Sonic Corp. by 2.3% during the second quarter. Macquarie Group Ltd. now owns 1,165,874 shares of the restaurant operator’s stock valued at $30,884,000 after purchasing an additional 26,636 shares during the period. Finally, State Street Corp raised its position in Sonic Corp. by 2.0% during the second quarter. State Street Corp now owns 1,083,561 shares of the restaurant operator’s stock valued at $28,707,000 after purchasing an additional 21,420 shares during the period.
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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