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.

Goosehead Insurance (NASDAQ:GSHD - Get Free Report) was upgraded by research analysts at Cantor Fitzgerald to a "strong-buy" rating in a research report issued on Wednesday,Zacks.com reports.

GSHD has been the topic of several other reports. Keefe, Bruyette & Woods lowered their price objective on Goosehead Insurance from $130.00 to $120.00 and set an "outperform" rating on the stock in a research report on Thursday, July 24th. BMO Capital Markets lowered their price objective on Goosehead Insurance from $142.00 to $110.00 and set a "market perform" rating on the stock in a research report on Friday, July 25th. Piper Sandler reaffirmed a "neutral" rating and issued a $109.00 price objective (down from $122.00) on shares of Goosehead Insurance in a research report on Thursday, July 24th. JPMorgan Chase & Co. lowered their price objective on 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 reaffirmed a "market outperform" rating and issued a $150.00 price objective on shares of Goosehead Insurance in a research report on Thursday, April 24th. One research analyst has rated the stock with a sell rating, five have issued a hold rating, four have issued a buy rating and one has issued a strong buy rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Hold" and a consensus target price of $110.91.

Goosehead Insurance Stock Performance

Shares of GSHD opened at $90.68 on Wednesday. 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 moving average price is $97.99 and its 200-day moving average price is $106.20. Goosehead Insurance has a 52 week low of $79.33 and a 52 week high of $130.39. The stock has a market cap of $3.41 billion, a P/E ratio of 80.25, a P/E/G ratio of 7.55 and a beta of 1.31.

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

Insider Buying and Selling at Goosehead Insurance

In other Goosehead Insurance news, major shareholder Lindy Langston sold 2,853 shares of the business's stock in a transaction on Wednesday, May 28th. The shares were sold at an average price of $110.16, for a total transaction of $314,286.48. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Mark E. Jr. Jones bought 1,149 shares of the firm's stock in a transaction on Tuesday, July 29th. The shares were bought at an average price of $86.08 per share, with a total value of $98,905.92. Following the completion of the purchase, the chief financial officer owned 3,491 shares in the company, valued at approximately $300,505.28. The trade was a 49.06% increase in their position. The disclosure for this purchase can be found here. In the last ninety days, insiders sold 126,459 shares of company stock worth $11,533,528. Insiders own 48.35% of the company's stock.

Institutional Investors Weigh In On Goosehead Insurance

Several hedge funds and other institutional investors have recently modified their holdings of the stock. WINTON GROUP Ltd increased its stake in shares of Goosehead Insurance by 56.9% in the 2nd quarter. WINTON GROUP Ltd now owns 17,110 shares of the company's stock worth $1,805,000 after purchasing an additional 6,208 shares in the last quarter. Natixis purchased a new stake in shares of Goosehead Insurance in the 2nd quarter worth $1,013,000. Jump Financial LLC increased its stake in shares of Goosehead Insurance by 28.3% in the 2nd quarter. Jump Financial LLC now owns 12,799 shares of the company's stock worth $1,350,000 after purchasing an additional 2,825 shares in the last quarter. Cresset Asset Management LLC increased its stake in shares of Goosehead Insurance by 10.4% in the 2nd quarter. Cresset Asset Management LLC now owns 3,752 shares of the company's stock worth $396,000 after purchasing an additional 352 shares in the last quarter. Finally, EverSource Wealth Advisors LLC increased its stake in shares of Goosehead Insurance by 480.4% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 325 shares of the company's stock worth $34,000 after purchasing an additional 269 shares in the last quarter.

Goosehead Insurance Company Profile

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.

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