CTO & VP of Advanced Services David Aviv Sold A Bunch Of Shares In Radware

We wouldn't blame Radware Ltd. (NASDAQ:RDWR) shareholders if they were a little worried about the fact that David Aviv, the CTO & VP of Advanced Services recently netted about US$1.0m selling shares at an average price of US$33.59. That sale reduced their total holding by 32% which is hardly insignificant, but far from the worst we've seen.

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Radware Insider Transactions Over The Last Year

Notably, that recent sale by David Aviv is the biggest insider sale of Radware shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of US$32.64. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

All up, insiders sold more shares in Radware than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for Radware

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Does Radware 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. We usually like to see fairly high levels of insider ownership. Radware insiders own 12% of the company, currently worth about US$178m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Radware Tell Us?

Insiders sold stock recently, but they haven't been buying. 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. While it's good to be aware of 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. Case in point: We've spotted 2 warning signs for Radware you should be aware of.

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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.

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