Have CoStar Group Insiders Been Selling Stock?

Some CoStar Group, Inc. (NASDAQ:CSGP) shareholders may be a little concerned to see that the Independent Chairman of the Board, Michael Klein, recently sold a substantial US$5.4m worth of stock at a price of US$74.69 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 3.6%.

See our latest analysis for CoStar Group

CoStar Group Insider Transactions Over The Last Year

Notably, that recent sale by Michael Klein is the biggest insider sale of CoStar Group shares that we've seen in the last year. That means that an insider was selling shares at around the current price of US$73.46. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. 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).

All up, insiders sold more shares in CoStar Group than they bought, over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like CoStar Group better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of CoStar Group

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. CoStar Group insiders own about US$357m worth of shares (which is 1.2% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At CoStar Group Tell Us?

The insider sales have outweighed the insider buying, at CoStar Group, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing CoStar Group. Every company has risks, and we've spotted 2 warning signs for CoStar Group you should know about.

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 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.