Bullish insiders at Varonis Systems, Inc. (NASDAQ:VRNS) loaded up on US$2.3m of stock earlier this year
In the last year, multiple insiders have substantially increased their holdings of Varonis Systems, Inc. (NASDAQ:VRNS) stock, indicating that insiders' optimism about the company's prospects has increased.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Varonis Systems
The Last 12 Months Of Insider Transactions At Varonis Systems
In the last twelve months, the biggest single purchase by an insider was when Senior Vice President of Worldwide Sales James O'Boyle bought US$1.0m worth of shares at a price of US$16.72 per share. Even though the purchase was made at a significantly lower price than the recent price (US$24.51), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Over the last year, we can see that insiders have bought 129.25k shares worth US$2.3m. But they sold 8.91k shares for US$295k. In the last twelve months there was more buying than selling by Varonis Systems insiders. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Varonis Systems is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
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. It appears that Varonis Systems insiders own 2.6% of the company, worth about US$71m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Varonis Systems Tell Us?
It doesn't really mean much that no insider has traded Varonis Systems shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Varonis Systems and their transactions don't cause us concern. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 1 warning sign for Varonis Systems and we suggest you have a look.
But note: Varonis Systems 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, but not derivative transactions.
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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.
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