Insider Trading February 19, 2026

CS Disco HR Chief Disposes $25,084 in Stock as Company Shares Trade Near 52-Week Low

Executive sale reduces direct holdings; restricted stock awards posted the next day while company readies a new agentic AI tool and names a new CFO

By Priya Menon LAW
CS Disco HR Chief Disposes $25,084 in Stock as Company Shares Trade Near 52-Week Low
LAW

CS Disco Executive Vice President and Chief Human Resources Officer Karen Herckis sold 8,171 shares of common stock on February 17, 2026, for a total of $25,084. The transaction reduced her direct stake in the company to 132,259 shares. A day later, Herckis received restricted stock unit awards totaling 69,592 shares. The sale occurred as the stock traded close to a 52-week low and after external analysis flagged the company as potentially undervalued owing to a cash-heavy balance sheet. Separately, the company announced a planned agentic AI product launch later this year and confirmed the appointment of Aaron Barfoot as chief financial officer effective January 12, 2026.

Key Points

  • Karen Herckis sold 8,171 shares on February 17, 2026, at $3.04 to $3.08 per share, generating $25,084 and reducing her direct ownership to 132,259 shares.
  • On February 18, 2026, Herckis received restricted stock unit awards totaling 69,592 shares (41,726 and 27,866 shares) with no per-share price listed.
  • InvestingPro analysis cited by the company suggests CS Disco appears undervalued and holds more cash than debt; the company is also advancing an agentic AI eDiscovery tool and has appointed Aaron Barfoot as CFO effective January 12, 2026.

CS Disco, Inc. (NASDAQ: LAW) reported an insider sale from its Executive Vice President and Chief Human Resources Officer, Karen Herckis, who disposed of 8,171 shares of common stock on February 17, 2026. The shares were sold at prices between $3.04 and $3.08 per share, producing gross proceeds of $25,084. The disposition reduced Herckis' direct holdings in the company; after the transaction she directly owns 132,259 shares, according to a Form 4 filed with the Securities and Exchange Commission.

The sale occurred while the company's stock was trading near its 52-week low of $2.91 and had declined 57% year-to-date. The filing indicates the transaction lowered Herckis' direct ownership stake but does not include any further detail about the motivations behind the sale.

On February 18, 2026, a separate filing shows Herckis acquired two blocks of Common Stock through restricted stock unit awards: 41,726 shares and 27,866 shares. Those awards were reported without a per-share price listed for the transactions, consistent with typical restricted stock unit grant reporting.


Balance sheet and valuation context

Analysis from InvestingPro, cited in the company materials, characterizes CS Disco as appearing undervalued at current market levels and notes the company carries more cash than debt on its balance sheet. The referenced Pro Research Report is presented as the source for deeper financial and growth analysis for investors seeking more detail on LAW's fundamentals.


Operational and leadership developments

Separately, CS Disco has outlined plans to introduce what it describes as the industry’s first scaled agentic AI tool for legal fact investigation and eDiscovery later this year. The offering is intended to expand the company’s AI platform by adding an autonomous, multi-step reasoning engine to its existing Cecilia Q&A capability, with the goal of improving the analysis of large legal datasets.

The company also confirmed a leadership change in finance. Aaron Barfoot was appointed chief financial officer effective January 12, 2026. Barfoot brings over 20 years of experience in finance and corporate development, with prior roles that include CFO at Socure and finance positions at Forter, Anaconda, ClearDATA, and Rackspace. The appointment was confirmed in an SEC filing.


What the filings show

  • February 17, 2026 - Karen Herckis sold 8,171 shares at $3.04 to $3.08 per share, totaling $25,084.
  • Post-sale direct ownership for Herckis is 132,259 shares.
  • February 18, 2026 - Herckis received two restricted stock unit awards totaling 69,592 shares (41,726 and 27,866 shares), with no price per share listed.
  • InvestingPro analysis included with the reporting labels CS Disco as appearing undervalued and notes a cash-heavy balance sheet relative to debt.
  • CS Disco announced plans to launch an agentic AI product for legal fact investigation and eDiscovery later in the year and confirmed Aaron Barfoot as CFO as of January 12, 2026.

The filings provide direct disclosure of the insider sale and subsequent awards, while the company communications highlight product and leadership moves that accompany the reported insider activity.

Risks

  • Stock price volatility - the shares were trading near a 52-week low of $2.91 and were down 57% year-to-date, indicating market sensitivity in equity markets and potentially higher risk for investors in legal technology and software sectors.
  • Product execution timing - the planned launch of an agentic AI tool later this year represents an execution and timing risk for the company’s technology roadmap in the legal tech sector.
  • Insider activity interpretation - the sale reduced a senior executive's direct ownership, which may raise questions among investors about insider sentiment and could affect perceptions in corporate governance and investor relations.

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