Have Insiders Sold CoStar Group, Inc. (NASDAQ:CSGP) Shares Recently?

By
Simply Wall St
Published
May 07, 2022
NasdaqGS:CSGP
Source: Shutterstock

Investors may wish to note that the Chief Human Resources Officer of CoStar Group, Inc., Michael Desmarais, recently netted US$63k from selling stock, receiving an average price of US$63.14. However we note that the sale only shrunk their holding by 2.6%.

See our latest analysis for CoStar Group

CoStar Group Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Senior Vice President of Global Research, Lisa Ruggles, sold US$1.3m worth of shares at a price of US$59.88 per share. That means that an insider was selling shares at around the current price of US$59.11. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

CoStar Group insiders didn't buy any shares 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!

insider-trading-volume
NasdaqGS:CSGP Insider Trading Volume May 7th 2022

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does CoStar Group Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. CoStar Group insiders own 1.1% of the company, currently worth about US$261m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About CoStar Group Insiders?

Insiders sold CoStar Group shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, CoStar Group 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. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 1 warning sign with CoStar Group and understanding this should be part of your investment process.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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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