Varonis Systems Inc. (VRNS) experienced a significant after-hours surge of 7.77% on Tuesday, following reports of insider buying by company directors.

The stock movement came shortly after regulatory filings revealed that two Varonis directors, Avrohom J. Kess and John J. Gavin Jr., acquired common shares of the company. Insider purchases are often viewed as a positive signal by investors, suggesting that company executives have confidence in the firm's future prospects.

Such transactions typically indicate that those with intimate knowledge of the company's operations and outlook believe the stock represents good value at current levels, which can trigger buying interest from other investors.