Guidewire Software (NYSE:GWRE) Releases Quarterly Earnings Results, Misses Expectations By $0.38 EPS

Key Points

• Guidewire Software reported quarterly EPS of $0.55, missing the consensus estimate of $0.93 by $0.38. The company posted an 11.25% net margin and 12.62% return on equity.
• Shares rose 4.9% to $202.22 following the earnings release, giving the company a market capitalization of approximately $16.84 billion.
• Analyst sentiment remains favorable, with 13 Buy ratings and three Holds, producing a “Moderate Buy” consensus and an average price target of $223.93.

Guidewire Software (NYSE:GWRE - Get Free Report) released its quarterly earnings data on Thursday. The technology company reported $0.55 earnings per share for the quarter, missing the consensus estimate of $0.93 by ($0.38), Zacks reports. Guidewire Software had a net margin of 11.25% and a return on equity of 12.62%.

Guidewire Software Trading Up 4.9%

Guidewire Software stock traded up $9.46 during trading hours on Thursday, hitting $202.22. The stock had a trading volume of 1,933,571 shares, compared to its average volume of 1,567,772. The company has a quick ratio of 2.44, a current ratio of 2.44 and a debt-to-equity ratio of 0.51. The stock has a market cap of $16.84 billion, a price-to-earnings ratio of 109.31 and a beta of 0.96. Guidewire Software has a one year low of $102.30 and a one year high of $272.60. The business's 50 day simple moving average is $158.37 and its 200-day simple moving average is $145.73.

Insider Transactions at Guidewire Software

In other news, insider James King sold 1,684 shares of the business's stock in a transaction dated Thursday, July 9th. The stock was sold at an average price of $130.64, for a total transaction of $219,997.76. Following the sale, the insider directly owned 30,018 shares in the company, valued at approximately $3,921,551.52. The trade was a 5.31% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, President John Mullen sold 14,400 shares of the company's stock in a transaction that occurred on Wednesday, August 19th. The shares were sold at an average price of $185.00, for a total value of $2,664,000.00. Following the completion of the transaction, the president directly owned 116,715 shares of the company's stock, valued at $21,592,275. This represents a 10.98% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 47,093 shares of company stock valued at $7,185,902. Company insiders own 0.46% of the company's stock.

Hedge Funds Weigh In On Guidewire Software

Several large investors have recently modified their holdings of the business. Alliancebernstein L.P. lifted its holdings in Guidewire Software by 405.1% during the 2nd quarter. Alliancebernstein L.P. now owns 538,303 shares of the technology company's stock worth $126,743,000 after buying an additional 431,725 shares during the period. Stockbridge Partners LLC lifted its stake in shares of Guidewire Software by 39.0% in the fourth quarter. Stockbridge Partners LLC now owns 1,445,206 shares of the technology company's stock worth $290,501,000 after acquiring an additional 405,850 shares during the period. Qube Research & Technologies Ltd lifted its stake in shares of Guidewire Software by 34.4% in the third quarter. Qube Research & Technologies Ltd now owns 982,747 shares of the technology company's stock worth $225,894,000 after acquiring an additional 251,280 shares during the period. AQR Capital Management LLC boosted its holdings in Guidewire Software by 18.9% in the third quarter. AQR Capital Management LLC now owns 1,271,528 shares of the technology company's stock valued at $292,146,000 after acquiring an additional 202,064 shares during the last quarter. Finally, Freestone Grove Partners LP boosted its holdings in Guidewire Software by 291.9% in the fourth quarter. Freestone Grove Partners LP now owns 250,570 shares of the technology company's stock valued at $50,367,000 after acquiring an additional 186,633 shares during the last quarter.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on the stock. Piper Sandler assumed coverage on shares of Guidewire Software in a report on Monday, August 10th. They issued an "overweight" rating and a $210.00 target price for the company. Royal Bank Of Canada decreased their price target on shares of Guidewire Software from $250.00 to $215.00 and set an "outperform" rating on the stock in a report on Friday, June 5th. Zacks Research cut shares of Guidewire Software from a "strong-buy" rating to a "hold" rating in a research report on Monday, May 25th. Citizens Jmp dropped their price objective on shares of Guidewire Software from $300.00 to $220.00 and set a "market outperform" rating for the company in a research note on Friday, June 5th. Finally, Oppenheimer raised their target price on shares of Guidewire Software from $180.00 to $200.00 and gave the company an "outperform" rating in a research report on Monday, August 17th. Thirteen equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, Guidewire Software currently has an average rating of "Moderate Buy" and a consensus price target of $223.93.

About Guidewire Software

Guidewire Software, Inc develops software products and cloud services for property and casualty (P&C) insurance carriers. Headquartered in San Mateo, California, the company's offerings are designed to help insurers manage the core functions of their business—policy administration, billing and claims—while supporting digital engagement, analytics and operational modernization.

Guidewire's core product portfolio is commonly known as the InsuranceSuite, which includes PolicyCenter for policy administration, BillingCenter for billing and receivables, and ClaimCenter for claims management.

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