This Insider Has Just Sold Shares In Guidewire Software, Inc. (NYSE:GWRE)

By
Simply Wall St
Published
December 13, 2019

We note that the Guidewire Software, Inc. (NYSE:GWRE) Independent Director, Guy Dubois, recently sold US$75k worth of stock for US$117 per share. However we note that the sale only shrunk their holding by 5.5%.

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 Co-Founder & Chairman, Marcus Ryu, for US$5.3m worth of shares, at about US$107 per share. That means that an insider was selling shares at around the current price of US$105. 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.

Over the last year we saw more insider selling of Guidewire Software shares, than buying. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

NYSE:GWRE Recent Insider Trading, December 13th 2019

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Guidewire Software

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Guidewire Software insiders own about US$14m worth of shares. That equates to 0.2% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Guidewire Software Insiders?

Insiders haven'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 think twice before buying! If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

But note: Guidewire Software may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.

Promoted
If you're looking to trade Guidewire Software, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.


Simply Wall St character - Warren

Simply Wall St

Simply Wall St is a financial technology startup focused on providing unbiased, high-quality research coverage on every listed company in the world. Our research team consists of equity analysts with a public, market-beating track record. Learn more about the team behind Simply Wall St.