We note that the Jack in the Box Inc. (NASDAQ:JACK) Executive VP & Chief Customer & Digital Officer, Ryan Ostrom, recently sold US$13k worth of stock for US$39.16 per share. On the bright side, that's just a small sale and only reduced their holding by 2.6%.
View our latest analysis for 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$594k worth of shares, at about US$40.52 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$36.78. So it may not shed much light on insider confidence at current levels.
Insiders in Jack in the Box didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Jack in the Box better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests Jack in the Box insiders own 0.6% of the company, worth about US$4.5m. I generally like to see higher levels of ownership.
Insiders haven't bought Jack in the Box stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. When you consider that most companies have higher levels of insider ownership, we're a little wary. So we'd only buy after very careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 3 warning signs for Jack in the Box (2 can't be ignored!) and we strongly recommend you look at them before investing.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
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