Capital World Investors Takes Position in Guidewire Software, Inc. $GWRE

Key Points

• Capital World Investors disclosed a new stake in Guidewire Software, buying 1,006,940 shares worth about $202.4 million in the fourth quarter. The position represented roughly 1.18% of the company.
• Analysts remain generally positive on GWRE, with 11 Buy ratings and 3 Hold ratings, though several firms cut their price targets. The consensus rating is Moderate Buy with an average price target of $229.
• Guidewire reported quarterly results that beat expectations, posting $0.82 EPS versus the $0.74 estimate and revenue of $372.54 million, up 26.9% year over year. Despite the beat, the stock was trading down and insiders had also been selling shares recently.

Capital World Investors bought a new stake in Guidewire Software, Inc. (NYSE:GWRE - Free Report) in the fourth quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor bought 1,006,940 shares of the technology company's stock, valued at approximately $202,405,000. Capital World Investors owned about 1.18% of Guidewire Software as of its most recent SEC filing.

Other hedge funds have also modified their holdings of the company. Advisors Asset Management Inc. acquired a new stake in shares of Guidewire Software in the first quarter valued at about $25,000. Measured Wealth Private Client Group LLC acquired a new stake in shares of Guidewire Software in the third quarter valued at about $29,000. Flagship Harbor Advisors LLC purchased a new stake in shares of Guidewire Software in the fourth quarter valued at about $36,000. Harbour Investments Inc. grew its holdings in shares of Guidewire Software by 83.0% in the fourth quarter. Harbour Investments Inc. now owns 247 shares of the technology company's stock valued at $50,000 after purchasing an additional 112 shares during the period. Finally, Clearstead Advisors LLC grew its holdings in shares of Guidewire Software by 82.4% in the third quarter. Clearstead Advisors LLC now owns 270 shares of the technology company's stock valued at $62,000 after purchasing an additional 122 shares during the period.

Analyst Upgrades and Downgrades

GWRE has been the subject of a number of analyst reports. The Goldman Sachs Group dropped their price objective on shares of Guidewire Software from $255.00 to $225.00 and set a "buy" rating for the company in a report on Friday. Oppenheimer dropped their price objective on shares of Guidewire Software from $250.00 to $180.00 and set an "outperform" rating for the company in a report on Monday, May 18th. Wells Fargo & Company dropped their price objective on shares of Guidewire Software from $210.00 to $190.00 and set an "overweight" rating for the company in a report on Friday. Weiss Ratings reissued a "hold (c)" rating on shares of Guidewire Software in a report on Wednesday, June 3rd. Finally, DA Davidson dropped their price objective on shares of Guidewire Software from $246.00 to $222.00 and set a "buy" rating for the company in a report on Monday. Eleven analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat.com, Guidewire Software has a consensus rating of "Moderate Buy" and a consensus price target of $229.00.

Insider Activity

In other news, CEO Michael George Rosenbaum sold 4,737 shares of the firm's stock in a transaction that occurred on Tuesday, March 17th. The shares were sold at an average price of $163.86, for a total value of $776,204.82. Following the completion of the transaction, the chief executive officer owned 221,206 shares of the company's stock, valued at approximately $36,246,815.16. This trade represents a 2.10% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CFO Jeffrey Elliott Cooper sold 4,757 shares of the firm's stock in a transaction that occurred on Friday, March 13th. The shares were sold at an average price of $158.72, for a total transaction of $755,031.04. Following the completion of the transaction, the chief financial officer directly owned 67,996 shares of the company's stock, valued at approximately $10,792,325.12. The trade was a 6.54% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 33,679 shares of company stock valued at $5,178,014. 0.46% of the stock is currently owned by company insiders.

Guidewire Software Trading Down 6.5%

NYSE GWRE opened at $127.24 on Tuesday. The firm has a 50 day simple moving average of $139.59 and a 200-day simple moving average of $159.91. The company has a debt-to-equity ratio of 0.51, a quick ratio of 2.93 and a current ratio of 2.44. Guidewire Software, Inc. has a one year low of $115.57 and a one year high of $272.60. The firm has a market cap of $10.77 billion, a price-to-earnings ratio of 68.78 and a beta of 0.93.

Guidewire Software (NYSE:GWRE - Get Free Report) last posted its quarterly earnings data on Thursday, June 4th. The technology company reported $0.82 EPS for the quarter, beating the consensus estimate of $0.74 by $0.08. Guidewire Software had a net margin of 11.25% and a return on equity of 12.62%. The business had revenue of $372.54 million during the quarter, compared to analyst estimates of $355.92 million. During the same quarter last year, the firm posted $0.88 earnings per share. The business's revenue for the quarter was up 26.9% compared to the same quarter last year. Equities research analysts anticipate that Guidewire Software, Inc. will post 1.84 EPS for the current fiscal 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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