Ryan Lee Ostrom, Executive Vice President and Chief Customer and Digital Officer at Jack in the Box Inc. (NASDAQ:), recently sold a portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Ostrom sold a total of 2,459 shares on December 23, 2024, at a price of $40.52 per share, totaling approximately $99,638. The transaction comes as the stock trades near its 52-week low of $38.12, having declined about 50% over the past year. InvestingPro analysis indicates the stock is currently trading below its Fair Value.
The shares were disposed of to cover tax obligations related to the vesting of performance shares and restricted stock units. Following these transactions, Ostrom retains direct ownership of 29,648 shares in the company. Earlier, on December 20, he acquired 4,363 shares at no cost, associated with the achievement of performance goals over a three-year period. Despite recent challenges, the company maintains a notable 4.39% dividend yield and has sustained dividend payments for 11 consecutive years. For deeper insights into insider transactions and comprehensive financial analysis, including 12 additional ProTips, check out the full research report on InvestingPro.
In other recent news, Jack in the Box, the fast-food restaurant chain, has been the subject of several adjustments by financial services firms. Stifel revised Jack in the Box’s 12-month price target down to $52.00, reflecting anticipated increases in Selling, General, and Administrative (SG&A) expenses and pressure on restaurant margins. The firm also adjusted its earnings per share (EPS) estimate for fiscal year 2025 to $5.36, slightly below the consensus estimate of $5.37.
Similarly, TD Cowen maintained a Hold rating on Jack in the Box shares with a steady price target of $50.00, while RBC Capital Markets reduced its price target from $70.00 to $65.00, maintaining an Outperform rating. Both firms highlighted potential challenges ahead, including competitive pressure from rivals like McDonald’s (NYSE:) and the impact of increased wages in California.
Goldman Sachs also adjusted its outlook, reducing the price target to $43.00 from $47.00 and maintaining a Sell rating. The firm noted the need for more definitive signs of unit growth and same-store sales growth improvement before changing its stance.
These adjustments come in the wake of Jack in the Box’s recent earnings reports and projections for fiscal 2025, which reflect ongoing challenges in same-store sales growth and increased expenses due to new store openings. Despite these challenges, the company has made significant strides in digital expansion, new market penetration, and restaurant development, signing agreements for 464 new restaurants.
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