Jack In The Box (NASDAQ:JACK) Shares Pass Above Two Hundred Day Moving Average - Here's Why

Key Points

• Jack In The Box shares moved above their 200-day moving average during Wednesday trading, briefly reaching $15.22 before closing at $14.24. The 200-day average is $15.11.
• Analyst sentiment remains cautious after multiple firms cut targets or downgraded the stock, leaving the consensus rating at Hold with an average price target of $15.84.
• Recent earnings were mixed: the company beat EPS expectations at $0.76, but revenue fell 24.5% year over year and came in slightly below estimates.

Jack In The Box Inc. (NASDAQ:JACK - Get Free Report)'s share price passed above its two hundred day moving average during trading on Wednesday . The stock has a two hundred day moving average of $15.11 and traded as high as $15.22. Jack In The Box shares last traded at $14.24, with a volume of 613,683 shares traded.

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on JACK shares. UBS Group decreased their price objective on shares of Jack In The Box from $23.00 to $14.00 and set a "neutral" rating for the company in a research report on Thursday, May 14th. Guggenheim cut Jack In The Box from a "buy" rating to a "neutral" rating in a research report on Thursday, May 28th. Citigroup cut their price target on Jack In The Box from $15.00 to $14.00 and set a "neutral" rating for the company in a research note on Thursday, May 14th. Wall Street Zen cut Jack In The Box from a "hold" rating to a "sell" rating in a report on Saturday, May 30th. Finally, Weiss Ratings upgraded Jack In The Box from a "sell (e+)" rating to a "sell (d)" rating in a research report on Thursday, May 14th. Three investment analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and an average price target of $15.84.

Jack In The Box Stock Down 3.8%

The stock's 50-day simple moving average is $13.33 and its two-hundred day simple moving average is $15.11. The company has a market capitalization of $271.56 million, a price-to-earnings ratio of 7.70, a PEG ratio of 0.81 and a beta of 1.38.

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 (EPS) for the quarter, beating the consensus estimate of $0.74 by $0.02. The business had revenue of $254.26 million for the quarter, compared to analyst estimates of $256.55 million. Jack In The Box had a net margin of 2.82% and a negative return on equity of 6.34%. The company's revenue for the quarter was down 24.5% compared to the same quarter last year. During the same quarter last year, the business earned $1.20 earnings per share. On average, sell-side analysts forecast that Jack In The Box Inc. will post 3.42 EPS for the current year.

Insiders Place Their Bets

In other news, Director Guillermo Diaz, Jr. acquired 5,962 shares of the stock in a transaction that occurred on Thursday, May 28th. The shares were bought at an average cost of $11.51 per share, for a total transaction of $68,622.62. Following the acquisition, the director owned 20,692 shares in the company, valued at approximately $238,164.92. This represents a 40.48% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Corporate insiders own 1.40% of the company's stock.

Institutional Trading of Jack In The Box

A number of institutional investors have recently made changes to their positions in JACK. Royal Bank of Canada boosted its stake in Jack In The Box by 5.9% during the 1st quarter. Royal Bank of Canada now owns 12,035 shares of the restaurant operator's stock worth $327,000 after purchasing an additional 671 shares during the last quarter. US Bancorp DE grew its holdings in shares of Jack In The Box by 96.7% during the third quarter. US Bancorp DE now owns 1,420 shares of the restaurant operator's stock worth $28,000 after buying an additional 698 shares in the last quarter. Allworth Financial LP raised its position in shares of Jack In The Box by 322.6% in the fourth quarter. Allworth Financial LP now owns 1,475 shares of the restaurant operator's stock valued at $28,000 after buying an additional 1,126 shares during the last quarter. Russell Investments Group Ltd. raised its position in shares of Jack In The Box by 43.4% in the fourth quarter. Russell Investments Group Ltd. now owns 4,507 shares of the restaurant operator's stock valued at $85,000 after buying an additional 1,363 shares during the last quarter. Finally, Manning & Napier Advisors LLC lifted its stake in shares of Jack In The Box by 0.4% in the first quarter. Manning & Napier Advisors LLC now owns 376,343 shares of the restaurant operator's stock worth $3,639,000 after buying an additional 1,677 shares in the last quarter. 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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