Are Insiders Shedding Shares of Jack in the Box Inc. (NASDAQ:JACK)?

As of the latest SEC filings, insiders at Jack in the Box Inc. (NASDAQ:JACK) have decreased their position in the stock by -13.98% over the past 6 months..  Insiders now own 2.30% of total outstanding shares.

As soon as an individual decides what they want out of their investments, they can start formulating the best way to accomplish those goals. The time horizon for each investor may be different. Fluctuations in the financial markets can have a big effect on shorter-term investments. Investors that need a certain amount of money in a shorter amount of time may be looking to develop a stock market strategy with a bit less risk involved. On the other end of the spectrum, a younger investor with a longer time horizon might be able to search for stocks with a higher potential for growth that may involve much more risk. The volatility of today’s markets can test the nerves of any investor. Understanding volatility and market fluctuations can help the investor gauge their risk tolerance in the markets.

When getting into the markets, most investors realize that riskier stocks may have an increased potential for higher returns. If investors decide to take a chance on some of these stocks, they may want to employ some standard techniques to help manage that risk. This may involve creating a diversified stock portfolio. Mixing up the portfolio with stocks from different sectors, market caps, and growth potential, may be the right move. In general, the goal is to maximize returns in accordance with the individual’s specific risk profile. It should be obvious that no matter how well rounded the portfolio is, there are always risks in the equity markets. Having a sound plan before investing can help ease the burden of knowing that markets can sometimes do crazy things without any rhyme or reason. 

Active investors are typically interested in the factors that drive stock price movements. Buying an individual stock means that you own a piece of the company. The hope is that the company does very well and becomes highly profitable. A profitable company may decide to do various things with the profits. They may reinvest profits back into the business, or they may choose to pay shareholders dividends from those earnings. Sometimes stocks may eventually become undervalued or overvalued. Spotting these trends may lead to further examination or the underlying fundamentals of the company. A company that continues to disappoint on the earnings front may have some issues that need to be addressed. It is highly important to make sure all the research is done on a stock, especially if the investor is heavily weighted on the name. Sometimes earnings reports may be good, but the stock price does not reflect that. Having a good understanding of the entire picture may help investors better travel the winding stock market road.

One of the greatest investors of all time, Peter Lynch, is quoted as saying: “insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.”

Jack in the Box Inc. (NASDAQ:JACK) stands 0.15% away from its 50-day simple moving average and also -3.77% away from the 200-day average.  Recently, the equity stands -16.26% away from the 52-week high and 9.65% from the 52-week low.  The RSI (Relative Strength Index), an indicator that shows price strength by comparing upward and downward close-to-close movements is 54.85.

The consensus analysts recommendation at this point stands at 2.30 for Jack in the Box Inc..  This is based on a 1-5 scale where 1 indicates a Strong Buy and 5 a Strong Sell. Further, analysts have a 12 month target price of $94.08 on company shares.  This is according to the analysts polled by Thomson Reuters which have recently published research reports on the firm. 

As we sail into the second half of the calendar year, investors may be looking to see what has gone right and what has gone wrong so far this year. Making necessary changes to some holdings may help position investors for the next couple of quarters. Being able to cut the riskier losers and take some profits from winners may help solidify the stock portfolio. As we run through the next round of company earnings reports, investors will be keeping a close eye on the data that is reported. Investors may be looking to buy companies that continue to post beats on the earnings front, and cut ties with ones that are not hitting their marks.