Goosehead Insurance (NASDAQ:GSHD) Stock Rating Cut to Strong Sell at Zacks Research

Key Points

• Zacks Research downgraded Goosehead Insurance to “strong sell” from “hold,” contrasting with mixed analyst views. The stock has a consensus “hold” rating and an average price target of $64.42.
• Goosehead shares opened at $48.50, down 4.2%, with a market capitalization of approximately $1.72 billion. The company’s latest quarterly earnings beat estimates, reporting $0.64 EPS versus expectations of $0.47, while revenue rose 20.6% year over year but fell short of forecasts.
• Insider activity was mixed: insiders bought roughly $11.8 million of stock and sold about $18.1 million over the past 90 days. Corporate insiders own approximately 38.07% of the company.

Goosehead Insurance (NASDAQ:GSHD - Get Free Report) was downgraded by research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued to clients and investors on Thursday, Zacks reports.

Other equities research analysts also recently issued reports about the stock. Citigroup restated a "market outperform" rating on shares of Goosehead Insurance in a research note on Monday, October 12th. Deutsche Bank Aktiengesellschaft set a $80.00 price target on Goosehead Insurance in a research report on Monday, October 12th. JPMorgan Chase & Co. reduced their price target on Goosehead Insurance from $68.00 to $60.00 and set a "neutral" rating on the stock in a research report on Thursday, October 1st. Truist Financial decreased their price objective on Goosehead Insurance from $58.00 to $48.00 and set a "hold" rating for the company in a report on Tuesday, October 13th. Finally, Texas Capital raised Goosehead Insurance from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, September 29th. One analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, six have assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus target price of $64.42.

Goosehead Insurance Trading Down 4.2%

Shares of NASDAQ:GSHD opened at $48.50 on Thursday. Goosehead Insurance has a 12-month low of $33.68 and a 12-month high of $79.85. The business's fifty day simple moving average is $55.18 and its 200-day simple moving average is $50.23. The company has a market capitalization of $1.72 billion, a PE ratio of 35.40, a P/E/G ratio of 1.91 and a beta of 1.46.

Goosehead Insurance (NASDAQ:GSHD - Get Free Report) last issued its quarterly earnings data on Wednesday, July 22nd. The company reported $0.64 earnings per share for the quarter, beating analysts' consensus estimates of $0.47 by $0.17. The company had revenue of $95.63 million for the quarter, compared to the consensus estimate of $103.30 million. Goosehead Insurance had a negative return on equity of 21.00% and a net margin of 8.78%. The firm's revenue for the quarter was up 20.6% compared to the same quarter last year. During the same quarter last year, the company earned $0.49 earnings per share. Research analysts predict that Goosehead Insurance will post 1.45 EPS for the current year.

Insider Activity at Goosehead Insurance

In other Goosehead Insurance news, major shareholder & Robyn Jones Descendants Mark sold 22,481 shares of the business's stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $66.87, for a total transaction of $1,503,304.47. Following the sale, the insider owned 6,767,661 shares of the company's stock, valued at approximately $452,553,491.07. The trade was a 0.33% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, major shareholder & The Bear Irrevocable T. Chick sold 5,000 shares of the company's stock in a transaction that occurred on Tuesday, July 28th. The shares were sold at an average price of $65.03, for a total transaction of $325,150.00. Following the transaction, the insider owned 58,530 shares in the company, valued at $3,806,205.90. The trade was a 7.87% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have purchased 226,333 shares of company stock valued at $11,816,524 and have sold 267,000 shares valued at $18,056,139. Corporate insiders own 38.07% of the company's stock.

Institutional Investors Weigh In On Goosehead Insurance

Large investors have recently made changes to their positions in the stock. Wasatch Advisors LP increased its holdings in shares of Goosehead Insurance by 32.3% in the first quarter. Wasatch Advisors LP now owns 2,292,227 shares of the company's stock valued at $97,786,000 after purchasing an additional 559,087 shares during the period. Janus Henderson Group PLC raised its stake in shares of Goosehead Insurance by 3,485.1% in the first quarter. Janus Henderson Group PLC now owns 386,906 shares of the company's stock worth $16,506,000 after purchasing an additional 376,114 shares during the last quarter. Bank of New York Mellon Corp purchased a new position in shares of Goosehead Insurance in the second quarter worth about $6,545,000. Bank of America Corp DE raised its stake in shares of Goosehead Insurance by 28.2% in the first quarter. Bank of America Corp DE now owns 329,333 shares of the company's stock worth $14,049,000 after purchasing an additional 72,527 shares during the last quarter. Finally, Principal Financial Group Inc. lifted its holdings in shares of Goosehead Insurance by 23.2% during the first quarter. Principal Financial Group Inc. now owns 219,745 shares of the company's stock worth $9,374,000 after purchasing an additional 41,334 shares during the period.

Goosehead Insurance Company Profile

Goosehead Insurance, Inc is an independent insurance agency that distributes personal and commercial insurance products through a network of corporate and franchise locations. The company uses technology and relationships with multiple insurance carriers to help customers compare coverage options and select policies suited to their needs.

Its offerings primarily include homeowners, automobile, renters, flood, umbrella and other personal insurance products, along with selected commercial insurance solutions.

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