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

Jack in the Box Inc. (NASDAQ:JACK) gapped up prior to trading 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 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.71 by $0.21. The firm had revenue of $469.44 million for the quarter, compared to the consensus estimate of $470.47 million. Jack in the Box had a negative return on equity of 15.79% and a negative net margin of 2.34%.

Jack in the Box Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, April 8th. Investors of record on Thursday, March 20th will be given a $0.44 dividend. The ex-dividend date is Thursday, March 20th. This represents a $1.76 dividend on an annualized basis and a yield of 4.64%. Jack in the Box’s payout ratio is -90.26%.

Wall Street Analyst Weigh In

A number of research analysts have issued reports on the stock. Truist Financial cut their target price on shares of Jack in the Box from $57.00 to $51.00 and set a “buy” rating on the stock in a research report on Wednesday. UBS Group reduced their price objective on shares of Jack in the Box from $50.00 to $44.00 and set a “neutral” rating on the stock in a research note on Tuesday, January 7th. Northcoast Research cut shares of Jack in the Box from a “buy” rating to a “neutral” rating in a research report on Thursday, November 14th. TD Securities reissued a “hold” rating and issued a $42.00 price target on shares of Jack in the Box in a research note on Wednesday. Finally, Wedbush cut Jack in the Box from an “outperform” rating to a “neutral” rating and decreased their price objective for the stock from $50.00 to $40.00 in a research note on Friday, February 21st. Two equities research analysts have rated the stock with a sell rating, ten have issued a hold rating and six have given a buy rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $49.88.

Insider Activity at Jack in the Box

In other Jack in the Box news, SVP Sarah L. Super sold 1,688 shares of Jack in the Box stock in a transaction that occurred on Monday, December 23rd. The shares were sold at an average price of $40.52, for a total value of $68,397.76. Following the transaction, the senior vice president now owns 16,815 shares of the company’s stock, valued at approximately $681,343.80. The trade was a 9.12 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. In the last three months, insiders sold 2,190 shares of company stock worth $92,961. 1.40% of the stock is owned by company insiders.

Institutional Investors Weigh In On Jack in the Box

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Quadrant Capital Group LLC boosted its stake in Jack in the Box by 96.7% in the 4th quarter. Quadrant Capital Group LLC now owns 899 shares of the restaurant operator’s stock worth $37,000 after purchasing an additional 442 shares during the period. Public Employees Retirement System of Ohio bought a new stake in shares of Jack in the Box in the fourth quarter valued at about $40,000. DekaBank Deutsche Girozentrale acquired a new position in shares of Jack in the Box during the third quarter worth about $41,000. GAMMA Investing LLC grew its holdings in shares of Jack in the Box by 229.7% during the fourth quarter. GAMMA Investing LLC now owns 1,055 shares of the restaurant operator’s stock worth $44,000 after buying an additional 735 shares in the last quarter. Finally, KBC Group NV raised its position in Jack in the Box by 99.5% in the 4th quarter. KBC Group NV now owns 1,235 shares of the restaurant operator’s stock valued at $51,000 after buying an additional 616 shares during the last quarter. 99.79% of the stock is currently owned by institutional investors and hedge funds.

Jack in the Box Trading Up 11.8 %

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

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.