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

We wouldn't blame Guidewire Software, Inc. (NYSE:GWRE) shareholders if they were a little worried about the fact that John Mullen, the President & Chief Revenue Officer recently netted about US$893k selling shares at an average price of US$77.17. However, that sale only accounted for 8.1% of their holding, so arguably it doesn't say much about their conviction.

View our latest analysis for Guidewire Software

Guidewire Software Insider Transactions Over The Last Year

Notably, that recent sale by John Mullen is the biggest insider sale of Guidewire Software 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$77.15. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Happily, we note that in the last year insiders paid US$215k for 3.00k shares. But insiders sold 36.88k shares worth US$2.6m. Over the last year we saw more insider selling of Guidewire Software shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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?

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Guidewire Software insiders own 0.5% of the company, worth about US$33m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Guidewire Software Insiders?

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. We'd practice some caution before buying! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. While conducting our analysis, we found that Guidewire Software has 2 warning signs and it would be unwise to ignore these.

Of course Guidewire Software may not be the best stock to buy. So you may wish to see this free collection of high quality 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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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.