Don't Ignore The Insider Selling In Jack in the Box

Anyone interested in Jack in the Box Inc. (NASDAQ:JACK) should probably be aware that the CEO & Director, Darin Harris, recently divested US$265k worth of shares in the company, at an average price of US$48.93 each. That sale was 11% of their holding, so it does make us raise an eyebrow.

Check out our latest analysis for Jack in the Box

Jack in the Box Insider Transactions Over The Last Year

In fact, the recent sale by CEO & Director Darin Harris was not their only sale of Jack in the Box shares this year. Earlier in the year, they fetched US$81.56 per share in a -US$312k sale. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$47.97. So it is hard to draw any strong conclusion from it.

Jack in the Box insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Jack in the Box

Many investors like to check how much of a company is owned by insiders. 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$5.3m worth of shares (which is 0.6% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Does This Data Suggest About Jack in the Box Insiders?

Insiders sold Jack in the Box shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. When you consider that most companies have higher levels of insider ownership, we're a little wary. So we're not rushing to buy, to say the least. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Jack in the Box. Case in point: We've spotted 3 warning signs for Jack in the Box you should be aware of, and 2 of these shouldn't be ignored.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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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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.