Goosehead Insurance (NASDAQ:GSHD) Upgraded at Texas Capital

Key Points

• Texas Capital upgraded Goosehead Insurance from “hold” to “strong buy.” The stock has a consensus “moderate buy” rating and an average price target of $68.45, based on MarketBeat data.
• Goosehead shares opened at $43.99, down 0.9%, well below their 52-week high of $79.85. The company’s latest quarterly results beat EPS expectations ($0.64 versus $0.47), although revenue of $95.63 million fell short of estimates.
• Insider activity was mixed but net buying was positive: Durable Capital Partners purchased 150,000 shares for about $7.1 million, while insiders collectively bought more shares than they sold over the past three months. Insiders own approximately 38.07% of the company.

Goosehead Insurance (NASDAQ:GSHD - Get Free Report) was upgraded by equities research analysts at Texas Capital from a "hold" rating to a "strong-buy" rating in a research report issued to clients and investors on Tuesday, Zacks reports.

GSHD has been the subject of a number of other reports. Piper Sandler upped their price objective on Goosehead Insurance from $52.00 to $72.00 and gave the stock an "overweight" rating in a report on Wednesday, July 15th. Cantor Fitzgerald reissued an "overweight" rating and set a $76.00 price target on shares of Goosehead Insurance in a research report on Thursday, July 23rd. Weiss Ratings lowered Goosehead Insurance from a "hold (c)" rating to a "hold (c-)" rating in a research note on Friday, September 18th. Keefe, Bruyette & Woods cut their price objective on Goosehead Insurance from $80.00 to $72.00 and set an "outperform" rating on the stock in a report on Thursday, July 23rd. Finally, Royal Bank Of Canada boosted their target price on Goosehead Insurance from $55.00 to $58.00 and gave the stock a "sector perform" rating in a report on Thursday, July 23rd. One investment analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Goosehead Insurance presently has a consensus rating of "Moderate Buy" and a consensus price target of $68.45.

Goosehead Insurance Stock Down 0.9%

Shares of NASDAQ:GSHD opened at $43.99 on Tuesday. The company has a market cap of $1.56 billion, a P/E ratio of 32.11, a P/E/G ratio of 1.58 and a beta of 1.36. The business has a fifty day simple moving average of $61.81 and a 200-day simple moving average of $49.93. Goosehead Insurance has a 52 week low of $33.68 and a 52 week high of $79.85.

Goosehead Insurance (NASDAQ:GSHD - Get Free Report) last posted its quarterly earnings results on Wednesday, July 22nd. The company reported $0.64 EPS for the quarter, beating the consensus estimate of $0.47 by $0.17. Goosehead Insurance had a negative return on equity of 21.00% and a net margin of 8.78%.The company had revenue of $95.63 million during the quarter, compared to analysts' expectations of $103.30 million. During the same quarter in the previous year, the business earned $0.49 EPS. The firm's revenue was up 20.6% on a year-over-year basis. Sell-side analysts expect that Goosehead Insurance will post 1.46 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, major shareholder Durable Capital Partners Lp bought 150,000 shares of the stock in a transaction dated Tuesday, September 22nd. The stock was acquired at an average price of $47.32 per share, for a total transaction of $7,098,000.00. Following the completion of the purchase, the insider owned 2,720,260 shares in the company, valued at $128,722,703.20. This represents a 5.84% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, major shareholder & The Bear Irrevocable T. Chick sold 5,000 shares of the business's stock in a transaction that occurred on Tuesday, July 28th. The stock was sold at an average price of $65.03, for a total value of $325,150.00. Following the transaction, the insider directly owned 58,530 shares in the company, valued at $3,806,205.90. This trade represents a 7.87% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders purchased 339,979 shares of company stock worth $18,446,632 and sold 267,000 shares worth $18,056,139. Company insiders own 38.07% of the company's stock.

Hedge Funds Weigh In On Goosehead Insurance

A number of institutional investors and hedge funds have recently added to or reduced their stakes in GSHD. MassMutual Private Wealth & Trust FSB lifted its stake in shares of Goosehead Insurance by 484.1% in the second quarter. MassMutual Private Wealth & Trust FSB now owns 514 shares of the company's stock worth $25,000 after acquiring an additional 426 shares in the last quarter. Versant Capital Management Inc raised its position in shares of Goosehead Insurance by 471.9% in the 2nd quarter. Versant Capital Management Inc now owns 772 shares of the company's stock valued at $37,000 after purchasing an additional 637 shares in the last quarter. Integrated Wealth Concepts LLC purchased a new position in shares of Goosehead Insurance during the 2nd quarter valued at approximately $48,000. Nykredit A S acquired a new stake in shares of Goosehead Insurance during the second quarter worth approximately $50,000. Finally, AXQ Capital LP acquired a new stake in shares of Goosehead Insurance during the fourth quarter worth approximately $221,000.

About Goosehead Insurance

Goosehead Insurance, Inc is an independent insurance agency that distributes personal and commercial insurance products through a network of corporate and franchised locations. The company represents multiple insurance carriers, allowing its agents to compare coverage options and help customers select policies based on their individual needs.

Its product offerings include homeowners, auto, renters, flood, personal umbrella and other personal-lines insurance, along with selected commercial insurance products.

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