Have Insiders Sold CS Disco Shares Recently?

Anyone interested in CS Disco, Inc. (NYSE:LAW) should probably be aware that the Executive VP & CFO, Michael Lafair, recently divested US$100k worth of shares in the company, at an average price of US$6.59 each. On the bright side, that sale was only 2.4% of their holding, so we doubt it's very meaningful, on its own.

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CS Disco Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the President, Eric Friedrichsen, sold US$464k worth of shares at a price of US$3.93 per share. That means that an insider was selling shares at slightly below the current price (US$6.41). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 46% of Eric Friedrichsen's holding. Notably Eric Friedrichsen was also the biggest buyer, having purchased US$90k worth of shares.

In total, CS Disco insiders sold more than they bought over the last year. The sellers received a price of around US$4.66, on average. It's not too encouraging to see that insiders have sold at below the current price. But we wouldn't put too much weight on the insider selling. 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!

See our latest analysis for CS Disco

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

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that CS Disco insiders own 7.9% 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 Do The CS Disco Insider Transactions Indicate?

Unfortunately, there has been more insider selling of CS Disco stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing CS Disco. Every company has risks, and we've spotted 2 warning signs for CS Disco 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.