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$649k selling shares at an average price of US$104. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 2.0%.

The Last 12 Months Of Insider Transactions At Commvault Systems

The insider, Jennifer DiRico, made the biggest insider sale in the last 12 months. That single transaction was for US$2.0m worth of shares at a price of US$178 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$107. So it may not shed much light on insider confidence at current levels.

Insiders in Commvault Systems didn't buy any shares in the last year. 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!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Commvault Systems insiders own 0.7% of the company, worth about US$30m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Commvault Systems Insiders?

Insiders haven't bought Commvault Systems stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! 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.