American Capital Management Inc. Takes Position in Guidewire Software, Inc. $GWRE

Key Points

• American Capital Management initiated a position in Guidewire Software during the second quarter, purchasing 328,983 shares worth approximately $40.5 million. The stake represented about 0.4% of Guidewire and 1.8% of the fund’s portfolio.
• Analysts maintain a generally positive outlook, with one Strong Buy, 12 Buy, and three Hold ratings. Guidewire has an average “Moderate Buy” rating and a consensus price target of $221.64.
• Guidewire exceeded quarterly expectations, reporting $0.82 in EPS versus $0.74 expected and $372.5 million in revenue versus $355.9 million expected; revenue increased 26.9% year over year. Insiders have sold 44,593 shares worth $6.6 million over the past 90 days, primarily through pre-arranged trading plans.

American Capital Management Inc. bought a new position in Guidewire Software, Inc. (NYSE:GWRE - Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund bought 328,983 shares of the technology company's stock, valued at approximately $40,481,000. Guidewire Software makes up about 1.8% of American Capital Management Inc.'s holdings, making the stock its 23rd biggest holding. American Capital Management Inc. owned approximately 0.40% of Guidewire Software at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also recently modified their holdings of GWRE. Advisors Asset Management Inc. bought a new stake in shares of Guidewire Software in the first quarter worth about $25,000. Fiduciary Financial Advisors purchased a new stake in shares of Guidewire Software in the second quarter worth about $29,000. Measured Wealth Private Client Group LLC bought a new position in Guidewire Software during the third quarter valued at approximately $29,000. Silvant Capital Management LLC bought a new position in Guidewire Software during the second quarter valued at approximately $33,000. Finally, Leonteq Securities AG purchased a new position in Guidewire Software during the 1st quarter valued at approximately $36,000.

Analysts Set New Price Targets

GWRE has been the subject of a number of recent research reports. Stifel Nicolaus cut their target price on shares of Guidewire Software from $225.00 to $200.00 and set a "buy" rating for the company in a report on Friday, June 5th. 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 research note on Friday, June 5th. Guggenheim assumed coverage on shares of Guidewire Software in a research report on Thursday, July 23rd. They set a "buy" rating and a $180.00 price objective for the company. JPMorgan Chase & Co. dropped their price objective on shares of Guidewire Software from $300.00 to $258.00 and set an "overweight" rating for the company in a research note on Tuesday, July 14th. Finally, Weiss Ratings restated a "hold (c)" rating on shares of Guidewire Software in a report on Wednesday, June 3rd. One equities research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat, Guidewire Software currently has an average rating of "Moderate Buy" and an average target price of $221.64.

Insider Transactions at Guidewire Software

In related news, insider James Winston King sold 1,684 shares of the firm's stock in a transaction dated Thursday, July 9th. The shares were sold at an average price of $130.64, for a total value of $219,997.76. Following the transaction, the insider owned 30,018 shares of the company's stock, valued at $3,921,551.52. This trade represents a 5.31% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Michael George Rosenbaum sold 1,200 shares of the firm's stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $187.82, for a total transaction of $225,384.00. Following the completion of the transaction, the chief executive officer directly owned 187,776 shares in the company, valued at $35,268,088.32. This represents a 0.64% 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 44,593 shares of company stock worth $6,631,278. 0.46% of the stock is currently owned by insiders.

Guidewire Software Stock Performance

Shares of NYSE:GWRE opened at $190.98 on Thursday. The company has a current ratio of 2.44, a quick ratio of 2.44 and a debt-to-equity ratio of 0.51. Guidewire Software, Inc. has a 12 month low of $102.30 and a 12 month high of $272.60. The company has a market capitalization of $15.90 billion, a price-to-earnings ratio of 103.23 and a beta of 0.92. The firm's 50-day moving average is $149.06 and its 200 day moving average is $143.19.

Guidewire Software (NYSE:GWRE - Get Free Report) last announced its quarterly earnings data on Thursday, June 4th. The technology company reported $0.82 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.74 by $0.08. The business had revenue of $372.54 million during the quarter, compared to the consensus estimate of $355.92 million. Guidewire Software had a net margin of 11.25% and a return on equity of 12.62%. The firm's quarterly revenue was up 26.9% compared to the same quarter last year. During the same quarter last year, the firm earned $0.88 earnings per share. Research analysts predict that Guidewire Software, Inc. will post 1.83 EPS for the current year.

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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