DA Davidson Forecasts Strong Price Appreciation for Guidewire Software (NYSE:GWRE) Stock

Key Points

• DA Davidson has raised its target price for Guidewire Software (NYSE:GWRE) from $246.00 to $250.00, maintaining a "neutral" rating, which implies a downside risk of 4.20% from its previous close.
• Multiple research firms, including Oppenheimer and Stifel Nicolaus, have set higher price targets for the stock, with Oppenheimer raising its target to $300.00 and the consensus price target now at $272.42.
• Guidewire Software reported a substantial 22.3% increase in quarterly revenue year-over-year, achieving earnings per share of $0.84, exceeding analysts' expectations of $0.62.

Guidewire Software (NYSE:GWRE - Get Free Report) had its target price increased by equities researchers at DA Davidson from $246.00 to $250.00 in a research note issued to investors on Monday,Benzinga reports. The firm currently has a "neutral" rating on the technology company's stock. DA Davidson's price objective suggests a potential downside of 4.20% from the stock's previous close.

Several other research firms have also weighed in on GWRE. JPMorgan Chase & Co. raised their price objective on shares of Guidewire Software from $271.00 to $288.00 and gave the stock an "overweight" rating in a report on Wednesday, June 25th. Raymond James Financial reaffirmed an "outperform" rating and set a $275.00 price objective (up previously from $255.00) on shares of Guidewire Software in a report on Friday. Citigroup boosted their price objective on Guidewire Software from $199.00 to $247.00 and gave the stock a "neutral" rating in a research note on Thursday, June 5th. Oppenheimer boosted their price objective on Guidewire Software from $275.00 to $300.00 and gave the stock an "outperform" rating in a research note on Friday. Finally, Stifel Nicolaus boosted their price objective on Guidewire Software from $270.00 to $300.00 and gave the stock a "buy" rating in a research note on Friday. Nine equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, Guidewire Software has a consensus rating of "Moderate Buy" and a consensus price target of $272.42.

Guidewire Software Stock Performance

NYSE:GWRE traded up $0.26 during mid-day trading on Monday, hitting $260.97. 241,336 shares of the company's stock traded hands, compared to its average volume of 956,973. Guidewire Software has a 12 month low of $162.72 and a 12 month high of $272.60. The company has a current ratio of 2.77, a quick ratio of 3.23 and a debt-to-equity ratio of 0.46. The firm has a market capitalization of $21.97 billion, a price-to-earnings ratio of 326.31, a price-to-earnings-growth ratio of 18.38 and a beta of 1.22. The firm has a 50 day moving average of $221.56 and a two-hundred day moving average of $212.04.

Guidewire Software (NYSE:GWRE - Get Free Report) last issued its quarterly earnings results on Thursday, September 4th. The technology company reported $0.84 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.62 by $0.22. The firm had revenue of $356.57 million for the quarter, compared to analyst estimates of $337.82 million. Guidewire Software had a return on equity of 9.00% and a net margin of 5.81%.The company's quarterly revenue was up 22.3% compared to the same quarter last year. During the same period in the previous year, the company posted $0.62 earnings per share. Guidewire Software has set its FY 2026 guidance at EPS. Q1 2026 guidance at EPS. On average, equities analysts forecast that Guidewire Software will post 0.52 earnings per share for the current fiscal year.

Insider Activity

In other news, President John P. Mullen sold 3,000 shares of the firm's stock in a transaction dated Tuesday, July 1st. The shares were sold at an average price of $235.05, for a total value of $705,150.00. Following the transaction, the president owned 146,489 shares of the company's stock, valued at approximately $34,432,239.45. This trade represents a 2.01% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider James Winston King sold 2,482 shares of the firm's stock in a transaction dated Monday, July 14th. The shares were sold at an average price of $220.65, for a total transaction of $547,653.30. Following the completion of the transaction, the insider directly owned 37,441 shares in the company, valued at $8,261,356.65. This trade represents a 6.22% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 29,541 shares of company stock valued at $6,621,759. 0.48% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Guidewire Software

A number of institutional investors and hedge funds have recently added to or reduced their stakes in GWRE. ANB Bank increased its stake in shares of Guidewire Software by 3.5% in the 1st quarter. ANB Bank now owns 1,590 shares of the technology company's stock valued at $298,000 after acquiring an additional 54 shares during the last quarter. Brooklyn Investment Group increased its stake in shares of Guidewire Software by 38.3% in the 1st quarter. Brooklyn Investment Group now owns 224 shares of the technology company's stock valued at $42,000 after acquiring an additional 62 shares during the last quarter. MassMutual Private Wealth & Trust FSB increased its stake in shares of Guidewire Software by 40.0% in the 2nd quarter. MassMutual Private Wealth & Trust FSB now owns 238 shares of the technology company's stock valued at $56,000 after acquiring an additional 68 shares during the last quarter. Poinciana Advisors Group LLC increased its stake in shares of Guidewire Software by 5.9% in the 2nd quarter. Poinciana Advisors Group LLC now owns 1,247 shares of the technology company's stock valued at $294,000 after acquiring an additional 70 shares during the last quarter. Finally, Sequoia Financial Advisors LLC increased its stake in shares of Guidewire Software by 4.1% in the 2nd quarter. Sequoia Financial Advisors LLC now owns 1,835 shares of the technology company's stock valued at $432,000 after acquiring an additional 73 shares during the last quarter.

About Guidewire Software

Guidewire Software, Inc provides a platform for property and casualty (P&C) insurers worldwide. The company offers Guidewire InsuranceSuite Cloud, such as PolicyCenter Cloud, BillingCenter Cloud, and ClaimCenter Cloud applications. It also provides Guidewire InsuranceNow, a cloud-based platform that offers policy, billing, and claims management functionality to insurers; and Guidewire InsuranceSuite for Self-Managed.

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