Jack In The Box Inc. (JACK) Stock Rating Lowered by Zacks Investment Research
Jack In The Box Inc. (NASDAQ:JACK) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a research report issued to clients and investors on Monday.
According to Zacks, “Jack in the Box’s Qdoba brand has been driving growth at the company over the past few quarters. However, of late, the company has been experiencing moderated comps growth at its namesake Jack in the Box restaurants due to increased competitive pressure. Even so, the company’s enhanced focus on franchising and rewarding its shareholders through share repurchases and dividends bode well. Also, various sales initiatives like regular menu innovation, increased marketing efforts, remodeling along with offering catering options should drive top-line growth. Meanwhile, the company has a mixed record of earnings surprises in the recent quarters. However, increased marketing initiatives might keep profits under pressure. The company’s fiscal Q4 comps guidance also raises concerns. Estimates too have been mostly going down ahead of its Q4 earnings release.”
A number of other brokerages have also commented on JACK. Wedbush reiterated an “outperform” rating and issued a $115.00 price target on shares of Jack In The Box in a research note on Saturday, October 8th. Wells Fargo & Co. reiterated an “outperform” rating and issued a $90.50 price target (up previously from $82.50) on shares of Jack In The Box in a research note on Thursday, August 4th. Robert W. Baird reiterated an “outperform” rating on shares of Jack In The Box in a research note on Thursday, September 8th. Oppenheimer Holdings Inc. reiterated an “outperform” rating and issued a $115.00 price target (up previously from $105.00) on shares of Jack In The Box in a research note on Monday, September 26th. Finally, Jefferies Group upped their price target on shares of Jack In The Box from $100.00 to $112.00 and gave the company a “buy” rating in a research note on Friday, August 5th. One analyst has rated the stock with a sell rating, four have assigned a hold rating and eleven have given a buy rating to the company. Jack In The Box has an average rating of “Buy” and an average price target of $101.53.
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Jack In The Box (NASDAQ:JACK) traded up 0.22% during mid-day trading on Monday, hitting $95.74. 112,465 shares of the stock traded hands. The firm has a market cap of $3.13 billion, a P/E ratio of 29.12 and a beta of 0.41. The firm’s 50-day moving average price is $97.73 and its 200-day moving average price is $85.42. Jack In The Box has a 52 week low of $61.78 and a 52 week high of $102.68.
Jack In The Box (NASDAQ:JACK) last released its quarterly earnings data on Wednesday, August 3rd. The company reported $1.07 earnings per share for the quarter, topping the consensus estimate of $0.87 by $0.20. The company had revenue of $368.94 million for the quarter, compared to analyst estimates of $367.52 million. Jack In The Box had a net margin of 7.41% and a negative return on equity of 120.29%. Jack In The Box’s revenue for the quarter was up 2.6% compared to the same quarter last year. During the same period in the previous year, the business earned $0.76 EPS. On average, equities analysts forecast that Jack In The Box will post $3.73 earnings per share for the current fiscal year.
In related news, VP Carol A. Diraimo sold 2,000 shares of the company’s stock in a transaction that occurred on Thursday, September 22nd. The shares were sold at an average price of $100.00, for a total transaction of $200,000.00. Following the completion of the transaction, the vice president now directly owns 16,059 shares in the company, valued at approximately $1,605,900. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, CFO Jerry P. Rebel sold 42,362 shares of the company’s stock in a transaction that occurred on Monday, September 19th. The stock was sold at an average price of $99.00, for a total transaction of $4,193,838.00. Following the transaction, the chief financial officer now owns 119,835 shares of the company’s stock, valued at $11,863,665. The disclosure for this sale can be found here. Corporate insiders own 2.00% of the company’s stock.
A number of institutional investors have recently added to or reduced their stakes in the company. Eagle Asset Management Inc. boosted its position in Jack In The Box by 14.3% in the second quarter. Eagle Asset Management Inc. now owns 655,089 shares of the company’s stock worth $56,285,000 after buying an additional 82,066 shares in the last quarter. Suvretta Capital Management LLC bought a new position in Jack In The Box during the first quarter worth about $30,683,000. AQR Capital Management LLC boosted its position in Jack In The Box by 6.4% in the second quarter. AQR Capital Management LLC now owns 421,677 shares of the company’s stock worth $36,230,000 after buying an additional 25,261 shares in the last quarter. Advisory Research Inc. bought a new position in Jack In The Box during the second quarter worth about $34,541,000. Finally, Melvin Capital Management LP boosted its position in Jack In The Box by 6.7% in the second quarter. Melvin Capital Management LP now owns 400,000 shares of the company’s stock worth $34,368,000 after buying an additional 25,000 shares in the last quarter. Institutional investors and hedge funds own 98.44% of the company’s stock.
About Jack In The Box
Jack in the Box Inc is a restaurant company. The Company operates and franchises approximately 2,910 Jack in the Box quick-service restaurants (QSR) and Qdoba Mexican Eats fast-casual restaurants (Qdoba). Its segments are Jack in the Box and Qdoba Restaurant operations. It operates and franchises approximately 2,250 Jack in the Box restaurants, primarily in the western and southern United States, including one in Guam, over 660 Qdoba restaurants across the United States, and approximately four in Canada.
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