What Effect Will Last Night’s Developments Have On These Stocks?

Moving on, restaurant chain Jack in the Box Inc. (NASDAQ:JACK) announced on Monday after the market close that its Board of Directors has authorized $200 million for a stock buyback program that will start in fiscal year 2016 and expire in November 2017. Following this announcement, the stock of the company rose rapidly during the after-hours session. Although the shares of Jack in the Box Inc. (NASDAQ:JACK) nearly quadrupled from the beginning of 2012 to early-2015, they have lost almost 25% from the all-time high they made earlier this year and currently trade down by 5% year-to-date. During the second quarter when the stock lost almost 8%, the number of hedge funds covered by us that were long in the stock came down by four to 35. However, the aggregate value of hedge funds’ holdings in Jack in the Box Inc. (NASDAQ:JACK) increased by $10.2 million during the same period to $377.84 million. Israel Englander‘s Millennium Management was the largest shareholder of the company at the end of second quarter, owning 976,747 shares.

Finally, shares of Walt Disney Co (NYSE:DIS) lost some sheen in the after-hours session yesterday after it came to light that the company would be laying off between 200-to-300 employees at its most profitable unit, ESPN, in the coming months. The last time employees were laid off at ESPN was in 2013. According to experts, more layoffs are in the cards for ESPN employees in the near future, as Walt Disney Co (NYSE:DIS) has asked ESPN to reduce its budget by $100 million in 2016 and by $250 million in 2017. Owing to the over 30% rise that shares of Walt Disney Co (NYSE:DIS) had between February and July of this year, they are still trading up by 9.16% for the year even after suffering a big decline in the last six weeks. Most analysts that cover the stock continue to be bullish on it. On September 2, analysts at CLSA initiated coverage on the stock with an ‘Overweight’ rating and a $114 price target, representing upside potential of about 12%. Jacob Rothschild‘s RIT Capital Partners was one of the hedge funds that initiated a stake in the company during the second quarter, and held 509,000 shares at the end of June.

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