SAN DIEGO—Dawn E. Hooper, Senior Vice President and Controller at Jack in the Box Inc. (NASDAQ:JACK), recently sold a portion of her company stock. The transaction comes as the company's shares trade near their 52-week low of $38.12, having declined about 50% over the past year. According to InvestingPro analysis, the stock appears undervalued at current levels. According to a filing with the Securities and Exchange Commission, Hooper disposed of 210 shares of common stock on December 23, 2024, at a price of $40.52 per share. The total transaction was valued at approximately $8,509.
This sale was conducted to satisfy a tax withholding obligation related to the vesting of restricted stock units, as stated in the company's automatic sell-to-cover policy. Following this transaction, Hooper retains ownership of 9,727 shares in the company.
In other recent news, Jack in the Box's financial performance and analyst outlooks have been the focus of several updates. The fast-food chain's recent earnings report showed an EPS of $1.16, surpassing estimates but falling short in revenue at $349.3 million. This was attributed to weaker same-store sales growth at both Jack In The Box and Del Taco brands. Stifel, a financial services company, revised its 12-month price target for Jack in the Box to $52.00, citing concerns like increased SG&A expenses and pressure on restaurant margins.
TD Cowen maintained a steady price target of $50.00 on the company's shares, noting potential challenges ahead. Despite this, RBC Capital Markets reduced its price target from $70.00 to $65.00, maintaining an Outperform rating. Goldman Sachs (NYSE:GS) also adjusted its outlook, reducing the price target to $43.00 while maintaining a Sell rating. All firms expressed the need for more definitive signs of growth before changing their stance.
In terms of future expectations, Jack in the Box projects an operating EPS between $5.05 and $5.45 for fiscal 2025. This reflects ongoing challenges in same-store sales growth and increased expenses due to new store openings. Despite these challenges, the company made significant strides in digital expansion, new market penetration, and restaurant development. While the recent developments present a mixed outlook, the company's strategic progression is evident.
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