Have Constellation Software Insiders Been Selling Stock?

We wouldn't blame Constellation Software Inc. (TSE:CSU) shareholders if they were a little worried about the fact that Barry Symons, a company insider, recently netted about CA$8.3m selling shares at an average price of CA$3,304. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 1.9%.

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Constellation Software Insider Transactions Over The Last Year

The Founder & Director, Mark Leonard, made the biggest insider sale in the last 12 months. That single transaction was for CA$66m worth of shares at a price of CA$4,698 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (CA$3,202). So it is hard to draw any strong conclusion from it.

Happily, we note that in the last year insiders paid CA$2.8m for 765.00 shares. On the other hand they divested 19.85k shares, for CA$90m. In total, Constellation Software insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for Constellation Software

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Insider Ownership Of Constellation Software

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Constellation Software insiders own 6.7% of the company, currently worth about CA$4.6b based on the recent share price. 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?

Unfortunately, there has been more insider selling of Constellation Software stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, Constellation Software makes money, and is growing profits. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Constellation Software. Case in point: We've spotted 3 warning signs for Constellation Software you should be aware of.

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.