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$1.4m selling shares at an average price of US$66.89. That sale reduced their total holding by 10% which is hardly insignificant, but far from the worst we've seen.
Check out our latest analysis for Commvault Systems
The Last 12 Months Of Insider Transactions At Commvault Systems
Notably, that recent sale by Sanjay Mirchandani is the biggest insider sale of Commvault Systems shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of US$67.18. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
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 want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Commvault Systems better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does Commvault Systems Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Commvault Systems insiders own about US$43m worth of shares. That equates to 1.4% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
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. Looking to the last twelve months, our data doesn't show any insider buying. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 1 warning sign for Commvault Systems you should know about.
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, 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.