Investors Purchase High Volume of Jack In The Box Call Options (NASDAQ:JACK)

by · The Markets Daily

Jack In The Box Inc. (NASDAQ:JACKGet Free Report) saw some unusual options trading activity on Wednesday. Investors acquired 5,074 call options on the company. This represents an increase of approximately 644% compared to the average volume of 682 call options.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on the company. Morgan Stanley reduced their target price on Jack In The Box from $19.00 to $15.00 and set an “equal weight” rating on the stock in a report on Tuesday, April 21st. Royal Bank Of Canada dropped their price target on Jack In The Box from $17.00 to $16.00 and set an “outperform” rating for the company in a research note on Thursday, May 14th. TD Cowen cut their price objective on Jack In The Box from $16.00 to $12.00 and set a “hold” rating on the stock in a report on Tuesday, April 14th. Jefferies Financial Group set a $12.50 price objective on Jack In The Box in a research note on Thursday, May 14th. Finally, Wall Street Zen cut Jack In The Box from a “hold” rating to a “sell” rating in a report on Saturday, May 30th. Three equities research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and an average target price of $15.84.

Read Our Latest Stock Report on Jack In The Box

Jack In The Box Stock Performance

Jack In The Box stock traded up $1.75 during trading on Wednesday, reaching $13.33. 773,275 shares of the company’s stock were exchanged, compared to its average volume of 758,550. The company’s 50-day moving average is $12.32 and its two-hundred day moving average is $15.74. Jack In The Box has a 52-week low of $8.91 and a 52-week high of $25.34. The firm has a market cap of $254.26 million, a price-to-earnings ratio of 7.18, a PEG ratio of 0.63 and a beta of 1.44.

Jack In The Box (NASDAQ:JACKGet Free Report) last announced its quarterly earnings results on Wednesday, May 13th. The restaurant operator reported $0.76 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.74 by $0.02. Jack In The Box had a negative return on equity of 6.34% and a net margin of 2.82%.The firm had revenue of $254.26 million during the quarter, compared to the consensus estimate of $256.55 million. During the same period in the prior year, the firm earned $1.20 EPS. The firm’s quarterly revenue was down 24.5% compared to the same quarter last year. Analysts anticipate that Jack In The Box will post 3.41 EPS for the current year.

Insider Buying and Selling at Jack In The Box

In related news, Director Guillermo Diaz, Jr. acquired 5,962 shares of the stock in a transaction dated Thursday, May 28th. The stock was bought at an average cost of $11.51 per share, with a total value of $68,622.62. Following the purchase, the director directly owned 20,692 shares of the company’s stock, valued at approximately $238,164.92. This represents a 40.48% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 1.40% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Jack In The Box

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Callodine Capital Management LP raised its stake in shares of Jack In The Box by 3.5% during the first quarter. Callodine Capital Management LP now owns 1,760,470 shares of the restaurant operator’s stock valued at $17,024,000 after purchasing an additional 59,966 shares during the period. Nantahala Capital Management LLC boosted its stake in shares of Jack In The Box by 44.3% in the fourth quarter. Nantahala Capital Management LLC now owns 865,990 shares of the restaurant operator’s stock valued at $16,411,000 after purchasing an additional 265,990 shares during the period. Marshall Wace LLP grew its holdings in Jack In The Box by 192.9% during the 3rd quarter. Marshall Wace LLP now owns 744,141 shares of the restaurant operator’s stock valued at $14,712,000 after purchasing an additional 490,071 shares in the last quarter. Charles Schwab Investment Management Inc. grew its holdings in Jack In The Box by 18.0% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 639,060 shares of the restaurant operator’s stock valued at $12,110,000 after purchasing an additional 97,326 shares in the last quarter. Finally, Bank of America Corp DE increased its stake in Jack In The Box by 21.2% during the 1st quarter. Bank of America Corp DE now owns 622,779 shares of the restaurant operator’s stock worth $6,022,000 after buying an additional 108,865 shares during the period. 99.79% of the stock is owned by institutional investors and hedge funds.

About Jack In The Box

(Get Free Report)

Jack in the Box (NASDAQ: JACK) is a publicly traded quick-service restaurant company best known for its Jack in the Box brand of fast-food restaurants. Founded in 1951 by Robert O. Peterson and headquartered in San Diego, California, the company has operated for decades as a franchisor and operator of drive-thru and dine-in restaurants. Its business model combines company-owned locations with franchise arrangements, and the company focuses on building brand recognition through menu innovation, marketing and service convenience.

The company’s core offerings center on a broad fast-food menu that includes hamburgers (notably the Jumbo Jack), tacos, breakfast items, sandwiches, salads, sides and specialty limited-time items.

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