Trade Alert: Co-Founder Of Varonis Systems Yakov Faitelson Has Sold Stock

Simply Wall St · 05/13 10:38

Some Varonis Systems, Inc. (NASDAQ:VRNS) shareholders may be a little concerned to see that the Co-Founder, Yakov Faitelson, recently sold a substantial US$13m worth of stock at a price of US$45.23 per share. That's a big disposal, and it decreased their holding size by 31%, 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 Yakov Faitelson 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 around the current price of US$44.51. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

In total, Varonis Systems insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

NasdaqGS:VRNS Insider Trading Volume May 13th 2024

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Insider Ownership Of Varonis Systems

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Varonis Systems insiders own about US$106m worth of shares (which is 2.1% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Varonis Systems Tell Us?

Insiders haven't bought Varonis Systems stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. In terms of investment risks, we've identified 2 warning signs with Varonis Systems and understanding these should be part of your investment process.

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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.