Steven Piano, the Senior Vice President and Chief People Officer of Jack in the Box Inc. (NASDAQ:JACK), has sold a total of 148 shares of the company's common stock, according to a recent filing with the Securities and Exchange Commission. The transaction, which took place on May 13, 2024, resulted in proceeds exceeding $7,900 for Piano.
The shares were sold at a price of $53.42 each, as part of an automated sell-to-cover transaction that is commonly used by executives to satisfy tax withholding obligations upon the vesting of restricted stock units. This is in line with the company's policy as stated in the grant agreement, which allows for automatic sales to cover tax liabilities.
Following the sale, Piano remains a significant shareholder of Jack in the Box, retaining 9,112 shares of common stock. Investors often monitor insider transactions like these for insights into executive confidence in the company's performance and outlook.
Jack in the Box, a well-known fast-food restaurant chain, has its headquarters in San Diego, California, and operates through various locations across the United States. As with any insider transaction, the sale by Piano is publicly disclosed to ensure transparency and maintain investor confidence in the market.
InvestingPro Insights
As investors evaluate the recent insider transaction at Jack in the Box Inc. (NASDAQ:JACK), it's essential to consider the company's current financial health and market performance. According to InvestingPro data, Jack in the Box has a market capitalization of $1.04 billion and is trading with a P/E ratio of 9.31, reflecting a market that recognizes its earnings potential. Notably, the P/E ratio has adjusted slightly to 8.99 over the last twelve months as of Q1 2024, suggesting a modest improvement in valuation.
Despite recent market challenges, Jack in the Box has maintained a consistent dividend payout, with a current dividend yield of 3.33%, rewarding shareholders for their investment. This is particularly noteworthy considering the stock is trading near its 52-week low, which could indicate a potential value opportunity for investors. The company's commitment to returning value to shareholders is also evident in its management's aggressive share buyback strategy, as highlighted by one of the InvestingPro Tips.
Another InvestingPro Tip points out that the stock's Relative Strength Index (RSI) suggests it is in oversold territory. This could attract investors looking for a potential rebound, especially as analysts predict the company will be profitable this year. For those interested in a deeper dive into Jack in the Box's performance and additional insights, there are 11 more InvestingPro Tips available at https://www.investing.com/pro/JACK. Moreover, readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, further enriching their investment research with valuable data and analytics.
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