Sonic Corp. (SONC) Stock Rating Lowered by Zacks Investment Research
Sonic Corp. (NASDAQ:SONC) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors 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. “
SONC has been the subject of several other research reports. Oppenheimer Holdings, Inc. reissued a “buy” rating and set a $29.00 price target on shares of Sonic Corp. in a research report on Tuesday, October 17th. Cowen and Company reissued a “neutral” rating on shares of Sonic Corp. in a research report on Tuesday, October 17th. Canaccord Genuity raised their price target on Sonic Corp. from $24.00 to $25.00 and gave the stock a “hold” rating in a research report on Tuesday, October 17th. Bank of America Corporation reissued a “buy” rating and set a $30.00 price target on shares of Sonic Corp. in a research report on Monday, August 14th. Finally, BidaskClub downgraded Sonic Corp. from a “hold” rating to a “sell” rating in a research report on Sunday, July 16th. Four investment analysts have rated the stock with a sell rating, eight have given a hold rating and five have assigned a buy rating to the stock. The stock currently has an average rating of “Hold” and a consensus price target of $27.68.
Shares of Sonic Corp. (NASDAQ:SONC) traded down 1.84% during mid-day trading on Thursday, hitting $25.12. The company had a trading volume of 881,827 shares. The firm has a market capitalization of $1.04 billion, a P/E ratio of 17.32 and a beta of 1.76. The firm has a 50-day moving average price of $24.40 and a 200 day moving average price of $25.86. Sonic Corp. has a 12 month low of $21.12 and a 12 month high of $30.05.
Sonic Corp. (NASDAQ:SONC) last issued its quarterly earnings data on Monday, October 16th. The restaurant operator reported $0.45 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.43 by $0.02. The firm had revenue of $123.60 million during the quarter, compared to analysts’ expectations of $126.01 million. Sonic Corp. had a negative return on equity of 33.92% and a net margin of 13.34%. Sonic Corp.’s revenue was down 23.8% on a year-over-year basis. During the same period in the previous year, the firm posted $0.45 earnings per share. On average, equities research analysts forecast that Sonic Corp. will post $1.35 earnings per share for the current fiscal year.
Sonic Corp. announced that its Board of Directors has approved a share buyback plan on Wednesday, August 9th that allows the company to repurchase $160.00 million in shares. This repurchase authorization allows the restaurant operator to buy up to 16.2% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company’s leadership believes its shares are undervalued.
In other Sonic Corp. news, Director Steven A. Davis acquired 2,000 shares of the stock in a transaction dated Wednesday, September 6th. The stock was acquired at an average price of $23.00 per share, with a total value of $46,000.00. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 6.24% of the stock is owned by insiders.
Several large investors have recently made changes to their positions in SONC. Dynamic Technology Lab Private Ltd purchased a new stake in Sonic Corp. during the second quarter valued at about $681,000. Verition Fund Management LLC purchased a new stake in Sonic Corp. during the second quarter valued at about $307,000. Piedmont Investment Advisors LLC purchased a new stake in Sonic Corp. during the second quarter valued at about $244,000. Westwood Holdings Group Inc. grew its position in 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 acquiring an additional 134,371 shares during the period. Finally, Bluefin Trading LLC purchased a new stake in Sonic Corp. during the second quarter valued at about $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.
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