Frank E. Richardson III Sells 50,000 Shares of Sonic Corp. (SONC) Stock
Sonic Corp. (NASDAQ:SONC) Director Frank E. Richardson III sold 50,000 shares of Sonic stock in a transaction dated Friday, December 8th. The stock was sold at an average price of $27.62, for a total value of $1,381,000.00. Following the completion of the sale, the director now owns 1,149,890 shares in the company, valued at $31,759,961.80. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink.
Shares of Sonic Corp. (NASDAQ SONC) opened at $27.94 on Wednesday. The company has a market cap of $1,108.50, a P/E ratio of 21.68, a PEG ratio of 1.40 and a beta of 1.74. The company has a current ratio of 1.52, a quick ratio of 1.48 and a debt-to-equity ratio of -3.19. Sonic Corp. has a 12-month low of $22.11 and a 12-month high of $30.05.
Sonic (NASDAQ:SONC) last released its quarterly earnings results on Monday, October 16th. The restaurant operator reported $0.45 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.43 by $0.02. The firm had revenue of $123.60 million for the quarter, compared to analyst estimates of $126.01 million. Sonic had a net margin of 13.34% and a negative return on equity of 33.92%. The business’s revenue for the quarter was down 23.8% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.45 EPS. analysts forecast that Sonic Corp. will post 1.34 earnings per share for the current year.
Sonic announced that its board has approved a stock buyback plan on Thursday, October 26th that permits the company to buyback $160.00 million in outstanding shares. This buyback authorization permits the restaurant operator to reacquire up to 14.9% of its shares through open market purchases. Shares buyback plans are generally an indication that the company’s board believes its shares are undervalued.
Several equities research analysts recently issued reports on SONC shares. Zacks Investment Research upgraded Sonic from a “sell” rating to a “buy” rating and set a $26.00 price objective on the stock in a report on Wednesday, September 13th. Citigroup started coverage on Sonic in a report on Monday, September 18th. They set a “buy” rating and a $28.00 target price on the stock. Oppenheimer restated a “buy” rating and set a $29.00 target price on shares of Sonic in a report on Friday, October 6th. Canaccord Genuity boosted their target price on Sonic from $24.00 to $25.00 and gave the stock a “hold” rating in a report on Tuesday, October 17th. Finally, Cowen restated a “neutral” rating on shares of Sonic in a report on Tuesday, October 17th. Two research analysts have rated the stock with a sell rating, seven have issued a hold rating and five have assigned a buy rating to the company. The company has a consensus rating of “Hold” and a consensus target price of $27.73.
Several hedge funds have recently added to or reduced their stakes in the company. Public Employees Retirement System of Ohio raised its position in shares of Sonic by 2,344.8% during the 3rd quarter. Public Employees Retirement System of Ohio now owns 15,329 shares of the restaurant operator’s stock valued at $390,000 after buying an additional 14,702 shares during the period. Wolverine Trading LLC raised its position in shares of Sonic by 382.4% during the 3rd 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 period. California Public Employees Retirement System raised its position in shares of Sonic by 2.1% during the 3rd quarter. California Public Employees Retirement System now owns 114,222 shares of the restaurant operator’s stock valued at $2,907,000 after buying an additional 2,322 shares during the period. Atlanta Capital Management Co. L L C purchased a new stake in Sonic in the third quarter valued at approximately $7,681,000. Finally, Engineers Gate Manager LP purchased a new stake in Sonic in the third quarter valued at approximately $531,000.
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.
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