Anyone interested in Jack in the Box Inc. (NASDAQ:JACK) should probably be aware that the Senior VP & Chief Supply Chain Officer, Dean Gordon, recently divested US$301k worth of shares in the company, at an average price of US$100 each. The eyebrow raising move amounted to a reduction of 34% in their holding.
Check out our latest analysis for Jack in the Box
The Last 12 Months Of Insider Transactions At Jack in the Box
In fact, the recent sale by Dean Gordon was the biggest sale of Jack in the Box shares made by an insider individual in the last twelve months, according to our records. So what is clear is that an insider saw fit to sell at around the current price of US$94.76. While we don’t usually like to see insider selling, it’s more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn’t a major concern, though it’s hardly a good sign.
Happily, we note that in the last year insiders paid US$171k for 3.70k shares. On the other hand they divested 5.50k shares, for US$511k. In total, Jack in the Box insiders sold more than they bought over the last year. They sold for an average price of about US$92.86. It’s not too encouraging to see that insiders have sold at below the current price. But we wouldn’t put too much weight on the insider selling. 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 are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of Jack in the Box
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.9% of Jack in the Box shares, worth about US$19m. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Jack in the Box Insider Transactions Indicate?
Insiders sold stock recently, but they haven’t been buying. Zooming out, the longer term picture doesn’t give us much comfort. But since Jack in the Box is profitable and growing, we’re not too worried by this. Insider ownership isn’t particularly high, so this analysis makes us cautious about the company. We’d practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. Every company has risks, and we’ve spotted 2 warning signs for Jack in the Box (of which 1 is significant!) you should know about.
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, but not derivative transactions.
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