We note that the CS Disco, Inc. (NYSE:LAW) Executive VP & CFO, Michael Lafair, recently sold US$59k worth of stock for US$6.82 per share. On the bright side, that’s just a small sale and only reduced their holding by 1.7%.
See our latest analysis for CS Disco
The Last 12 Months Of Insider Transactions At CS Disco
Notably, that recent sale by Michael Lafair is the biggest insider sale of CS Disco shares that we’ve seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of US$6.69. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
All up, insiders sold more shares in CS Disco than they bought, 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!
I will like CS Disco better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does CS Disco Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. CS Disco insiders own about US$38m worth of shares. That equates to 9.4% of the company. 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 CS Disco Insider Transactions Indicate?
Insiders sold CS Disco shares recently, but they didn’t buy any. Despite some insider buying, the longer term picture doesn’t make us feel much more positive. Insider ownership isn’t particularly high, so this analysis makes us cautious about the company. We’d practice some caution before buying! In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing CS Disco. While conducting our analysis, we found that CS Disco has 3 warning signs and it would be unwise to ignore these.
Of course CS Disco may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
