Jersey Mike's (NYSE:JMKE) Stock Breaks Above 50-Day Moving Average After Analyst Downgrade

Key Points

• Shares rose 4.9% and moved above the 50-day moving average of $18.84 after Wall Street Zen upgraded Jersey Mike’s from Sell to Hold. Analysts overall rate the stock Moderate Buy, with an average price target of $26.91.
• Jersey Mike’s reported quarterly EPS of $0.23, beating the $0.16 consensus estimate, while revenue rose 10% year over year to $209 million.
• The company declared a $0.35 special dividend, payable November 19. Insiders sold about 5.5 million shares worth $120.8 million over the past 90 days.

Jersey Mike's (NYSE:JMKE - Get Free Report) passed above its 50-day moving average during trading on Tuesday after Wall Street Zen upgraded the stock from a sell rating to a hold rating. The stock has a 50-day moving average of $18.84 and traded as high as $19.88. Jersey Mike's shares last traded at $19.7380, with a volume of 3,532,457 shares.

A number of other research firms also recently issued reports on JMKE. Melius Research began coverage on shares of Jersey Mike's in a report on Thursday, July 30th. They set a "buy" rating and a $30.00 price objective for the company. Sanford C. Bernstein raised their price target on Jersey Mike's from $26.00 to $27.00 and gave the company a "market perform" rating in a research report on Thursday, September 10th. BTIG Research reaffirmed a "buy" rating and set a $28.00 price target on shares of Jersey Mike's in a research note on Thursday, September 10th. TD Cowen reaffirmed a "buy" rating and set a $26.00 price target on shares of Jersey Mike's in a research note on Wednesday, September 9th. Finally, Raymond James Financial assumed coverage on Jersey Mike's in a report on Monday, August 24th. They issued an "outperform" rating and a $29.00 price objective for the company. Twenty-one investment analysts have rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $26.91.

Insider Activity at Jersey Mike's

In related news, major shareholder Holdings L.P. Blackstone II sold 2,572,560 shares of Jersey Mike's stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $21.85, for a total value of $56,210,436.00. Following the transaction, the insider owned 143,699 shares in the company, valued at $3,139,823.15. This trade represents a 94.71% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, major shareholder Submarine Buyer Llc sold 2,572,560 shares of the business's stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $21.85, for a total transaction of $56,210,436.00. Following the completion of the sale, the insider directly owned 143,699 shares of the company's stock, valued at $3,139,823.15. This represents a 94.71% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 5,527,254 shares of company stock valued at $120,770,500.

Jersey Mike's Stock Up 4.9%

The company has a debt-to-equity ratio of 1.15, a current ratio of 2.81 and a quick ratio of 2.81. The firm has a fifty day moving average price of $18.84.

Jersey Mike's (NYSE:JMKE - Get Free Report) last issued its earnings results on Wednesday, October 28th. The company reported $0.23 earnings per share for the quarter, beating the consensus estimate of $0.16 by $0.07. The company had revenue of $209.00 million for the quarter. Jersey Mike's's revenue was up 10.0% compared to the same quarter last year. As a group, research analysts expect that Jersey Mike's will post 0.64 EPS for the current year.

Jersey Mike's Announces Dividend

The business also recently disclosed a special dividend, which will be paid on Thursday, November 19th. Shareholders of record on Thursday, November 5th will be given a $0.35 dividend. The ex-dividend date is Thursday, November 5th.

About Jersey Mike's

Jersey Mike's, commonly known as Jersey Mike's Subs, is a fast-casual restaurant company focused on submarine sandwiches and related food offerings. Its menu includes hot and cold subs, wraps, salads, beverages and desserts, with catering services also available at many locations.

The business operates primarily through a franchise-based model under the Jersey Mike's Subs brand. Restaurants are known for preparing sandwiches to order, including sliced meats and cheeses, fresh vegetables and the company's signature “Mike's Way” preparation.

Jersey Mike's traces its roots to 1956, when the original submarine shop opened in Point Pleasant, New Jersey.

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