Jack in the Box Inc. (NASDAQ: JACK) stock jumped 1.69% on Thursday to $73.46 against a previous-day closing price of $72.24. With 0.54 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.32 million shares. During the session, the Restaurants company that operates in wider Consumer Cyclical sector, reached to the highest price of $73.47 whereas the lowest price it dropped to was $71.61. The 52-week range on JACK shows that it touched its highest point at $99.56 and its lowest point at $65.71 during that stretch. It currently has a 1-year price target of $101.81. With its current market cap of 1.49 billion, JACK has annualized dividend of $1.76 while the current yield stands at 2.40%. Beta for the stock currently stands at 1.70.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of JACK was down-trending over the past week, with a drop of -6.29%, but this was down by -8.94% over a month. Three-month performance dropped to -19.79% while six-month performance fell -8.45%. The stock lost -13.42% in the past year, while it has gained 7.67% so far this year. A look at the trailing 12-month EPS for JACK yields 7.38 with Next year EPS estimates of 6.84. For the next quarter, that number is 1.16. This implies an EPS growth rate of -26.10% for this year and 12.07% for next year. EPS is expected to grow by 7.20% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 5.60%.
Float and Shares Shorts:
At present, 20.49 million JACK shares are outstanding with a float of 19.84 million shares on hand for trading. On Aug 30, 2023, short shares totaled 1.21 million, which was 6.00% higher than short shares on Jul 30, 2023. In addition to Mr. Darin S. Harris as the firm’s CEO & Director, Mr. Richard Cook serves as its Sr. VP & CTO.
Other institutions hold 56.39% of JACK, in contrast to 46.21% held by mutual funds. Shares owned by individuals account for 10.24%. As the largest shareholder in JACK with 14.55% of the stake, BlackRock Fund Advisors holds 2,965,881 shares worth 2,965,881. A second-largest stockholder of JACK, The Vanguard Group, Inc., holds 2,407,005 shares, controlling over 11.81% of the firm’s shares. Capital Research & Management Co is the third largest shareholder in JACK, holding 1,428,885 shares or 7.01% stake. With a 7.13% stake in JACK, the iShares Core S&P Small Cap ETF is the largest stakeholder. A total of 1,454,453 shares are owned by the mutual fund manager. The American Funds Small Cap World Fu, which owns about 7.01% of JACK stock, is the second-largest Mutual Fund holder. It holds 1,428,885 shares valued at 142.05 million. Vanguard Total Stock Market ETF holds 3.15% of the stake in JACK, owning 642,150 shares worth 63.84 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jul 08, 2023, JACK reported revenue of $398.31M and operating income of $54.85M. The EBITDA in the recently reported quarter was $71.93M and diluted EPS was $1.08.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for JACK since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With JACK analysts setting a high price target of $133.00 and a low target of $88.00, the average target price over the next 12 months is $101.81. Based on these targets, JACK could surge 81.05% to reach the target high and rise by 19.79% to reach the target low. Reaching the average price target will result in a growth of 38.59% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.
Dividends & Yield:
In terms of dividends, JACK has a current ratio of $1.76, which is $1.76 over the trailing 12-months, while a dividend of $1.61 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and JACK currently yields $2.4. In the past year, JACK’s dividend yield has been $2.4, but when looking at the stock over the past five years, its yield has been $1.99. Accordingly, JACK has a current buyback yield of $5.77. This was $5.77 for the TTM, and it was $9.31 for the past five years.
Summary of Insider Activity:
Insiders traded JACK stock several times over the past three months with 0 Buys and 2 Sells. In these transactions, 0 shares were bought while 750 shares were sold. The number of buy transactions has increased to 64 while that of sell transactions has risen to 33 over the past year. The total number of shares bought during that period was 73,251 while 15,807 shares were sold.