Bamco Inc. NY Takes $1.11 Billion Position in Guidewire Software, Inc. $GWRE

Key Points

• Bamco Inc. NY acquired 8.99 million Guidewire Software shares worth approximately $1.11 billion, making up 1.7% of its portfolio and representing a 10.8% ownership stake in GWRE.
• Institutional interest increased, with Linonia Partnership and Route One Investment also establishing sizable new positions, while other funds expanded their holdings.
• Analysts maintain a broadly positive outlook with a consensus “Moderate Buy” rating and a $221.64 target price, while Guidewire’s latest quarter beat estimates and delivered 26.9% year-over-year revenue growth.

Bamco Inc. NY purchased a new position in shares of 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 and Exchange Commission. The fund purchased 8,994,456 shares of the technology company's stock, valued at approximately $1,106,768,000. Guidewire Software makes up approximately 1.7% of Bamco Inc. NY's portfolio, making the stock its 8th biggest position. Bamco Inc. NY owned 10.80% of Guidewire Software at the end of the most recent quarter.

Other institutional investors and hedge funds have also modified their holdings of the company. Linonia Partnership LP purchased a new stake in Guidewire Software during the second quarter worth $853,165,000. Route One Investment Company L.P. purchased a new stake in shares of Guidewire Software in the 2nd quarter worth about $227,564,000. Geode Capital Management LLC boosted its position in shares of Guidewire Software by 8.9% in the 4th quarter. Geode Capital Management LLC now owns 1,778,201 shares of the technology company's stock worth $357,504,000 after buying an additional 145,924 shares in the last quarter. Stockbridge Partners LLC grew its stake in Guidewire Software by 39.0% in the 4th quarter. Stockbridge Partners LLC now owns 1,445,206 shares of the technology company's stock valued at $290,501,000 after acquiring an additional 405,850 shares during the last quarter. Finally, AQR Capital Management LLC grew its stake in Guidewire Software by 3.6% in the 4th quarter. AQR Capital Management LLC now owns 1,316,817 shares of the technology company's stock valued at $264,693,000 after acquiring an additional 45,289 shares during the last quarter.

Wall Street Analysts Forecast Growth

Several analysts have recently commented on GWRE shares. Wells Fargo & Company lowered their price target on shares of Guidewire Software from $210.00 to $190.00 and set an "overweight" rating on the stock in a research report on Friday, June 5th. DA Davidson dropped their price target on Guidewire Software from $246.00 to $222.00 and set a "buy" rating for the company in a research report on Monday, June 8th. Zacks Research cut Guidewire Software from a "strong-buy" rating to a "hold" rating in a report on Monday, May 25th. Stifel Nicolaus reduced their price objective on Guidewire Software from $225.00 to $200.00 and set a "buy" rating on the stock in a research report on Friday, June 5th. Finally, The Goldman Sachs Group reduced their price objective on Guidewire Software from $255.00 to $225.00 and set a "buy" rating on the stock in a research report on Friday, June 5th. One research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Guidewire Software has a consensus rating of "Moderate Buy" and a consensus target price of $221.64.

Insider Activity at Guidewire Software

In related news, insider James Winston King sold 1,684 shares of the firm's stock in a transaction that occurred on Thursday, July 9th. The shares were sold at an average price of $130.64, for a total value of $219,997.76. Following the sale, the insider directly owned 30,018 shares of the company's stock, valued at approximately $3,921,551.52. This trade represents a 5.31% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, President John P. Mullen sold 14,400 shares of the business'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 transaction of $2,664,000.00. Following the completion of the sale, the president owned 116,715 shares of the company's stock, valued at approximately $21,592,275. The trade was a 10.98% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 44,593 shares of company stock worth $6,631,278. 0.46% of the stock is owned by insiders.

Guidewire Software Stock Up 1.4%

Shares of NYSE GWRE opened at $190.98 on Thursday. The firm has a market cap of $15.90 billion, a P/E ratio of 103.23 and a beta of 0.92. The company has a debt-to-equity ratio of 0.51, a quick ratio of 2.44 and a current ratio of 2.44. Guidewire Software, Inc. has a 1 year low of $102.30 and a 1 year high of $272.60. The firm's 50 day moving average price is $149.06 and its 200 day moving average price is $143.19.

Guidewire Software (NYSE:GWRE - Get Free Report) last issued its quarterly earnings results on Thursday, June 4th. The technology company reported $0.82 earnings per share for the quarter, topping analysts' consensus estimates of $0.74 by $0.08. Guidewire Software had a return on equity of 12.62% and a net margin of 11.25%.The company had revenue of $372.54 million for the quarter, compared to analyst estimates of $355.92 million. During the same quarter in the prior year, the company posted $0.88 EPS. The business's revenue for the quarter was up 26.9% compared to the same quarter last year. As a group, sell-side analysts anticipate that Guidewire Software, Inc. will post 1.83 earnings per share for the current year.

Guidewire Software Company Profile

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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