WEBULL

Don't Ignore The Insider Selling In CS Disco

Simply Wall St · 08/22 10:13

Investors may wish to note that the Executive VP & CFO of CS Disco, Inc., Michael Lafair, recently netted US$72k from selling stock, receiving an average price of US$4.82. On the bright side, that's just a small sale and only reduced their holding by 2.4%.

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CS Disco Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the President, Eric Friedrichsen, for US$464k worth of shares, at about US$3.93 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$4.89. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 46% of Eric Friedrichsen's holding. Notably Eric Friedrichsen was also the biggest buyer, having purchased US$45k worth of shares.

Over the last year we saw more insider selling of CS Disco shares, than buying. 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!

Check out our latest analysis for CS Disco

insider-trading-volume
NYSE:LAW Insider Trading Volume August 22nd 2025

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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. Insiders own 8.9% of CS Disco shares, worth about US$27m. 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. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. While conducting our analysis, we found that CS Disco has 2 warning signs and it would be unwise to ignore these.

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.