Guidewire Software's (GWRE) Buy Rating Reaffirmed at DA Davidson

Key Points

• DA Davidson reaffirmed its “Buy” rating on Guidewire Software and set a $222 price target, implying approximately 46% upside from the stock’s $152.07 price. Analysts overall have a “Moderate Buy” consensus with an average target of $216.23.
• Guidewire’s latest quarterly results exceeded expectations, with adjusted EPS of $0.99 versus the $0.93 consensus estimate and revenue of $411.09 million, up 15.3% year over year.
• Insiders sold 193,232 shares worth roughly $28.8 million over the past three months, primarily to cover tax obligations tied to vested equity awards; insiders own just 0.46% of the company.

Guidewire Software (NYSE:GWRE - Get Free Report)'s stock had its "buy" rating reissued by equities research analysts at DA Davidson in a research report issued to clients and investors on Friday, Benzinga reports. They currently have a $222.00 price objective on the technology company's stock. DA Davidson's price target indicates a potential upside of 45.98% from the stock's current price.

Other equities research analysts also recently issued reports about the stock. JPMorgan Chase & Co. cut their target price on shares of Guidewire Software from $300.00 to $258.00 and set an "overweight" rating on the stock in a research note on Tuesday, July 14th. Piper Sandler reissued an "overweight" rating and issued a $210.00 price objective on shares of Guidewire Software in a research report on Friday, September 4th. Needham & Company LLC reissued a "hold" rating on shares of Guidewire Software in a research report on Friday, September 4th. Citigroup increased their price objective on shares of Guidewire Software from $137.00 to $181.00 and gave the company a "neutral" rating in a research report on Friday, September 4th. Finally, Guggenheim increased their price objective on shares of Guidewire Software from $180.00 to $210.00 and gave the company a "buy" rating in a research report on Thursday, August 27th. Twelve research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $216.23.

Guidewire Software Stock Down 2.1%

GWRE traded down $3.25 during trading hours on Friday, hitting $152.07. 1,227,631 shares of the company's stock were exchanged, compared to its average volume of 1,573,172. Guidewire Software has a 12-month low of $102.30 and a 12-month high of $255.89. The firm has a 50 day moving average of $165.21 and a 200 day moving average of $146.80. The firm has a market cap of $12.66 billion, a P/E ratio of 93.30 and a beta of 1.03. The company has a current ratio of 1.79, a quick ratio of 1.79 and a debt-to-equity ratio of 0.57.

Guidewire Software (NYSE:GWRE - Get Free Report) last announced its earnings results on Thursday, September 3rd. The technology company reported $0.99 earnings per share for the quarter, topping the consensus estimate of $0.93 by $0.06. Guidewire Software had a net margin of 9.44% and a return on equity of 12.66%. The firm had revenue of $411.09 million for the quarter, compared to the consensus estimate of $402.61 million. During the same period in the prior year, the firm earned $0.84 EPS. The firm's revenue for the quarter was up 15.3% on a year-over-year basis. Analysts predict that Guidewire Software will post 2.45 EPS for the current fiscal year.

Insider Transactions at Guidewire Software

In related news, President John P. Mullen sold 39,683 shares of the stock in a transaction on Thursday, September 17th. The shares were sold at an average price of $144.47, for a total value of $5,733,003.01. Following the transaction, the president directly owned 183,647 shares of the company's stock, valued at $26,531,482.09. This trade represents a 17.77% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider James King sold 11,814 shares of the stock in a transaction on Thursday, September 17th. The shares were sold at an average price of $144.47, for a total transaction of $1,706,768.58. Following the completion of the transaction, the insider directly owned 45,939 shares in the company, valued at $6,636,807.33. This trade represents a 20.46% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders sold 193,232 shares of company stock worth $28,794,756. Insiders own 0.46% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. Fiduciary Financial Advisors purchased a new position in shares of Guidewire Software in the 2nd quarter valued at $29,000. Leonteq Securities AG purchased a new position in Guidewire Software during the 1st quarter worth $36,000. Bogart Wealth LLC grew its position in Guidewire Software by 127.8% during the 1st quarter. Bogart Wealth LLC now owns 246 shares of the technology company's stock worth $37,000 after purchasing an additional 138 shares during the last quarter. Harbour Investments Inc. grew its position in Guidewire Software by 83.0% during the 4th quarter. Harbour Investments Inc. now owns 247 shares of the technology company's stock worth $50,000 after purchasing an additional 112 shares during the last quarter. Finally, Silvant Capital Management LLC purchased a new position in Guidewire Software during the 2nd quarter worth $33,000.

Guidewire Software Company Profile

Guidewire Software, Inc develops software for the property and casualty (P&C) insurance industry. Its platform is designed to help insurers manage core operations, modernize legacy systems, and support digital interactions with policyholders, agents, brokers, and other stakeholders.

The company's principal offerings include Guidewire InsuranceSuite, a cloud-based platform with applications such as PolicyCenter for policy administration, BillingCenter for billing and payments, and ClaimCenter for claims management.