This Insider Has Just Sold Shares In Guidewire Software
Some Guidewire Software, Inc. (NYSE:GWRE) shareholders may be a little concerned to see that the President, John Mullen, recently sold a substantial US$1.5m worth of stock at a price of US$192 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 5.3%.
The Last 12 Months Of Insider Transactions At Guidewire Software
Notably, that recent sale by President John Mullen was not the only time they sold Guidewire Software shares this year. They previously made an even bigger sale of -US$1.8m worth of shares at a price of US$249 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. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$194. So it may not tell us anything about how insiders feel about the current share price.
Guidewire Software insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
View our latest analysis for Guidewire Software
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Guidewire Software insiders own 0.5% of the company, worth about US$82m. 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 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. Looking to the last twelve months, our data doesn't show any insider buying. But since Guidewire Software is profitable and growing, we're not too worried by this. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. 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.