Gabelli Funds LLC acquired a new position in shares of Sonic Co. (NASDAQ:SONC) during the 3rd quarter, Holdings Channel reports. The firm acquired 193,005 shares of the restaurant operator’s stock, valued at approximately $8,365,000.
Other institutional investors have also recently added to or reduced their stakes in the company. Point72 Asset Management L.P. increased its stake in shares of Sonic by 109.0% during 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 during the last quarter. Engineers Gate Manager LP acquired a new position in shares of Sonic during the 2nd quarter worth about $210,000. Oppenheimer & Co. Inc. acquired a new position in shares of Sonic during the 2nd quarter worth about $215,000. Parametrica Management Ltd acquired a new position in shares of Sonic during the 2nd quarter worth about $221,000. Finally, Edmonds Duncan Registered Investment Advisors LLC acquired a new position in shares of Sonic during the 2nd quarter worth about $243,000.
Shares of SONC opened at $43.32 on Friday. Sonic Co. has a 52 week low of $23.22 and a 52 week high of $44.87. The stock has a market capitalization of $1.55 billion, a P/E ratio of 29.07, a P/E/G ratio of 1.87 and a beta of 1.32.
Sonic (NASDAQ:SONC) last announced its quarterly earnings results on Tuesday, October 16th. The restaurant operator reported $0.52 EPS for the quarter, beating the Zacks’ consensus estimate of $0.51 by $0.01. Sonic had a net margin of 16.81% and a negative return on equity of 21.64%. The business had revenue of $111.80 million for the quarter, compared to analyst estimates of $113.22 million. During the same quarter in the prior year, the business earned $0.45 EPS. Sonic’s quarterly revenue was down 9.5% on a year-over-year basis. Equities analysts forecast that Sonic Co. will post 1.64 earnings per share for the current year.
Sonic announced that its board has initiated a share buyback plan on Wednesday, August 8th that allows the company to repurchase $500.00 million in shares. This repurchase authorization allows the restaurant operator to buy up to 40.5% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company’s leadership believes its stock is undervalued.
SONC has been the topic of a number of research reports. Telsey Advisory Group upped their price target on shares of Sonic from $32.00 to $40.00 and gave the company a “market perform” rating in a research note on Wednesday, September 12th. BidaskClub lowered shares of Sonic from a “strong-buy” rating to a “buy” rating in a research note on Wednesday, August 1st. Zacks Investment Research lowered shares of Sonic from a “buy” rating to a “hold” rating in a research note on Friday, July 20th. Barclays upgraded shares of Sonic from an “underweight” rating to an “equal weight” rating in a research note on Wednesday, September 26th. Finally, Piper Jaffray Companies lowered shares of Sonic from an “overweight” rating to a “neutral” rating in a research note on Tuesday, September 25th. Fourteen research analysts have rated the stock with a hold rating, two have given a buy rating and one has given a strong buy rating to the stock. The stock currently has an average rating of “Hold” and an average price target of $36.08.
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 value of $3,855,970.24. Following the completion of the sale, the insider now owns 32,065 shares of the company’s stock, valued at approximately $1,386,490.60. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Carolyn C. Cummins sold 2,500 shares of the business’s stock in a transaction dated Monday, October 1st. The shares were 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. Insiders own 6.24% of the company’s stock.
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Sonic Company Profile
Sonic Corp. operates and franchises a chain of quick-service drive-in restaurants in the United States. As of August 31, 2017, the company operated 3,593 Sonic Drive-Ins in 45 states, of which 228 were owned and operated by the company and 3,365 were owned and operated by franchisees. The company also owns and leases 135 properties; and sublease 53 properties to franchisees and other parties.
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