BMO Capital Markets Issues Pessimistic Forecast for Goosehead Insurance (NASDAQ:GSHD) Stock Price

Key Points

• BMO Capital Markets has reduced its price target for Goosehead Insurance (NASDAQ:GSHD) from $142.00 to $110.00, maintaining a "market perform" rating, indicating a potential upside of 24.82%.
• Goosehead Insurance reported $0.49 EPS for the last quarter, missing estimates by $0.04, with a revenue of $94.03 million.
• The stock has experienced mixed ratings, with one sell rating, five hold ratings, and four buy ratings, leading to an average rating of "Hold" with a consensus price target of $109.90.
• Recent insider transactions show significant selling activity, with insiders selling 118,966 shares valued at over $12 million in the past 90 days.

Goosehead Insurance (NASDAQ:GSHD - Free Report) had its target price decreased by BMO Capital Markets from $142.00 to $110.00 in a research report sent to investors on Friday,Benzinga reports. BMO Capital Markets currently has a market perform rating on the stock.

A number of other research analysts also recently weighed in on the stock. UBS Group cut their price target on shares of Goosehead Insurance from $145.00 to $140.00 and set a "buy" rating on the stock in a report on Monday, April 28th. Piper Sandler restated a "neutral" rating and issued a $109.00 price target (down from $122.00) on shares of Goosehead Insurance in a research report on Thursday. Keefe, Bruyette & Woods decreased their target price on shares of Goosehead Insurance from $130.00 to $120.00 and set an "outperform" rating on the stock in a research report on Thursday. JPMorgan Chase & Co. reduced their price target on shares of Goosehead Insurance from $100.00 to $98.00 and set a "neutral" rating on the stock in a research report on Thursday, April 24th. Finally, JMP Securities restated a "market outperform" rating and issued a $150.00 price target on shares of Goosehead Insurance in a research report on Thursday, April 24th. One investment analyst has rated the stock with a sell rating, five have given a hold rating and four have issued a buy rating to the company's stock. According to data from MarketBeat, Goosehead Insurance currently has a consensus rating of "Hold" and an average price target of $109.90.

Goosehead Insurance Price Performance

NASDAQ:GSHD traded down $2.72 during trading hours on Friday, reaching $84.90. 468,873 shares of the company's stock were exchanged, compared to its average volume of 286,796. The company has a market capitalization of $3.19 billion, a P/E ratio of 75.13, a price-to-earnings-growth ratio of 7.25 and a beta of 1.42. Goosehead Insurance has a 12 month low of $79.33 and a 12 month high of $130.39. The company has a quick ratio of 2.92, a current ratio of 2.92 and a debt-to-equity ratio of 2.10. The business's 50-day simple moving average is $103.63 and its two-hundred day simple moving average is $107.87.

Goosehead Insurance (NASDAQ:GSHD - Get Free Report) last posted its quarterly earnings data on Wednesday, July 23rd. The company reported $0.49 EPS for the quarter, missing analysts' consensus estimates of $0.53 by ($0.04). Goosehead Insurance had a negative return on equity of 59.49% and a net margin of 8.76%. The firm had revenue of $94.03 million during the quarter, compared to analyst estimates of $94.18 million. During the same period in the prior year, the business posted $0.43 EPS. The company's revenue for the quarter was up 20.4% on a year-over-year basis. Sell-side analysts expect that Goosehead Insurance will post 0.83 EPS for the current fiscal year.

Insider Buying and Selling

In other news, major shareholder & Robyn Jones Descendants Mark sold 21,385 shares of the stock in a transaction on Wednesday, May 14th. The shares were sold at an average price of $104.76, for a total transaction of $2,240,292.60. Following the completion of the sale, the insider owned 132,349 shares of the company's stock, valued at $13,864,881.24. This represents a 13.91% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, General Counsel John Terry O'connor sold 2,500 shares of the stock in a transaction on Wednesday, May 14th. The stock was sold at an average price of $104.42, for a total transaction of $261,050.00. Following the transaction, the general counsel owned 1,000 shares of the company's stock, valued at $104,420. The trade was a 71.43% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 118,966 shares of company stock valued at $12,407,821 over the last ninety days. Insiders own 37.76% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the business. Harbor Investment Advisory LLC boosted its holdings in Goosehead Insurance by 9.9% during the second quarter. Harbor Investment Advisory LLC now owns 1,083 shares of the company's stock worth $114,000 after purchasing an additional 98 shares during the last quarter. Janus Henderson Group PLC raised its position in shares of Goosehead Insurance by 0.6% in the fourth quarter. Janus Henderson Group PLC now owns 22,109 shares of the company's stock valued at $2,371,000 after purchasing an additional 139 shares during the period. TCTC Holdings LLC raised its position in shares of Goosehead Insurance by 117.1% in the first quarter. TCTC Holdings LLC now owns 330 shares of the company's stock valued at $39,000 after purchasing an additional 178 shares during the period. KBC Group NV raised its position in shares of Goosehead Insurance by 20.7% in the first quarter. KBC Group NV now owns 1,101 shares of the company's stock valued at $130,000 after purchasing an additional 189 shares during the period. Finally, Bessemer Group Inc. increased its position in Goosehead Insurance by 192.9% during the first quarter. Bessemer Group Inc. now owns 290 shares of the company's stock worth $34,000 after acquiring an additional 191 shares during the period.

About Goosehead Insurance

Goosehead Insurance, Inc operates as a holding company for Goosehead Financial, LLC that engages in the provision of personal lines insurance agency services in the United States. The company offers homeowner's, automotive, dwelling property, flood, wind, earthquake, excess liability or umbrella, motorcycle, recreational vehicle, general liability, property, and life insurance products and services.