Have CS Disco Insiders Been Selling Stock?

We note that the CS Disco, Inc. (NYSE:LAW) Executive VP & Chief Product Officer, Kevin Smith, recently sold US$52k worth of stock for US$6.65 per share. It might not be a huge sale, but it did reduce their holding size 10%, hardly encouraging.

Check out our latest analysis for CS Disco

The Last 12 Months Of Insider Transactions At CS Disco

The Executive VP & CFO, Michael Lafair, made the biggest insider sale in the last 12 months. That single transaction was for US$59k worth of shares at a price of US$6.82 each. So we know that an insider sold shares at around the present share price of US$6.29. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

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

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does CS Disco Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. CS Disco insiders own about US$37m worth of shares. That equates to 9.7% of the company. 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 Do The CS Disco Insider Transactions Indicate?

Insiders sold CS Disco shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing CS Disco. You'd be interested to know, that we found 2 warning signs for CS Disco and we suggest you have a look.

But note: CS Disco may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.