Have Insiders Sold Guidewire Software Shares Recently?

We wouldn't blame Guidewire Software, Inc. (NYSE:GWRE) shareholders if they were a little worried about the fact that Michael Rosenbaum, the CEO & Director recently netted about US$4.0m selling shares at an average price of US$172. That's a big disposal, and it decreased their holding size by 12%, which is notable but not too bad.

See our latest analysis for Guidewire Software

Guidewire Software Insider Transactions Over The Last Year

Notably, that recent sale by Michael Rosenbaum is the biggest insider sale of Guidewire Software shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (US$177). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 12% of Michael Rosenbaum's stake.

In the last year Guidewire Software insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Guidewire Software insiders own 0.6% of the company, worth about US$82m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Guidewire Software Tell Us?

Insiders haven't bought Guidewire Software stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! 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. You'd be interested to know, that we found 1 warning sign for Guidewire Software and we suggest you have a look.

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 of direct interests only, but not derivative transactions or indirect interests.

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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.