Some Guidewire Software, Inc. (NYSE:GWRE) shareholders may be a little concerned to see that the CEO & Director, Michael Rosenbaum, recently sold a substantial US$751k worth of stock at a price of US$135 per share. However, that sale only accounted for 3.5% of their holding, so arguably it doesn't say much about their conviction.

Guidewire Software Insider Transactions Over The Last Year

In fact, the recent sale by CEO & Director Michael Rosenbaum was not their only sale of Guidewire Software shares this year. They previously made an even bigger sale of -US$2.4m worth of shares at a price of US$91.77 per share. That means that even when the share price was below the current price of US$137, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 12% of Michael Rosenbaum's holding.

Guidewire Software insiders didn't buy any shares over the last year. 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!

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Insider Ownership Of Guidewire Software

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Guidewire Software insiders own about US$56m worth of shares. That equates to 0.5% 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.

What Might The Insider Transactions At Guidewire Software Tell Us?

Insiders sold Guidewire Software shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Guidewire Software. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Guidewire Software.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

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