We wouldn't blame Varonis Systems, Inc. (NASDAQ:VRNS) shareholders if they were a little worried about the fact that David Bass, the Executive VP of Engineering & CTO recently netted about US$5.0m selling shares at an average price of US$33.00. That's a big disposal, and it decreased their holding size by 49%, which is notable but not too bad.
See our latest analysis for Varonis Systems
The Last 12 Months Of Insider Transactions At Varonis Systems
In fact, the recent sale by David Bass was the biggest sale of Varonis Systems shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of US$35.36, an insider wanted to cash in some shares. 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. 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. We note that the biggest single sale was only 49%of David Bass's holding.
Happily, we note that in the last year insiders paid US$858k for 39.96k shares. On the other hand they divested 184.00k shares, for US$6.0m. David Bass sold a total of 184.00k shares over the year at an average price of US$32.36. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insider Ownership Of Varonis Systems
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It appears that Varonis Systems insiders own 2.4% of the company, worth about US$92m. 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 Does This Data Suggest About Varonis Systems Insiders?
An insider sold Varonis Systems shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Varonis Systems. At Simply Wall St, we found 2 warning signs for Varonis Systems that deserve your attention before buying any shares.
Of course Varonis Systems 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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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.