SAN DIEGO—Darin Harris, CEO and director of Jack in the Box Inc. (NASDAQ:), recently reported several stock transactions involving the company’s common stock. According to the latest SEC filing, Harris sold a total of 14,671 shares on December 23, 2024, at a price of $40.52 per share. This transaction generated approximately $594,468. The sale comes as Jack in the Box shares trade near their 52-week low of $38.12, having fallen roughly 50% over the past year.
The sales were part of automatic sales transactions to cover tax withholding obligations by granting performance shares and restricted stock units. Following these transactions, Harris retains direct ownership of 138,803 shares in the company. According to InvestingPro analysis, Jack in the Box currently appears undervalued, with 12 additional exclusive insights available to subscribers.
Previously, on December 20, 2024, Harris acquired 20,726 shares at no cost, as part of the company’s stock incentive plan to achieve pre-established performance goals. This acquisition increased its total holdings before subsequent sales. Despite the current challenges, analysts expect the company to return to profitability this year, according to data from InvestingPro.
In other recent news, Jack in the Box reported its fourth-quarter earnings for fiscal 2024, beating estimates with earnings of $1.16 per share, but revenue fell short by $349.3 million. The company’s earnings per share guidance for fiscal 2025 is projected to be between $5.05 and $5.45. Stifel, TD Cowen, RBC Capital Markets and Goldman Sachs, all financial services companies, have revised their outlooks for Jack in the Box. Stifel lowered its 12-month price target to $52.00, TD Cowen kept a stable price target of $50.00, RBC Capital Markets lowered its price target from $70.00 to $65.00, and Goldman Sachs cut its price. target at $43.00 from $47.00.
Despite these adjustments, all companies maintained their respective ratings on the stock. The revisions were due to factors such as an expected increase in selling, general and administrative (SG&A) expenses, pressure on restaurant margins, the impact of rising wages in California and a possible reduction in stock buybacks by the company. The competitive fast food landscape, with major players such as McDonald’s (NYSE:) competing for market share, also influenced these adjustments.
Additionally, Jack in the Box made significant progress in digital expansion, new market penetration and restaurant development: more than 14% of the company’s sales were digital and agreements were signed for 464 new restaurants. Despite these advances, the company also faces cost pressures due to California’s new minimum wage law and inflation. These are recent developments involving the fast food chain, and investors should follow them closely.
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