Jack in the Box (NASDAQ:JACK) Shares Gap Up Following Strong Earnings

Jack in the Box Inc. (NASDAQ:JACK) gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $33.95, but opened at $37.89. Jack in the Box shares last traded at $39.35, with a volume of 537,515 shares changing hands.

The restaurant operator reported $1.92 EPS for the quarter, topping analysts’ consensus estimates of $1.71 by $0.21. The company had revenue of $469.44 million during the quarter, compared to the consensus estimate of $470.47 million. Jack in the Box had a negative net margin of 2.34% and a negative return on equity of 15.79%.

Jack in the Box Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, April 8th. Shareholders of record on Thursday, March 20th will be given a dividend of $0.44 per share. This represents a $1.76 annualized dividend and a dividend yield of 4.64%. The ex-dividend date is Thursday, March 20th. Jack in the Box’s dividend payout ratio (DPR) is -90.26%.

Wall Street Analyst Weigh In

JACK has been the subject of several recent analyst reports. Oppenheimer cut their price objective on Jack in the Box from $60.00 to $52.00 and set an “outperform” rating for the company in a report on Tuesday, January 7th. StockNews.com cut shares of Jack in the Box from a “hold” rating to a “sell” rating in a research note on Wednesday, January 15th. Morgan Stanley decreased their price objective on shares of Jack in the Box from $53.00 to $45.00 and set an “equal weight” rating for the company in a research report on Tuesday, January 21st. Deutsche Bank Aktiengesellschaft dropped their target price on shares of Jack in the Box from $51.00 to $46.00 and set a “hold” rating on the stock in a report on Thursday, November 21st. Finally, Guggenheim reduced their price target on Jack in the Box from $95.00 to $60.00 and set a “buy” rating for the company in a report on Wednesday, November 20th. Two analysts have rated the stock with a sell rating, ten have given a hold rating and six have issued a buy rating to the stock. According to MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $49.88.

Insider Transactions at Jack in the Box

In related news, SVP Sarah L. Super sold 1,688 shares of the business’s stock in a transaction on Monday, December 23rd. The stock was sold at an average price of $40.52, for a total value of $68,397.76. Following the completion of the sale, the senior vice president now directly owns 16,815 shares in the company, valued at $681,343.80. The trade was a 9.12 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Over the last quarter, insiders have sold 2,190 shares of company stock worth $92,961. Company insiders own 1.40% of the company’s stock.

Institutional Investors Weigh In On Jack in the Box

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Allspring Global Investments Holdings LLC grew its stake in shares of Jack in the Box by 3.6% in the fourth quarter. Allspring Global Investments Holdings LLC now owns 738,297 shares of the restaurant operator’s stock valued at $30,244,000 after acquiring an additional 25,881 shares in the last quarter. IPG Investment Advisors LLC grew its position in shares of Jack in the Box by 59.2% during the 4th quarter. IPG Investment Advisors LLC now owns 440,619 shares of the restaurant operator’s stock worth $18,347,000 after purchasing an additional 163,834 shares in the last quarter. Charles Schwab Investment Management Inc. grew its position in shares of Jack in the Box by 12.3% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 436,361 shares of the restaurant operator’s stock worth $18,170,000 after purchasing an additional 47,851 shares in the last quarter. Invenomic Capital Management LP increased its holdings in shares of Jack in the Box by 40.7% during the fourth quarter. Invenomic Capital Management LP now owns 356,757 shares of the restaurant operator’s stock worth $14,855,000 after purchasing an additional 103,176 shares during the period. Finally, Clearline Capital LP raised its position in shares of Jack in the Box by 4.1% in the third quarter. Clearline Capital LP now owns 260,730 shares of the restaurant operator’s stock valued at $12,134,000 after buying an additional 10,304 shares in the last quarter. Institutional investors and hedge funds own 99.79% of the company’s stock.

Jack in the Box Stock Up 11.8 %

The firm has a market capitalization of $715.40 million, a P/E ratio of -19.46, a PEG ratio of 1.29 and a beta of 1.94. The firm has a 50 day moving average of $39.55 and a 200-day moving average of $44.56.

About Jack in the Box

Jack in the Box Inc operates and franchises Jack in the Box and Del Taco quick-service restaurants in the United States. The company was founded in 1951 and is headquartered in San Diego, California.