Jack In The Box (NASDAQ:JACK) Lowered to "Sell" Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Jack In The Box from “hold” to “sell,” adding to a generally cautious analyst outlook on the stock.
• Other firms have also turned less optimistic, with UBS and TD Cowen cutting price targets and Guggenheim downgrading the shares; overall, the consensus rating is now Hold with a target price of $15.84.
• Despite the downgrade, the stock rose 7.7% and opened at $12.45, while the company’s latest earnings beat EPS estimates but showed a 24.5% year-over-year revenue decline.

Jack In The Box (NASDAQ:JACK - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "hold" rating to a "sell" rating in a report released on Saturday.

Several other research analysts also recently weighed in on the company. UBS Group lowered their target price on Jack In The Box from $23.00 to $14.00 and set a "neutral" rating on the stock in a research note on Thursday, May 14th. Oppenheimer reduced their price target on Jack In The Box from $27.00 to $22.00 and set an "outperform" rating for the company in a report on Thursday, May 14th. Sanford C. Bernstein set a $15.00 price target on Jack In The Box in a report on Thursday, May 14th. Guggenheim cut Jack In The Box from a "buy" rating to a "neutral" rating in a report on Thursday. Finally, TD Cowen reduced their price target on Jack In The Box from $16.00 to $12.00 and set a "hold" rating for the company in a report on Tuesday, April 14th. Three research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Hold" and a consensus target price of $15.84.

Jack In The Box Trading Up 7.7%

Shares of JACK stock opened at $12.45 on Friday. The business's 50 day moving average is $11.75 and its two-hundred day moving average is $16.30. Jack In The Box has a twelve month low of $8.91 and a twelve month high of $25.34. The company has a market capitalization of $237.42 million, a P/E ratio of 6.73, a price-to-earnings-growth ratio of 0.63 and a beta of 1.45.

Jack In The Box (NASDAQ:JACK - Get Free Report) last announced its earnings results on Wednesday, May 13th. The restaurant operator reported $0.76 earnings per share for the quarter, beating the consensus estimate of $0.74 by $0.02. Jack In The Box had a negative return on equity of 6.34% and a net margin of 2.82%.The company had revenue of $254.26 million for the quarter, compared to the consensus estimate of $256.55 million. During the same period last year, the business posted $1.20 EPS. The company's revenue was down 24.5% on a year-over-year basis. As a group, equities analysts predict that Jack In The Box will post 3.44 earnings per share for the current fiscal year.

Insider Transactions at Jack In The Box

In other news, Director Guillermo Diaz, Jr. acquired 5,962 shares of Jack In The Box stock in a transaction that occurred on Thursday, May 28th. The stock was purchased at an average cost of $11.51 per share, with a total value of $68,622.62. Following the completion of the acquisition, the director owned 20,692 shares in the company, valued at $238,164.92. This trade represents a 40.48% increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Corporate insiders own 1.40% of the company's stock.

Hedge Funds Weigh In On Jack In The Box

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Callodine Capital Management LP raised its holdings in Jack In The Box by 3.5% during the first quarter. Callodine Capital Management LP now owns 1,760,470 shares of the restaurant operator's stock worth $17,024,000 after purchasing an additional 59,966 shares during the last quarter. Nantahala Capital Management LLC grew its position in shares of Jack In The Box by 44.3% in the fourth quarter. Nantahala Capital Management LLC now owns 865,990 shares of the restaurant operator's stock valued at $16,411,000 after purchasing an additional 265,990 shares during the period. Marshall Wace LLP grew its position in shares of Jack In The Box by 192.9% in the third quarter. Marshall Wace LLP now owns 744,141 shares of the restaurant operator's stock valued at $14,712,000 after purchasing an additional 490,071 shares during the period. Charles Schwab Investment Management Inc. grew its position in shares of Jack In The Box by 18.0% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 639,060 shares of the restaurant operator's stock valued at $12,110,000 after purchasing an additional 97,326 shares during the period. Finally, Bank of America Corp DE grew its position in shares of Jack In The Box by 21.2% in the first quarter. Bank of America Corp DE now owns 622,779 shares of the restaurant operator's stock valued at $6,022,000 after purchasing an additional 108,865 shares during the period. 99.79% of the stock is owned by institutional investors and hedge funds.

Jack In The Box Company Profile

Jack in the Box NASDAQ: JACK is a publicly traded quick-service restaurant company best known for its Jack in the Box brand of fast-food restaurants. Founded in 1951 by Robert O. Peterson and headquartered in San Diego, California, the company has operated for decades as a franchisor and operator of drive-thru and dine-in restaurants. Its business model combines company-owned locations with franchise arrangements, and the company focuses on building brand recognition through menu innovation, marketing and service convenience.

The company’s core offerings center on a broad fast-food menu that includes hamburgers (notably the Jumbo Jack), tacos, breakfast items, sandwiches, salads, sides and specialty limited-time items.

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