Sonic Corp. (SONC) Downgraded by Zacks Investment Research
Sonic Corp. (NASDAQ:SONC) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Tuesday.
According to Zacks, “Sonic Corp. operates and franchises one of the largest chain of drive-in restaurants in the United States. Sonic restaurants offer made-to-order hamburgers and other sandwiches and feature Sonic signature items, such as footlong coney cheese dogs, hand-battered onion rings, tater tots, specialty soft drinks, including cherry limeades and slushes, and frozen desserts. At a typical Sonic restaurant, a customer drives into one of 24 to 36 covered drive-in spaces, orders through an intercom, and has the food delivered by a carhop within an average of four minutes. “
Other equities research analysts have also recently issued reports about the company. Cowen and Company cut their target price on Sonic Corp. from $24.00 to $23.00 and set a “market perform” rating on the stock in a research note on Wednesday, March 29th. BidaskClub cut Sonic Corp. from a “buy” rating to a “hold” rating in a research note on Saturday, June 24th. Stephens reiterated an “overweight” rating and issued a $32.00 target price on shares of Sonic Corp. in a research note on Monday, June 26th. Barclays PLC cut their target price on Sonic Corp. from $26.00 to $24.00 and set an “underweight” rating on the stock in a research note on Wednesday, March 29th. Finally, Oppenheimer Holdings, Inc. reiterated an “outperform” rating and issued a $29.00 target price on shares of Sonic Corp. in a research note on Monday, June 26th. Five research analysts have rated the stock with a sell rating, nine have given a hold rating and two have given a buy rating to the company’s stock. Sonic Corp. has an average rating of “Hold” and a consensus target price of $27.27.
Sonic Corp. (NASDAQ:SONC) opened at 25.84 on Tuesday. The firm has a market capitalization of $1.08 billion, a PE ratio of 17.23 and a beta of 1.77. The firm has a 50-day moving average of $28.54 and a 200 day moving average of $26.51. Sonic Corp. has a 52 week low of $21.12 and a 52 week high of $30.05.
Sonic Corp. (NASDAQ:SONC) last posted its earnings results on Thursday, June 22nd. The restaurant operator reported $0.43 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.41 by $0.02. The company had revenue of $124 million for the quarter, compared to analysts’ expectations of $122.58 million. Sonic Corp. had a negative return on equity of 44.21% and a net margin of 13.23%. The firm’s quarterly revenue was down 24.9% compared to the same quarter last year. During the same period last year, the business posted $0.43 earnings per share. Analysts predict that Sonic Corp. will post $1.24 earnings per share for the current year.
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In related news, Director Frank E. Richardson III sold 50,000 shares of Sonic Corp. stock in a transaction dated Tuesday, May 16th. The stock was sold at an average price of $28.15, for a total transaction of $1,407,500.00. Following the transaction, the director now directly owns 1,202,310 shares of the company’s stock, valued at $33,845,026.50. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, VP Carolyn C. Cummins sold 2,500 shares of Sonic Corp. stock in a transaction dated Monday, May 8th. The stock was sold at an average price of $28.39, for a total value of $70,975.00. The disclosure for this sale can be found here. 6.24% of the stock is owned by insiders.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. HL Financial Services LLC raised its position in Sonic Corp. by 22.2% in the fourth quarter. HL Financial Services LLC now owns 64,638 shares of the restaurant operator’s stock worth $2,089,000 after buying an additional 11,723 shares during the last quarter. New York State Common Retirement Fund raised its position in Sonic Corp. by 66.2% in the fourth quarter. New York State Common Retirement Fund now owns 78,935 shares of the restaurant operator’s stock worth $2,550,000 after buying an additional 31,435 shares during the last quarter. Engineers Gate Manager LP raised its position in Sonic Corp. by 268.2% in the fourth quarter. Engineers Gate Manager LP now owns 110,128 shares of the restaurant operator’s stock worth $3,558,000 after buying an additional 80,222 shares during the last quarter. Lebenthal Lisanti Capital Growth LLC purchased a new position in Sonic Corp. during the fourth quarter worth about $1,116,000. Finally, California Public Employees Retirement System raised its position in Sonic Corp. by 0.5% in the fourth quarter. California Public Employees Retirement System now owns 206,700 shares of the restaurant operator’s stock worth $6,678,000 after buying an additional 1,000 shares during the last quarter. 97.24% of the stock is currently owned by hedge funds and other institutional investors.
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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