This Insider Has Just Sold Shares In Constellation Software

We wouldn't blame Constellation Software Inc. (TSE:CSU) shareholders if they were a little worried about the fact that John Billowits, the Chairman of the Board recently netted about CA$3.8m selling shares at an average price of CA$3,203. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 3.5%.

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The Last 12 Months Of Insider Transactions At Constellation Software

Over the last year, we can see that the biggest insider sale was by the insider, Barry Symons, for CA$8.3m worth of shares, at about CA$3,304 per share. So what is clear is that an insider saw fit to sell at around the current price of CA$3,139. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. 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).

In the last twelve months insiders purchased 2.87k shares for CA$9.3m. But they sold 4.02k shares for CA$13m. All up, insiders sold more shares in Constellation Software 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. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Constellation Software

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Insider Ownership Of Constellation Software

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Constellation Software insiders own 4.4% of the company, currently worth about CA$2.9b 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?

Insiders sold Constellation Software shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that Constellation Software is growing earnings. 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. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Constellation Software.

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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.