We note that the Jack in the Box Inc. (NASDAQ:JACK) Senior VP & CTO, Richard Cook, recently sold US$7.6k worth of stock for US$49.94 per share. However we note that the sale only shrunk their holding by 5.7%.
The Last 12 Months Of Insider Transactions At Jack in the Box
Over the last year, we can see that the biggest insider sale was by the CEO & Director, Darin Harris, for US$558k worth of shares, at about US$68.01 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$46.10). So it may not shed much light on insider confidence at current levels.
Jack in the Box insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Insider Ownership Of Jack in the Box
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Jack in the Box insiders own about US$5.2m worth of shares (which is 0.6% of the company). We do generally prefer see higher levels of insider ownership.
So What Do The Jack in the Box Insider Transactions Indicate?
While there has not been any insider buying in the last three months, there has been selling. However, the sales are not big enough to concern us at all. Recent insider selling makes us a little nervous, in light of the broader picture of Jack in the Box insider transactions. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. While conducting our analysis, we found that Jack in the Box has 2 warning signs and it would be unwise to ignore them.
But note: Jack in the Box may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.