Stock Analysis

Have Insiders Sold Guidewire Software, Inc. (NYSE:GWRE) Shares Recently?

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We'd be surprised if Guidewire Software, Inc. (NYSE:GWRE) shareholders haven't noticed that the Chief Financial Officer, Jeffrey Cooper, recently sold US$182k worth of stock at US$62.82 per share. However, the silver lining is that the sale only reduced their total holding by 6.7%, so we're hesitant to read anything much into it, on its own.

Check out our latest analysis for Guidewire Software

The Last 12 Months Of Insider Transactions At Guidewire Software

Over the last year, we can see that the biggest insider sale was by the CEO & Director, Michael Rosenbaum, for US$335k worth of shares, at about US$87.92 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$59.47. So it may not shed much light on insider confidence at current levels.

Over the last year, we can see that insiders have bought 3.00k shares worth US$215k. But they sold 20.97k shares for US$1.6m. Over the last year we saw more insider selling of Guidewire Software shares, than buying. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

NYSE:GWRE Insider Trading Volume September 23rd 2022

I will like Guidewire Software 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 Guidewire Software Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It appears that Guidewire Software insiders own 0.5% of the company, worth about US$26m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Guidewire Software Insider Transactions Indicate?

An insider hasn't bought Guidewire Software stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Guidewire Software. Every company has risks, and we've spotted 2 warning signs for Guidewire Software you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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Guidewire Software

Guidewire Software, Inc. provides software products for property and casualty (P&C) insurers worldwide.

The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.

Analysis AreaScore (0-6)
Future Growth1
Past Performance0
Financial Health4

Read more about these checks in the individual report sections or in our analysis model.

Adequate balance sheet and fair value.