Have CS Disco Insiders Been Selling Stock?

We note that the CS Disco, Inc. (NYSE:LAW) Executive VP & CFO, Michael Lafair, recently sold US$68k worth of stock for US$5.19 per share. On the bright side, that's just a small sale and only reduced their holding by 2.3%.

View our latest analysis for CS Disco

CS Disco Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Chairman, Scott Hill, sold US$487k worth of shares at a price of US$6.65 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$5.00. So it may not shed much light on insider confidence at current levels. Notably Scott Hill was also the biggest buyer, having purchased US$135k worth of shares.

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. By clicking on the graph below, you can see the precise details of each insider transaction!

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.

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. We usually like to see fairly high levels of insider ownership. CS Disco insiders own about US$28m worth of shares. That equates to 8.9% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At CS Disco Tell Us?

Insiders sold CS Disco shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we found 1 warning sign for CS Disco that deserve your attention before buying any shares.

Of course CS Disco may not be the best stock to buy. So you may wish to see this free collection of high quality 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.