CS Disco Chairman Acquires 15% More Stock

Investors who take an interest in CS Disco, Inc. (NYSE:LAW) should definitely note that the Chairman, Scott Hill, recently paid US$5.39 per share to buy US$135k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 15%.

See our latest analysis for CS Disco

CS Disco Insider Transactions Over The Last Year

In fact, the recent purchase by Chairman Scott Hill was not their only trade of CS Disco shares this year. Earlier in the year, they sold shares at a price ofUS$6.65 per share in a -US$487k transaction. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$5.46. So it may not tell us anything about how insiders feel about the current share price.

In the last twelve months insiders purchased 32.00k shares for US$183k. But they sold 156.55k shares for US$1.0m. In total, CS Disco 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like CS Disco 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

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It appears that CS Disco insiders own 10% of the company, worth about US$32m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About CS Disco Insiders?

We note a that there has been a bit of insider buying recently (but no selling). That said, the purchases were not large. Recent sales exacerbate our caution arising from analysis of CS Disco insider transactions. But we do like the fact that insiders own a fair chunk of the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing CS Disco. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of CS Disco.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.