Jack in the Box Inc. (JACK): One of the Underperforming Stocks Targeted By Short Sellers

Jabran Kundi

Wed, May 14, 2025, 8:20 AM 3 min read

We precocious published a database of 20 Underperforming Stocks Targeted By Short Sellers. In this article, we are going to instrumentality a look astatine wherever Jack successful the Box Inc. (NASDAQ:JACK) stands against different underperforming stocks targeted by abbreviated sellers.

Short involvement refers to the percent of publically disposable shares that person been sold short. It is an indicator utilized by galore investors to find however beardown a company’s carnivore thesis whitethorn be. Due to the quality of abbreviated selling, the abbreviated involvement has go a fashionable indicator among investors.

The crushed it is fixed truthful overmuch weightage is that radical betting against a banal person usually done coagulated probe and are assured of a company’s downfall. They instrumentality unlimited risk, truthful erstwhile large investors oregon the astute wealth shorts a stock, radical instrumentality notice. They effort to unearth the reddish flags that whitethorn person prompted the precocious abbreviated interest.

We decided to excavation deeper and effort to find retired wherever astute wealth sees occupation ahead. To travel up with our database of 20 underperforming stocks targeted by abbreviated sellers, we looked astatine the worst-performing stocks of the past six months and past ranked them by the abbreviated interest.

The beforehand antagonistic of the restaurant, with the paper illuminated successful the background.

Short interest: 17.09%

6 months’ performance: -51.48%

Jack successful the Box Inc. (NASDAQ:JACK) is simply a franchisor and relation of quick-service restaurants. The institution operates restaurants nether the Del Taco and Jack successful the Box brands. Its banal has mislaid fractional its worth successful the past six months, but a lawsuit could beryllium made that the negatives are present good priced in.

The institution is highly leveraged, which is wherefore investors are betting against a turnaround. However, the indebtedness has a semipermanent maturity, and the institution is doing a bully occupation of expanding its currency reserves portion keeping indebtedness stable.

Jack successful the Box Inc. (NASDAQ:JACK) is besides focusing connected its franchise concern to summation royalties and guarantee unchangeable currency flows. It is the Del Taco concatenation that is causing headaches, but the absorption has a antithetic benignant of solution for this problem. A restructuring could beryllium connected the cards, and a implicit divestiture of the concern isn’t being ruled retired either. The steadfast could make $200 cardinal with a imaginable sale, which is simply a acold outcry from the $585 cardinal it paid to instrumentality the concern backstage successful 2022.

Overall, JACK ranks 8th connected our database of underperforming stocks targeted by abbreviated sellers. While we admit the imaginable of JACK arsenic an investment, our condemnation lies successful the content that immoderate AI stocks clasp greater committedness for delivering higher returns, and doing truthful wrong a shorter clip frame. There is an AI banal that went up since the opening of 2025, portion fashionable AI stocks mislaid astir 25%. If you are looking for an AI banal that is much promising than JACK but that trades astatine little than 5 times its earnings, cheque retired our study astir this cheapest AI stock.