Hsbc Holdings PLC Sells 20,112 Shares of Guidewire Software, Inc. $GWRE

Key Points

• HSBC Holdings PLC cut its stake in Guidewire Software by 73.5% in the fourth quarter, selling 20,112 shares and leaving it with 7,237 shares worth about $1.46 million.
• Guidewire reported strong quarterly results, posting $0.82 EPS versus the $0.74 consensus and revenue of $372.54 million, up 26.9% year over year.
• Analyst sentiment remains constructive despite lowered targets: the stock has a Moderate Buy consensus with 10 Buy ratings and a average price target of $221.36, while the shares recently traded at $136.45.

Hsbc Holdings PLC trimmed its position in Guidewire Software, Inc. (NYSE:GWRE - Free Report) by 73.5% during the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 7,237 shares of the technology company's stock after selling 20,112 shares during the quarter. Hsbc Holdings PLC's holdings in Guidewire Software were worth $1,460,000 at the end of the most recent reporting period.

Several other large investors have also recently added to or reduced their stakes in the company. Advisors Asset Management Inc. bought a new position in shares of Guidewire Software during the first quarter worth approximately $25,000. Amundi boosted its stake in shares of Guidewire Software by 703.0% in the second quarter. Amundi now owns 36,093 shares of the technology company's stock valued at $8,220,000 after buying an additional 31,598 shares during the period. Jump Financial LLC bought a new stake in shares of Guidewire Software in the second quarter valued at approximately $305,000. Bank of Nova Scotia grew its position in Guidewire Software by 30.9% during the second quarter. Bank of Nova Scotia now owns 2,024 shares of the technology company's stock worth $477,000 after buying an additional 478 shares in the last quarter. Finally, NewEdge Advisors LLC grew its position in Guidewire Software by 30.6% during the second quarter. NewEdge Advisors LLC now owns 4,911 shares of the technology company's stock worth $1,156,000 after buying an additional 1,152 shares in the last quarter.

Guidewire Software Price Performance

Shares of GWRE traded up $1.40 during midday trading on Friday, hitting $136.45. The company's stock had a trading volume of 1,136,677 shares, compared to its average volume of 1,746,988. The company has a quick ratio of 2.44, a current ratio of 2.44 and a debt-to-equity ratio of 0.51. Guidewire Software, Inc. has a one year low of $102.30 and a one year high of $272.60. The stock has a market capitalization of $11.36 billion, a price-to-earnings ratio of 73.76 and a beta of 0.95. The company's fifty day simple moving average is $131.21 and its two-hundred day simple moving average is $145.94.

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 for the quarter, topping the consensus estimate of $0.74 by $0.08. Guidewire Software had a return on equity of 12.62% and a net margin of 11.25%.The business had revenue of $372.54 million during the quarter, compared to the consensus estimate of $355.92 million. During the same period in the prior year, the company earned $0.88 EPS. Guidewire Software's revenue for the quarter was up 26.9% on a year-over-year basis. As a group, equities analysts expect that Guidewire Software, Inc. will post 1.83 earnings per share for the current fiscal year.

Analysts Set New Price Targets

Several brokerages have weighed in on GWRE. The Goldman Sachs Group dropped their price objective on Guidewire Software from $255.00 to $225.00 and set a "buy" rating for the company in a report on Friday, June 5th. Royal Bank Of Canada reduced their target price on Guidewire Software from $250.00 to $215.00 and set an "outperform" rating on the stock in a report on Friday, June 5th. Oppenheimer decreased their price target on Guidewire Software from $250.00 to $180.00 and set an "outperform" rating on the stock in a research report on Monday, May 18th. Citizens Jmp dropped their price target on 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, BTIG Research reaffirmed a "buy" rating and set a $175.00 price objective on shares of Guidewire Software in a research report on Thursday, July 2nd. Ten investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat, Guidewire Software presently has an average rating of "Moderate Buy" and a consensus price target of $221.36.

Insider Activity at Guidewire Software

In related news, CFO Jeffrey Elliott Cooper sold 2,594 shares of the stock in a transaction that occurred on Tuesday, June 16th. The shares were sold at an average price of $118.74, for a total value of $308,011.56. Following the completion of the transaction, the chief financial officer owned 63,467 shares of the company's stock, valued at $7,536,071.58. This represents a 3.93% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider James Winston King sold 1,684 shares of the business's stock in a transaction on 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 position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 31,393 shares of company stock valued at $3,936,918 in the last quarter. 0.46% of the stock is owned by company insiders.

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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