Over the last year, a good number of insiders have significantly increased their holdings in CS Disco, Inc.( NYSE:LAW ). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At CS Disco
In the last twelve months, the biggest single purchase by an insider was when Independent Director Robert Goodman bought US$3.3m worth of shares at a price of US$3.19 per share. That means that an insider was happy to buy shares at around the current price of US$3.52. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider purchases were made at close to current prices.
In the last twelve months insiders purchased 1.15m shares for US$3.7m. But insiders sold 297.29k shares worth US$1.4m. Overall, CS Disco insiders were net buyers during 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!
Check out our latest analysis for CS Disco
CS Disco is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insiders At CS Disco Have Bought Stock Recently
Over the last three months, we've seen significantly more insider buying, than insider selling, at CS Disco. Insiders spent US$3.6m on shares. On the other hand, insiders netted US$153k by selling. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.
Does CS Disco Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that CS Disco insiders own 10% of the company, worth about US$25m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The CS Disco Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of CS Disco we think they are probably pretty confident of a bright future. 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 2 warning signs that you should run your eye over to get a better picture of CS Disco.
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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