Jersey Mike's (NYSE:JMKE) Short Interest Up 92.2% in August

Key Points

• Jersey Mike’s short interest surged 92.2% in August to 5.57 million shares, representing 1.4% of shares outstanding and 1.6 days to cover.
• Analyst sentiment remains broadly positive: 21 analysts rate the stock Buy and five Hold, producing a “Moderate Buy” consensus and an average price target of $28.35 versus recent trading near $22.51.
• Major shareholders sold heavily during the quarter, including Blackstone II Holdings’ sale of 2.57 million shares and Abu Dhabi Investment Authority’s sale of 382,134 shares; CFO Michele Allen separately purchased 3,000 shares.

Jersey Mike's (NYSE:JMKE - Get Free Report) was the recipient of a large growth in short interest in the month of August. As of August 14th, there was short interest totaling 5,572,621 shares, a growth of 92.2% from the July 30th total of 2,899,476 shares. Currently, 1.4% of the shares of the company are sold short. Based on an average daily volume of 3,385,397 shares, the days-to-cover ratio is currently 1.6 days.

Key Stories Impacting Jersey Mike's

Here are the key news stories impacting Jersey Mike's this week:

• Positive Sentiment: Bank of America’s outlook highlighted Jersey Mike’s store-location strategy, suggesting that disciplined expansion and selecting attractive markets could support continued unit growth. Jersey Mike's store location plan sparks Bank of America outlook
• Positive Sentiment: Loop Capital set a bullish $40 price target, substantially above recent trading levels, reinforcing the potential upside tied to Jersey Mike’s growth strategy. Loop Capital sets $40 Jersey Mike's stock price target
• Positive Sentiment: Tigress Financial initiated coverage of JMKE, adding another research firm to the stock’s expanding analyst base. Recent coverage has generally been favorable, with the broader analyst consensus at “Moderate Buy” and an average target of about $28.35. Tigress Financial initiates Jersey Mike's coverage
• Neutral Sentiment: Zacks Research upgraded Jersey Mike’s to “hold.” The change may reduce downside pressure, but it does not represent a strong bullish endorsement. Zacks upgrades Jersey Mike's to hold
• Negative Sentiment: Blackstone II Holdings sold 2.57 million shares for approximately $56.2 million, reducing its disclosed position by 94.71%. The large disposition could weigh on sentiment and add near-term share supply. Blackstone II sells Jersey Mike's shares
• Negative Sentiment: Abu Dhabi Investment Authority sold 382,134 shares worth approximately $8.35 million, trimming its stake by 1.06%. Although relatively modest, the sale adds to concerns about major-holder selling. Abu Dhabi Investment Authority SEC filing

Insider Activity

In related news, CFO Michele Allen purchased 3,000 shares of Jersey Mike's stock in a transaction that occurred on Friday, July 31st. The stock was bought at an average price of $23.00 per share, for a total transaction of $69,000.00. Following the completion of the transaction, the chief financial officer owned 1,500 shares in the company, valued at $34,500. This represents a -200.00% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, major shareholder Abu Dhabi Investment Authority sold 382,134 shares of the firm's stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $21.85, for a total transaction of $8,349,627.90. Following the sale, the insider owned 35,732,138 shares of the company's stock, valued at $780,747,215.30. This trade represents a 1.06% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders bought 31,584 shares of company stock worth $726,432 and sold 9,938,318 shares worth $217,152,248.

Jersey Mike's Trading Up 2.3%

Jersey Mike's stock traded up $0.50 during mid-day trading on Friday, reaching $22.51. The company's stock had a trading volume of 1,768,902 shares, compared to its average volume of 3,185,945. Jersey Mike's has a 12-month low of $20.63 and a 12-month high of $24.99.

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on JMKE shares. JPMorgan Chase & Co. assumed coverage on shares of Jersey Mike's in a report on Monday, August 24th. They issued an "overweight" rating and a $26.00 price target on the stock. Jefferies Financial Group began coverage on Jersey Mike's in a report on Monday, August 24th. They set a "buy" rating and a $29.00 price objective for the company. Piper Sandler initiated coverage on Jersey Mike's in a research report on Monday, August 24th. They issued an "overweight" rating and a $29.00 target price for the company. Morgan Stanley initiated coverage on Jersey Mike's in a research note on Monday, August 24th. They issued an "overweight" rating and a $29.00 target price on the stock. Finally, Bank of America began coverage on Jersey Mike's in a research note on Monday, August 24th. They set a "buy" rating and a $27.00 price target for the company. Twenty-one analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $28.35.

About Jersey Mike's

We are Jersey Mike's: A high-growth franchisor of fast casual, submarine-style sandwich restaurants specializing in authentic, hand-crafted, craveable subs. Built over 70 years on one uncompromising belief – that a truly great sub sandwich can change your day and that a truly great brand changes its community – Jersey Mike's is now one of the largest and fastest-growing limited-service restaurant brands based on U.S. systemwide sales and unit growth, with 3,300 stores across all 50 states and two countries – nearly all of which are franchised.

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