Sonic Corp. (SONC) Stock Rating Lowered by Zacks Investment Research
Sonic Corp. (NASDAQ:SONC) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Thursday.
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 analysts have also recently issued reports about the stock. Piper Jaffray Companies restated a “buy” rating and set a $32.00 target price on shares of Sonic Corp. in a research report on Wednesday, July 26th. Stephens restated an “overweight” rating and set a $32.00 target price on shares of Sonic Corp. in a research report on Monday, June 26th. BidaskClub cut shares of Sonic Corp. from a “buy” rating to a “hold” rating in a research report on Saturday, June 24th. Oppenheimer Holdings, Inc. restated an “outperform” rating and set a $29.00 target price on shares of Sonic Corp. in a research report on Monday, June 26th. Finally, Bank of America Corporation cut shares of Sonic Corp. from a “buy” rating to an “underperform” rating and upped their target price for the company from $27.00 to $30.00 in a research report on Tuesday, June 13th. Three research analysts have rated the stock with a sell rating, ten have given a hold rating and four have assigned a buy rating to the stock. The stock has a consensus rating of “Hold” and an average price target of $27.46.
Sonic Corp. (NASDAQ:SONC) traded up 2.95% on Thursday, hitting $24.41. The stock had a trading volume of 980,045 shares. The firm has a market cap of $1.02 billion, a price-to-earnings ratio of 16.27 and a beta of 1.77. Sonic Corp. has a 52-week low of $21.12 and a 52-week high of $30.05. The company’s 50 day moving average price is $23.64 and its 200 day moving average price is $25.72.
Sonic Corp. (NASDAQ:SONC) last announced its earnings results on Thursday, June 22nd. The restaurant operator reported $0.43 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.41 by $0.02. The firm had revenue of $124.00 million for the quarter, compared to analysts’ expectations of $122.58 million. Sonic Corp. had a net margin of 13.23% and a negative return on equity of 44.21%. The business’s revenue was down 24.9% compared to the same quarter last year. During the same period in the prior year, the company earned $0.43 EPS. Analysts expect that Sonic Corp. will post $1.24 EPS for the current year.
Sonic Corp. declared that its Board of Directors has approved a share buyback program on Wednesday, August 9th that authorizes the company to buyback $160.00 million in outstanding shares. This buyback authorization authorizes the restaurant operator to repurchase up to 16.2% of its shares through open market purchases. Shares buyback programs are usually an indication that the company’s board believes its stock is undervalued.
COPYRIGHT VIOLATION WARNING: “Sonic Corp. (SONC) Stock Rating Lowered by Zacks Investment Research” was originally reported by American Banking News and is the property of of American Banking News. If you are reading this piece of content on another website, it was copied illegally and republished in violation of U.S. & international copyright and trademark law. The original version of this piece of content can be viewed at https://www.americanbankingnews.com/2017/09/16/sonic-corp-sonc-stock-rating-lowered-by-zacks-investment-research.html.
In related news, Director Steven A. Davis bought 2,000 shares of Sonic Corp. stock in a transaction dated Wednesday, September 6th. The shares were acquired at an average cost of $23.00 per share, with a total value of $46,000.00. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Over the last ninety days, insiders have bought 5,000 shares of company stock worth $117,730. Corporate insiders own 6.24% of the company’s stock.
Several large investors have recently modified their holdings of the company. Dynamic Technology Lab Private Ltd purchased a new position in shares of Sonic Corp. during the second quarter worth approximately $681,000. Verition Fund Management LLC bought a new position in shares of Sonic Corp. during the second quarter valued at approximately $307,000. Piedmont Investment Advisors LLC bought a new position in shares of Sonic Corp. during the second quarter valued at approximately $244,000. Westwood Holdings Group Inc. boosted its stake in shares of Sonic Corp. by 24.2% during the second quarter. Westwood Holdings Group Inc. now owns 689,611 shares of the restaurant operator’s stock valued at $18,268,000 after purchasing an additional 134,371 shares in the last quarter. Finally, Bluefin Trading LLC bought a new position in shares of Sonic Corp. during the second quarter valued at approximately $291,000.
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.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for Sonic Corp. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Sonic Corp. and related companies with MarketBeat.com's FREE daily email newsletter.