We wouldn't blame CoStar Group, Inc. (NASDAQ:CSGP) shareholders if they were a little worried about the fact that Michael Klein, the Independent Chairman of the Board recently netted about US$5.4m selling shares at an average price of US$74.69. However, that sale only accounted for 3.6% of their holding, so arguably it doesn't say much about their conviction.
CoStar Group Insider Transactions Over The Last Year
In fact, the recent sale by Michael Klein was the biggest sale of CoStar Group shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of US$73.24. While we don't usually like to see insider selling, it's more concerning if the sales take place 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 CoStar Group than they bought, over 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!
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Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. CoStar Group insiders own 1.2% of the company, currently worth about US$362m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About CoStar Group Insiders?
The insider sales have outweighed the insider buying, at CoStar Group, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. At Simply Wall St, we found 2 warning signs for CoStar Group that deserve your attention before buying any shares.
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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.
