We wouldn't blame Commvault Systems, Inc. (NASDAQ:CVLT) shareholders if they were a little worried about the fact that Sanjay Mirchandani, the President recently netted about US$843k selling shares at an average price of US$124. However, that sale only accounted for 5.0% of their holding, so arguably it doesn't say much about their conviction.

Commvault Systems Insider Transactions Over The Last Year

Notably, that recent sale by President Sanjay Mirchandani was not the only time they sold Commvault Systems shares this year. They previously made an even bigger sale of -US$11m worth of shares at a price of US$182 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$120. So it may not tell us anything about how insiders feel about the current share price.

Commvault Systems insiders didn't buy any shares 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like Commvault Systems better if I see some big insider buys.

Does Commvault Systems Boast High 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. Commvault Systems insiders own about US$45m worth of shares. That equates to 0.9% of the company. 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 Commvault Systems Insider Transactions Indicate?

Insiders sold Commvault Systems shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Commvault Systems.

But note: Commvault 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 of direct interests only, but not derivative transactions or indirect interests.

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.