Cantor Fitzgerald Upgrades Goosehead Insurance (NASDAQ:GSHD) to "Strong-Buy"

Key Points

• Cantor Fitzgerald upgraded Goosehead Insurance (NASDAQ:GSHD) to a "strong-buy" rating, indicating increased confidence in the stock's performance.
• The company reported quarterly earnings of $0.49 per share, missing estimates, but showed a revenue increase of 20.4% compared to the same quarter last year.
• Insider activity included significant selling by a major shareholder and purchasing by the CFO, with insiders holding 48.35% of the company's stock.

Cantor Fitzgerald upgraded shares of Goosehead Insurance (NASDAQ:GSHD - Free Report) to a strong-buy rating in a research report sent to investors on Wednesday morning,Zacks.com reports. Cantor Fitzgerald also issued estimates for Goosehead Insurance's FY2025 earnings at $1.18 EPS and FY2026 earnings at $1.57 EPS.

GSHD has been the subject of several other research reports. BMO Capital Markets reduced their price objective on shares of Goosehead Insurance from $142.00 to $110.00 and set a "market perform" rating for the company in a research note on Friday, July 25th. Keefe, Bruyette & Woods reduced their price objective on shares of Goosehead Insurance from $130.00 to $120.00 and set an "outperform" rating for the company in a research note on Thursday, July 24th. JMP Securities reaffirmed a "market outperform" rating and issued a $150.00 price objective on shares of Goosehead Insurance in a research note on Thursday, April 24th. UBS Group reduced their price objective on shares of Goosehead Insurance from $140.00 to $136.00 and set a "buy" rating for the company in a research note on Monday, July 28th. Finally, JPMorgan Chase & Co. reduced their price objective on shares of Goosehead Insurance from $100.00 to $98.00 and set a "neutral" rating for the company in a research note on Thursday, April 24th. One investment analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Goosehead Insurance presently has a consensus rating of "Hold" and an average target price of $110.91.

Goosehead Insurance Stock Up 0.5%

Shares of NASDAQ:GSHD traded up $0.41 during trading on Wednesday, reaching $85.70. 73,210 shares of the company traded hands, compared to its average volume of 301,630. The firm has a fifty day simple moving average of $96.51 and a 200 day simple moving average of $105.75. The firm has a market cap of $3.22 billion, a P/E ratio of 75.84, a price-to-earnings-growth ratio of 7.37 and a beta of 1.31. Goosehead Insurance has a 1-year low of $79.33 and a 1-year 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.

Goosehead Insurance (NASDAQ:GSHD - Get Free Report) last issued its earnings results on Wednesday, July 23rd. The company reported $0.49 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.53 by ($0.04). The company had revenue of $94.03 million for the quarter, compared to analyst estimates of $94.18 million. Goosehead Insurance had a net margin of 8.76% and a negative return on equity of 59.49%. The company's quarterly revenue was up 20.4% on a year-over-year basis. During the same period last year, the business earned $0.43 EPS. Goosehead Insurance has set its FY 2025 guidance at EPS. Analysts anticipate that Goosehead Insurance will post 0.83 earnings per share for the current fiscal year.

Insider Activity

In other news, major shareholder Lindy Langston sold 11,042 shares of the business's stock in a transaction dated Tuesday, May 27th. The shares were sold at an average price of $110.20, for a total transaction of $1,216,828.40. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, major shareholder & Robyn Jones Descendants Mark sold 60,000 shares of the business's stock in a transaction dated Wednesday, August 13th. The stock was sold at an average price of $88.23, for a total transaction of $5,293,800.00. Following the transaction, the insider owned 132,349 shares in the company, valued at approximately $11,677,152.27. The trade was a 31.19% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 255,665 shares of company stock worth $22,840,936. Insiders own 37.76% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Wasatch Advisors LP increased its holdings in shares of Goosehead Insurance by 12.6% during the 2nd quarter. Wasatch Advisors LP now owns 2,275,369 shares of the company's stock worth $240,074,000 after purchasing an additional 253,777 shares during the period. State Street Corp increased its stake in Goosehead Insurance by 1.4% in the second quarter. State Street Corp now owns 1,027,500 shares of the company's stock valued at $108,412,000 after acquiring an additional 14,311 shares during the period. Geode Capital Management LLC increased its stake in Goosehead Insurance by 25.4% in the second quarter. Geode Capital Management LLC now owns 705,284 shares of the company's stock valued at $74,422,000 after acquiring an additional 143,038 shares during the period. Durable Capital Partners LP bought a new stake in Goosehead Insurance in the second quarter valued at about $71,832,000. Finally, Balyasny Asset Management L.P. increased its stake in Goosehead Insurance by 118.7% in the second quarter. Balyasny Asset Management L.P. now owns 556,760 shares of the company's stock valued at $58,744,000 after acquiring an additional 302,130 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.