No insiders should be allowed to sell within 15 days before earnings come out at any company. That would slow down any major drop due to earnings giving investors more time to analyze the new situation.They should be allowed to buy with a limit on how many shares right up to and through earnings coming out.
"Three executives at fast-food chain Sonic took 451,500 shares to the drive-through window to the tune of $8,258,686, an average of $18.29 each, from Sept. 17 to 26. Chairman, Chief Executive and President J. Clifford Hudson sold 300,000 Sonic"
Something wrong about this even if its legal. You cant have access for insider trading but insiders can trade. Should be some control on insider trading if revenue is going to miss especially right before earnings come out.
Sonic Reports Strong Fourth Fiscal Quarter 2013 Financial Results
Same-Store Sales Trends Position Company for Solid Start to 2014
Business WirePress Release: Sonic Corp. – 9 hours ago..
Sonic Corp. (SONC), the nation's largest chain of drive-in restaurants, today announced results for the fourth quarter and fiscal year ended August 31, 2013.
Key highlights of the company's fourth fiscal quarter included:
• The company's net income was $0.21 per diluted share compared with net income per diluted share of $0.25 in the fourth fiscal quarter of fiscal 2012;
• Excluding certain adjustments, which are detailed below, net income per diluted share increased 20% to $0.30 from $0.25 in the fourth fiscal quarter of 2012; and
• As previously announced, system-wide same-store sales increased 5.9% during the fourth fiscal quarter, consisting of a 6.0% same-store sales increase at franchise drive-ins and an increase of 5.2% at company drive-ins.
Key highlights of the company's fiscal year 2013 included:
• The company's net income was $0.64 per diluted share compared with net income per diluted share of $0.60 in fiscal 2012;
• Excluding certain adjustments, which are detailed below, net income per diluted share increased 20% to $0.72 from $0.60 in fiscal 2012;
• System-wide same-store sales increased 2.3%, consisting of a 2.3% same-store sales increase at franchise drive-ins and an increase of 2.5% at company drive-ins;
• Company drive-in margins improved by 60 basis points; and
• The company purchased $35.5 million in stock representing 6% of the company’s outstanding shares.
“Strong same-store sales during our summer quarter highlighted the strength and momentum of our business,” said Cliff Hudson, Chairman, Chief Executive Officer and President. “We are very pleased with our sales and profit performance