Varonis Systems Inc. (VRNS) experienced a significant surge of 11.58% in after-hours trading on Tuesday, following reports of insider purchases by company directors.

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

Such transactions typically indicate that those closest to the business believe the stock represents good value at current levels, which can trigger increased buying interest from the broader market.