Ryan Lee Ostrom, executive vice president, chief customer and chief digital officer, Jack in the Box Inc. (NASDAQ:), recently sold part of its holdings in the company. According to a filing with the Securities and Exchange Commission, Ostrom sold a total of 2,459 shares on December 23, 2024, at a price of $40.52 per share, for a total of approximately $99,638. The deal comes as the stock trades near its 52-week low of $38.12, having fallen nearly 50% over the past year. InvestingPro The analysis indicates that the stock is currently trading below its fair value.
The shares were disposed of to cover tax liabilities related to grants of performance shares and restricted stock units. Following these transactions, Ostrom retains direct ownership of 29,648 shares in the company. Earlier, on December 20, he received 4,363 shares at no cost, tied to achieving performance targets over a three-year period. Despite recent challenges, the company maintains a remarkable dividend yield of 4.39% and has maintained sustainable dividend payments for 11 consecutive years. For deeper insights into insider transactions and comprehensive financial analysis, including 12 additional ProTips, see the full research report on InvestingPro.
In other recent news, fast food chain Jack in the Box has undergone several shake-ups by financial services companies. Stifel revised its 12-month price target for Jack in the Box to $52.00, reflecting expected increases in selling, general and administrative (SG&A) expenses and pressure on restaurant profit margins. The company also revised its FY2025 earnings per share (EPS) estimate to $5.36, slightly below the consensus estimate of $5.37.
Likewise, TD Cowen maintained a Hold rating on Jack in the Box shares with a firm price target of $50.00, while RBC Capital Markets lowered its price target from $70.00 to $65.00, while maintaining an Outperform rating. Both companies highlighted potential challenges ahead, including competitive pressure from rivals such as McDonald's (NYSE:) and the impact of wage increases in California.
Goldman Sachs also revised its outlook, lowering its price target to $43.00 from $47.00 and maintaining a sell rating. The company noted the need for more specific signs of unit growth and improved same-store sales growth before changing its stance.
These adjustments come on the heels of Jack in the Box's recent earnings reports and forecasts for fiscal year 2025, which reflect continued challenges in same-store sales growth and increased expenses due to new store openings. Despite these challenges, the company has made great strides in digital expansion, penetrating new markets, and restaurant development, signing agreements to establish 464 new restaurants.
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