Some CoStar Group, Inc. (NASDAQ:CSGP) shareholders may be a little concerned to see that the Executive Vice President of Sales, Matthew F. Linnington, recently sold a whopping US$999k worth of stock at a price of US$617 per share. However, that sale only accounted for 6.9% of their holding, so arguably it doesn’t say much about their conviction.
CoStar Group Insider Transactions Over The Last Year
The Co-Founder, Andrew Florance, made the biggest insider sale in the last 12 months. That single transaction was for US$15m worth of shares at a price of US$629 each. So what is clear is that an insider saw fit to sell at around the current price of US$599. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it’s not too bad (but it’s still not a positive).
We note that in the last year insiders divested 56108 shares for a total of US$30m. CoStar Group insiders didn’t buy any shares over the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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. CoStar Group insiders own about US$377m worth of shares (which is 1.7% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At CoStar Group Tell Us?
Insiders haven’t bought CoStar Group stock in the last three months, but there was some selling. And even if we look to the last year, we didn’t see any purchases. But since CoStar Group is profitable and growing, we’re not too worried by this. The company boasts high insider ownership, but we’re a little hesitant, given the history of share sales. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
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, but not derivative transactions.
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