J Alexanders Story

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JAX -- USA Stock  

USD 5.50  0.10  1.79%

As many baby boomers are still indifferent towards consumer cyclical space, it makes sense to break down J Alexanders Holdings. We will evaluate why we are still optimistic in anticipation of a recovery. This post is to show some fundamental factors affecting J Alexanders' products and services. I will also show how it may impact the investing outlook for J Alexanders in October.
Published over a month ago
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J Alexanders (NYSE:JAX) continues to rise
Over 77.0% of J Alexanders shares are owned by institutional investors. Institutional ownership of J Alexanders Holdings refers to the amount of J Alexanders Holdings equity owned by mutual funds, pension funds, insurance companies, investment firms, foundations, or other large entities that manage money on behalf of others. Check out our latest analysis of J Alexanders, including its current ownership diagnostics.

How important is J Alexanders's Liquidity

J Alexanders financial leverage refers to using borrowed capital as a funding source to finance J Alexanders Holdings ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. J Alexanders financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between J Alexanders's total debt and its cash.

How J Alexanders utilizes its cash?

To perform a cash flow analysis of J Alexanders, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash J Alexanders is receiving and how much cash it distributes out in a given period. The J Alexanders cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. J Alexanders Net Cash Flow from Operations is fairly stable at the moment as compared to the past year. J Alexanders reported Net Cash Flow from Operations of 21.26 Million in 2019

What did J Alexanders file with SEC?

The SEC filings are financial statements or other formal documents of J Alexanders Holdings that are regularly submitted to the U.S. Securities and Exchange Commission (SEC). Public companies, certain insiders, and broker-dealers are required to make SEC filings and fintech professionals rely on these filings for information about companies they are evaluating for investment purposes. Please note, most SEC filings are available online through the SEC's EDGAR database. Please check here for more information.
Please note, although all public domestic companies are required to submit their filings via EDGAR, not all public companies are available through our service. Also, keep in mind that the actual annual reports to J Alexanders shareholders may or may not be submitted as SEC does not always require it.
Financial Statements and Exhibits. Results of Operations and Financial Condition
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Unclassified Corporate Event
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Submission of Matters to a Vote of Security Holders
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Other Events. Entry into a Material Definitive Agreement
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Please note, although all public domestic companies are required to submit their filings via EDGAR, not all public companies are available through our service. Also, keep in mind that the actual annual reports to J Alexanders shareholders may or may not be submitted as SEC does not always require it.

J Alexanders exotic insider transaction detected

Legal trades by J Alexanders insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
J Alexanders insider trading alert for general transaction of common stock by Trebia Acquisition Corp, the corporate stakeholder, on 12th of August 2020. This event was filed by J Alexanders Holdings Inc with SEC on 2020-08-12. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

What is driving J Alexanders Investor Appetite?

J Alexanders Holdings shows a total of 15.01 Million outstanding shares. The majority of J Alexanders Holdings outstanding shares are owned by institutions. These other corporate entities are usually referred to as non-private investors looking to purchase positions in J Alexanders Holdings to benefit from reduced commissions. Hence, outside corporations are subject to a different set of regulations than regular investors in J Alexanders Holdings. Please pay attention to any change in the institutional holdings of J Alexanders as this could imply that something significant has changed or about to change at the company. Remember, it does not matter who owns the company or if the company is currently losing money. If the true value of the company is more than the market pays for it currently, you can still have a good investment opportunity.

Ownership Breakdown

Retail Investors
19.75%
Institutions
76.73%
Retail Investors19.75
Insiders3.52
Institutions76.73

Are J Alexanders technical ratios showing a correction?

Current Sortino Ratio is up to -0.02. Price may slide again. J Alexanders Holdings shows above-average downside volatility for the selected time horizon. We advise investors to inspect J Alexanders Holdings further and ensure that all market timing and asset allocation strategies are consistent with the estimation of J Alexanders future alpha.

While some firms under the restaurants industry are still a bit expensive, J Alexanders may offer a potential longer-term growth to investors. In closing, as of the 19th of September 2020, we see that J Alexanders barely shadows the market. The company is undervalued with below average chance of distress within the next 24 months. However, our final 30 days buy-hold-sell advice on the company is Sell.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of J Alexanders Holdings. Please refer to our Terms of Use for any information regarding our disclosure principles.

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