Ryan Lee Ostrom, Executive Vice President and Chief Consumer and Digital Officer at Jack in the Box Inc. (NASDAQ:), recently sold part of his 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, amounting to $99,638. The transaction comes as the stock trades near a 52-week low of $38.12, down about 50% over the past year. InvestingPro Analysis shows that the stock is currently trading below its fair value.
Dividends were liquidated to cover tax liabilities associated with the issuance of performance shares and restricted stock units. Following this transaction, Ostrom retains direct ownership of 29,648 shares in the company. Previously, on December 20, he received 4,363 shares at no cost, related to the achievement of performance goals over a three-year period. Despite recent challenges, the company has maintained a 4.39% dividend yield and has maintained its dividend payout for 11 consecutive years. For in-depth insights into insider trading and comprehensive financial analysis, including 12 additional ProTips, check out the full research report InvestingPro.
In other recent news, Jack in the Box, a fast food chain, has been the subject of several restructurings by financial services firms. Stifel updated Jack in the Box's 12-month price target to $52.00, reflecting an expected increase in selling, general, and administrative (SG&A) expenses and pressure on restaurant margins. The firm revised its earnings per share (EPS) estimate for fiscal year 2025 to $5.36, slightly below the consensus estimate of $5.37.
Similarly, TD Cowen maintained a Hold rating on Jack in the Box shares with a firm price target of $50.00, while RBC Capital Markets reduced its price target from $70.00 to $65.00, maintaining a Outperform rating. Both businesses highlighted potential challenges ahead, including pressure from competitors such as McDonald's (NYSE: ) and the impact of rising wages in California.
Goldman Sachs revised its outlook, reducing the price target to $43.00 from $47.00 and maintaining a sell rating. The firm noted the need for clear signs of unit growth and improving same-store sales growth before changing its stance.
This adjustment comes after Jack in the Box's latest earnings report and 2025 financial forecast, which indicated continued challenges in same-store sales growth and increased costs due to new store openings. Despite these challenges, the company has made significant progress in digital expansion, entering new markets, and restaurant development, signing contracts for 464 new restaurants.
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