Sonic (SONC) Upgraded by Zacks Investment Research to “Hold”

Zacks Investment Research upgraded shares of Sonic (NASDAQ:SONC) from a sell rating to a hold rating in a research report report published on Friday.

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 a number of other reports. Morgan Stanley boosted their price target on shares of Sonic from $31.00 to $34.00 and gave the stock an equal weight rating in a research report on Thursday, September 13th. BidaskClub upgraded shares of Sonic from a buy rating to a strong-buy rating in a research report on Thursday, October 11th. ValuEngine upgraded shares of Sonic from a buy rating to a strong-buy rating in a research report on Wednesday, October 24th. Wedbush initiated coverage on shares of Sonic in a research report on Thursday, September 6th. They set an outperform rating and a $42.00 price target on the stock. Finally, Citigroup downgraded shares of Sonic from a buy rating to a neutral rating and boosted their price target for the stock from $41.00 to $43.50 in a research report on Monday, November 5th. Fifteen analysts have rated the stock with a hold rating, one has issued a buy rating and one has issued a strong buy rating to the company’s stock. The company currently has a consensus rating of Hold and a consensus price target of $36.08.

Sonic stock traded up $0.03 during midday trading on Friday, reaching $43.49. 2,865,030 shares of the stock traded hands, compared to its average volume of 632,559. The firm has a market capitalization of $1.55 billion, a price-to-earnings ratio of 28.80, a PEG ratio of 1.87 and a beta of 1.32. Sonic has a fifty-two week low of $23.22 and a fifty-two week high of $44.87.

Sonic (NASDAQ:SONC) last posted its earnings results on Tuesday, October 16th. The restaurant operator reported $0.52 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.51 by $0.01. The firm had revenue of $111.80 million during the quarter, compared to analyst estimates of $113.22 million. Sonic had a net margin of 16.81% and a negative return on equity of 21.64%. Sonic’s revenue was down 9.5% on a year-over-year basis. During the same period in the previous year, the business posted $0.45 EPS. Research analysts anticipate that Sonic will post 1.64 earnings per share for the current year.

In other Sonic news, insider John H. Budd III sold 89,176 shares of the business’s stock in a transaction dated Monday, October 1st. The shares were sold at an average price of $43.24, for a total transaction of $3,855,970.24. Following the sale, the insider now directly owns 32,065 shares in the company, valued at approximately $1,386,490.60. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Carolyn C. Cummins sold 2,500 shares of the business’s stock in a transaction that occurred on Monday, October 1st. The stock was sold at an average price of $43.31, for a total transaction of $108,275.00. The disclosure for this sale can be found here. 6.24% of the stock is currently owned by insiders.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in SONC. BlueMountain Capital Management LLC bought a new stake in shares of Sonic in the 3rd quarter worth approximately $100,000. Point72 Asset Management L.P. raised its holdings in shares of Sonic by 109.0% in the 2nd quarter. Point72 Asset Management L.P. now owns 4,500 shares of the restaurant operator’s stock worth $155,000 after purchasing an additional 54,500 shares in the last quarter. Engineers Gate Manager LP bought a new stake in shares of Sonic in the 2nd quarter worth approximately $210,000. Oppenheimer & Co. Inc. bought a new stake in shares of Sonic in the 2nd quarter worth approximately $215,000. Finally, Virtu Financial LLC bought a new stake in shares of Sonic in the 3rd quarter worth approximately $215,000. Institutional investors and hedge funds own 89.15% of the company’s stock.

About Sonic

Sonic Corp., through its subsidiaries, operates and franchises a chain of drive-in restaurants in the United States. As of August 31, 2018, the company operated 3,606 Sonic Drive-Ins in 45 states, including 3,427 Drive-Ins owned and operated by franchisees; and 179 Drive-Ins owned and operated by the company.

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