Sonic (NASDAQ:SONC) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Thursday.
According to Zacks, “Sonic Corp., America’s Drive-in has built a dominant position in the drive-in restaurant business. They did it by sticking to what made drive-ins so popular in the first place: made-to-order American classics, signature menu items, speedy service from friendly Carhops and heaping helpings of fun and personality. Today, Sonic is the largest chain of drive-in restaurants in America. As a business, they continue to thrive, maintaining strong real sales growth, industry-leading customer frequency and high returns for their stockholders. So take a cruise through their website to learn more about our company and the people who help make it an American success story. “
SONC has been the topic of several other research reports. Telsey Advisory Group reiterated a “market perform” rating and issued a $31.00 target price (up previously from $27.00) on shares of Sonic in a research note on Friday, January 5th. Cowen reiterated a “hold” rating and issued a $29.00 target price on shares of Sonic in a research note on Tuesday, January 9th. Barclays upped their target price on shares of Sonic from $27.00 to $28.00 and gave the stock an “underweight” rating in a research note on Tuesday, January 16th. BidaskClub upgraded shares of Sonic from a “sell” rating to a “hold” rating in a research note on Saturday, December 2nd. Finally, Guggenheim reiterated a “buy” rating and issued a $31.00 target price (up previously from $29.00) on shares of Sonic in a research note on Thursday, December 28th. Two investment analysts have rated the stock with a sell rating, eight have issued a hold rating and five have issued a buy rating to the company. The company has a consensus rating of “Hold” and a consensus target price of $29.43.
Shares of Sonic (NASDAQ:SONC) opened at $24.39 on Thursday. The firm has a market cap of $948.76, a PE ratio of 16.48, a price-to-earnings-growth ratio of 1.10 and a beta of 1.55. The company has a quick ratio of 1.81, a current ratio of 1.81 and a debt-to-equity ratio of -2.87. Sonic has a fifty-two week low of $22.11 and a fifty-two week high of $30.05.
Sonic (NASDAQ:SONC) last issued its earnings results on Thursday, January 4th. The restaurant operator reported $0.30 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.25 by $0.05. The firm had revenue of $105.40 million for the quarter, compared to the consensus estimate of $106.86 million. Sonic had a net margin of 13.68% and a negative return on equity of 28.95%. The business’s revenue was down 18.7% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.24 earnings per share. equities analysts expect that Sonic will post 1.53 EPS for the current year.
In related news, Director Federico F. Pena sold 9,686 shares of the stock in a transaction that occurred on Monday, February 12th. The shares were sold at an average price of $24.61, for a total transaction of $238,372.46. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Federico F. Pena sold 4,575 shares of the stock in a transaction that occurred on Wednesday, January 17th. The shares were sold at an average price of $25.99, for a total transaction of $118,904.25. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 17,931 shares of company stock worth $460,807. 8.28% of the stock is owned by insiders.
A number of institutional investors have recently modified their holdings of SONC. First Trust Advisors LP bought a new position in Sonic during the third quarter valued at approximately $644,000. Crossmark Global Holdings Inc. bought a new position in Sonic during the third quarter valued at approximately $239,000. Victory Capital Management Inc. lifted its position in Sonic by 73.7% during the third quarter. Victory Capital Management Inc. now owns 32,063 shares of the restaurant operator’s stock valued at $816,000 after purchasing an additional 13,599 shares during the period. FDx Advisors Inc. lifted its position in Sonic by 30.8% during the third quarter. FDx Advisors Inc. now owns 17,112 shares of the restaurant operator’s stock valued at $436,000 after purchasing an additional 4,029 shares during the period. Finally, BNP Paribas Arbitrage SA lifted its position in Sonic by 33.4% during the third quarter. BNP Paribas Arbitrage SA now owns 28,210 shares of the restaurant operator’s stock valued at $718,000 after purchasing an additional 7,070 shares during the period.
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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