Crossmark Global Holdings Inc. Purchases New Stake in Sonic Co. (SONC)

Crossmark Global Holdings Inc. purchased a new stake in Sonic Co. (NASDAQ:SONC) during the 2nd quarter, HoldingsChannel.com reports. The fund purchased 7,389 shares of the restaurant operator’s stock, valued at approximately $254,000.

A number of other hedge funds and other institutional investors have also made changes to their positions in the stock. SG Americas Securities LLC lifted its position in Sonic by 70.9% in the 1st quarter. SG Americas Securities LLC now owns 6,285 shares of the restaurant operator’s stock valued at $159,000 after acquiring an additional 2,608 shares in the last quarter. Royal Bank of Canada lifted its position in Sonic by 22.9% in the 1st quarter. Royal Bank of Canada now owns 14,354 shares of the restaurant operator’s stock valued at $362,000 after acquiring an additional 2,673 shares in the last quarter. Victory Capital Management Inc. lifted its position in Sonic by 10.7% in the 1st quarter. Victory Capital Management Inc. now owns 37,803 shares of the restaurant operator’s stock valued at $954,000 after acquiring an additional 3,668 shares in the last quarter. Parametrica Management Ltd bought a new position in Sonic in the 2nd quarter valued at about $221,000. Finally, Aperio Group LLC bought a new position in Sonic in the 2nd quarter valued at about $244,000.

Sonic stock opened at $33.80 on Tuesday. Sonic Co. has a 52 week low of $22.11 and a 52 week high of $37.44. The company has a current ratio of 1.78, a quick ratio of 1.78 and a debt-to-equity ratio of -2.62. The company has a market cap of $1.23 billion, a price-to-earnings ratio of 27.04, a PEG ratio of 1.58 and a beta of 1.48.

Sonic (NASDAQ:SONC) last posted its earnings results on Tuesday, June 26th. The restaurant operator reported $0.52 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.49 by $0.03. Sonic had a net margin of 16.87% and a negative return on equity of 23.60%. The firm had revenue of $118.30 million for the quarter, compared to analysts’ expectations of $119.31 million. During the same quarter last year, the firm earned $0.43 EPS. The company’s quarterly revenue was down 4.6% compared to the same quarter last year. sell-side analysts expect that Sonic Co. will post 1.48 earnings per share for the current fiscal year.

Sonic announced that its Board of Directors has initiated a stock buyback program on Thursday, June 7th that authorizes the company to buyback $500.00 million in shares. This buyback authorization authorizes the restaurant operator to buy up to 42.2% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s leadership believes its stock is undervalued.

The business also recently declared a quarterly dividend, which will be paid on Friday, August 17th. Stockholders of record on Wednesday, August 8th will be paid a dividend of $0.16 per share. The ex-dividend date of this dividend is Tuesday, August 7th. This represents a $0.64 annualized dividend and a dividend yield of 1.89%. Sonic’s payout ratio is currently 51.20%.

In other news, VP E Edward Saroch sold 21,896 shares of the firm’s stock in a transaction that occurred on Tuesday, July 17th. The shares were sold at an average price of $36.46, for a total transaction of $798,328.16. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Christina D. Vaughan sold 2,124 shares of the firm’s stock in a transaction that occurred on Tuesday, July 17th. The stock was sold at an average price of $36.00, for a total transaction of $76,464.00. Following the sale, the insider now owns 2,124 shares of the company’s stock, valued at approximately $76,464. The disclosure for this sale can be found here. Company insiders own 8.28% of the company’s stock.

SONC has been the topic of several recent analyst reports. Morgan Stanley lifted their target price on shares of Sonic from $26.00 to $31.00 and gave the stock an “equal weight” rating in a research report on Thursday, June 28th. BidaskClub cut shares of Sonic from a “buy” rating to a “hold” rating in a research report on Saturday, May 5th. Citigroup lifted their target price on shares of Sonic from $32.00 to $41.00 and gave the stock a “buy” rating in a research report on Thursday, July 12th. ValuEngine raised shares of Sonic from a “hold” rating to a “buy” rating in a research report on Saturday, June 16th. Finally, Zacks Investment Research cut shares of Sonic from a “buy” rating to a “hold” rating in a research report on Friday, August 3rd. One investment analyst has rated the stock with a sell rating, nine have assigned a hold rating and four have assigned a buy rating to the stock. The company presently has an average rating of “Hold” and an average target price of $32.00.

Sonic Profile

Sonic Corp. operates and franchises a chain of quick-service drive-in restaurants in the United States. As of August 31, 2017, the company operated 3,593 Sonic Drive-Ins in 45 states, of which 228 were owned and operated by the company and 3,365 were owned and operated by franchisees. The company also owns and leases 135 properties; and sublease 53 properties to franchisees and other parties.

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Institutional Ownership by Quarter for Sonic (NASDAQ:SONC)

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