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%.
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!
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.
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