SAN DIEGO – Darren Harris, CEO and Director of Jack in the Box Inc., announced today the announcement: (NASDAQ:), recently announced several stock transactions involving the company's common stock. According to its most recent SEC filing, Harris sold a total of 14,671 shares on December 23, 2024, at a price of $40.52 per share. This transaction generated approximately $594,468. The sale comes as Jack in the Box shares are trading near a 52-week low of $38.12, having fallen nearly 50% over the past year.
The sales were part of automatic sale transactions to satisfy tax withholding obligations upon vesting of performance shares and restricted stock units. Following these transactions, Harris retains direct ownership of 138,803 shares in the company. according to InvestingPro Through analysis, Jack in the Box currently appears to be undervalued, with 12 additional exclusive ideas available to subscribers.
Earlier, on December 20, 2024, Harris acquired 20,726 shares at no cost, as part of the company's stock incentive plan to achieve pre-established performance targets. This acquisition increased his total holdings before subsequent sales. Despite the current challenges, analysts expect the company to return to profitability this year InvestingPro Data.
In other recent news, Jack in the Box reported its fourth-quarter earnings for fiscal 2024, beating estimates with earnings of $1.16 per share, yet revenue fell to $349.3 million. EPS guidance for fiscal 2025 is expected to be between $5.05 and $5.45. Stifel, TD Cowen, RBC Capital Markets and Goldman Sachs, all financial services companies, have revised their forecasts for Jack in the Box. Stifel cut its 12-month price target to $52.00, TD Cowen maintained a firm price target of $50.00, RBC Capital Markets cut its price target from $70.00 to $65.00, and Goldman Sachs lowered its price target to $43.00 from $47.00.
Despite these adjustments, all companies maintained their ratings on the stock. The revisions were due to factors such as an expected increase in selling, general and administrative (SG&A) expenses, pressure on restaurant margins, the impact of the California wage increase, and a potential decrease in stock repurchases by the company. The fast food competitive landscape, with important players such as McDonald's (NYSE:) vying for market share, also influenced these adjustments.
In addition, Jack in the Box has made great strides in digital expansion, penetrating new markets, and restaurant development, with more than 14% of the company's sales becoming digital and agreements signed for 464 new restaurants. Despite these developments, the company is also facing cost pressures due to California's new minimum wage law and inflation. These are recent developments related to the fast food chain, and investors should follow these developments closely.
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