Whilst it may not be a huge deal, we thought it was good to see that the Jack in the Box Inc. (NASDAQ:JACK) Independent Director, Guillermo Diaz, recently bought US$69k worth of stock, for US$11.51 per share. Even though that isn't a massive buy, it did increase their holding by 92%, which is arguably a good sign.

The Last 12 Months Of Insider Transactions At Jack in the Box

In the last twelve months, the biggest single purchase by an insider was when insider Lance Tucker bought US$86k worth of shares at a price of US$17.29 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$11.65). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Happily, we note that in the last year insiders paid US$173k for 11.96k shares. But they sold 24.42k shares for US$437k. Over the last year we saw more insider selling of Jack in the Box shares, than buying. The sellers received a price of around US$17.88, on average. It is certainly not great to see that insiders have sold shares in the company. However, we do note that the average sale price was significantly higher than the current share price (which is US$11.65). You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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).

Does Jack in the Box Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. From looking at our data, insiders own US$4.8m worth of Jack in the Box stock, about 2.1% of the company. But they may have an indirect interest through a corporate structure that we haven't picked up on. We prefer to see high levels of insider ownership.

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

Our data shows a little insider buying, but no selling, in the last three months. Overall the buying isn't worth writing home about. Recent insider selling makes us a little nervous, in light of the broader picture of Jack in the Box insider transactions. And we're not picking up on high enough insider ownership to give us any comfort. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Jack in the Box.

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.

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.