Steven Piano, Senior Vice President and Chief People Officer at Jack in the Box Inc. (NASDAQ:JACK), recently executed a series of stock transactions involving the company's common stock. On December 20, 2024, Piano acquired 2,910 shares at no cost, following the achievement of performance goals outlined in the company's 2004 Stock Incentive Plan. This acquisition increased his total holdings to 17,016 shares. The transaction comes as JACK trades near its 52-week low of $38.12, with the stock down about 50% over the past year.
Subsequently, on December 23, 2024, Piano sold a total of 1,217 shares at a price of $40.52 per share, generating proceeds of $49,312. This sale was conducted to cover tax obligations related to the vesting of performance shares and restricted stock units. After these transactions, Piano's holdings in Jack in the Box decreased to 15,799 shares. According to InvestingPro analysis, JACK currently offers a 4.39% dividend yield and appears slightly undervalued based on Fair Value calculations, with analyst price targets ranging from $43 to $65.
In other recent news, Jack in the Box has been the subject of several adjustments by financial services firms. Stifel revised its 12-month price target for the company to $52.00, citing concerns about increased 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.
TD Cowen maintained its hold rating on Jack in the Box shares with a steady price target of $50.00. The firm highlighted potential challenges ahead, including competitive pressure from McDonald's (NYSE:MCD) and revised its EPS projections for the company for the years 2025 and 2026.
RBC Capital Markets reduced its price target for Jack In The Box from $70.00 to $65.00, while Goldman Sachs reduced its price target to $43.00 from $47.00. Both firms mentioned the company's challenges with same-store sales growth and increased expenses due to new store openings.
Despite these challenges, Jack in the Box made significant strides in digital expansion, new market penetration, and restaurant development, with over 14% of the company's sales being digital and agreements signed for 464 new restaurants. For fiscal 2025, the company projects an operating EPS between $5.05 and $5.45. These are the recent developments regarding Jack in the Box.
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