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 sale reduced their total holding by 49% which is hardly insignificant, but far from the worst we've seen.

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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 an insider was selling shares at slightly below the current price (US$34.39). 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. It is worth noting that this sale was only 49% of David Bass's holding.

Over the last year, we can see that insiders have bought 121.70k shares worth US$2.2m. But they sold 184.00k shares for US$6.0m. David Bass ditched 184.00k shares over the year. The average price per share was US$32.36. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Does Varonis 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. Insiders own 2.5% of Varonis Systems shares, worth about US$96m. 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?

An insider sold stock recently, but they haven't been buying. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we found 2 warning signs for Varonis Systems that deserve your attention before buying any shares.

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 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.