With Varonis Systems, Inc.'s (NASDAQ:VRNS)) price down 4.7% this week, insiders might find some solace having sold US$578k worth of shares earlier this year.

Insiders at Varonis Systems, Inc. (NASDAQ:VRNS) sold US$578k worth of stock at an average price of US$54.41 a share over the past year, making the most of their investment. The company's market worth decreased by US$264m over the past week after the stock price dropped 4.7%, although insiders were able to minimize their losses

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Varonis Systems

The Last 12 Months Of Insider Transactions At Varonis Systems

The Chief Information Officer & VP of Technical Services, Gilad Raz, made the biggest insider sale in the last 12 months. That single transaction was for US$201k worth of shares at a price of US$68.57 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$48.64. So it is hard to draw any strong conclusion from it.

In the last year Varonis Systems insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Varonis Systems

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 1.6% of Varonis Systems shares, worth about US$84m. 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 Varonis Systems Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. We don't take much encouragement from the transactions by Varonis Systems insiders. But it's good to see that insiders own shares in the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Varonis Systems has 3 warning signs we think you should be aware of.

Of course Varonis Systems may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.