Have Constellation Software Insiders Been Selling Stock?

Some Constellation Software Inc. (TSE:CSU) shareholders may be a little concerned to see that the Founder, Mark Leonard, recently sold a substantial CA$75m worth of stock at a price of CA$4,671 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 3.9%.

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Constellation Software Insider Transactions Over The Last Year

The COO & Director, Mark Miller, made the biggest insider sale in the last 12 months. That single transaction was for CA$98m worth of shares at a price of CA$3,802 each. That means that an insider was selling shares at slightly below the current price (CA$4,565). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 9.2% of Mark Miller's stake.

Constellation Software insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for Constellation Software

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).

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. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Constellation Software insiders own 6.7% of the company, worth about CA$6.5b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Constellation Software Insiders?

Insiders haven't bought Constellation Software stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. But since Constellation Software is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Constellation Software.

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 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.