18% Of This CSG Systems International Insider's Holdings Were Sold

Looking at CSG Systems International, Inc.'s (NASDAQ:CSGS ) insider transactions over the last year, we can see that insiders were net sellers. That is, there were more number of shares sold by insiders than there were purchased.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Our free stock report includes 2 warning signs investors should be aware of before investing in CSG Systems International. Read for free now.

The Last 12 Months Of Insider Transactions At CSG Systems International

The Independent Chairman of the Board, Ronald Cooper, made the biggest insider sale in the last 12 months. That single transaction was for US$600k worth of shares at a price of US$66.62 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 (US$60.47). So it may not shed much light on insider confidence at current levels. The only individual insider seller over the last year was Ronald Cooper.

You can see the insider transactions (by companies and 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!

Check out our latest analysis for CSG Systems International

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

CSG Systems International Insiders Are Selling The Stock

The last three months saw significant insider selling at CSG Systems International. In total, Independent Chairman of the Board Ronald Cooper dumped US$600k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Does CSG Systems International Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. CSG Systems International insiders own about US$91m worth of shares. That equates to 5.6% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About CSG Systems International Insiders?

An insider sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. But since CSG Systems International is profitable and growing, we're not too worried by this. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing CSG Systems International. Every company has risks, and we've spotted 2 warning signs for CSG Systems International you should know about.

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.