M.D. Sass LLC Raises Holdings in Guidewire Software, Inc. $GWRE

Key Points

• M.D. Sass LLC increased its stake in Guidewire Software by 71.5% in the first quarter, adding 23,022 shares to bring its total to 55,208 shares worth about $8.26 million.
• Guidewire reported better-than-expected quarterly results, posting earnings of $0.82 per share on revenue of $372.54 million, with revenue up 26.9% year over year.
• Despite the strong earnings, the stock was down 2.0% on the day, while analysts maintained a generally positive view with a consensus rating of Moderate Buy and an average price target of $221.

M.D. Sass LLC boosted its holdings in shares of Guidewire Software, Inc. (NYSE:GWRE - Free Report) by 71.5% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 55,208 shares of the technology company's stock after acquiring an additional 23,022 shares during the quarter. Guidewire Software comprises 0.6% of M.D. Sass LLC's holdings, making the stock its 24th largest holding. M.D. Sass LLC owned approximately 0.07% of Guidewire Software worth $8,257,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in GWRE. Capital World Investors purchased a new position in shares of Guidewire Software during the 4th quarter worth $202,405,000. Principal Financial Group Inc. raised its holdings in Guidewire Software by 547.3% in the 1st quarter. Principal Financial Group Inc. now owns 1,180,334 shares of the technology company's stock valued at $176,537,000 after buying an additional 997,992 shares during the period. Alliancebernstein L.P. lifted its position in Guidewire Software by 405.1% in the second quarter. Alliancebernstein L.P. now owns 538,303 shares of the technology company's stock valued at $126,743,000 after buying an additional 431,725 shares during the last quarter. Stockbridge Partners LLC lifted its position in Guidewire Software by 39.0% in the fourth quarter. Stockbridge Partners LLC now owns 1,445,206 shares of the technology company's stock valued at $290,501,000 after buying an additional 405,850 shares during the last quarter. Finally, Assenagon Asset Management S.A. boosted its stake in Guidewire Software by 179.0% during the first quarter. Assenagon Asset Management S.A. now owns 628,759 shares of the technology company's stock worth $94,037,000 after buying an additional 403,370 shares during the period.

Guidewire Software Stock Down 2.0%

Shares of NYSE:GWRE opened at $131.33 on Friday. The firm has a market capitalization of $10.93 billion, a PE ratio of 70.99 and a beta of 0.95. Guidewire Software, Inc. has a 1 year low of $102.30 and a 1 year high of $272.60. The company has a debt-to-equity ratio of 0.51, a current ratio of 2.44 and a quick ratio of 2.44. The firm's 50-day moving average is $132.71 and its two-hundred day moving average is $141.71.

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. The business had revenue of $372.54 million during the quarter, compared to analyst estimates of $355.92 million. Guidewire Software had a net margin of 11.25% and a return on equity of 12.62%. The business's revenue for the quarter was up 26.9% compared to the same quarter last year. During the same quarter last year, the firm posted $0.88 earnings per share. Analysts predict that Guidewire Software, Inc. will post 1.83 EPS for the current year.

Insider Activity at Guidewire Software

In other news, CEO Michael George Rosenbaum sold 1,200 shares of the company's stock in a transaction on Monday, July 13th. The stock was sold at an average price of $138.47, for a total transaction of $166,164.00. Following the sale, the chief executive officer owned 194,976 shares of the company's stock, valued at approximately $26,998,326.72. This represents a 0.61% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO David Franklin Peterson sold 246 shares of the stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $118.74, for a total value of $29,210.04. Following the completion of the sale, the chief accounting officer owned 12,287 shares in the company, valued at approximately $1,458,958.38. The trade was a 1.96% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 30,193 shares of company stock worth $3,792,858 over the last 90 days. 0.46% of the stock is currently owned by corporate insiders.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on GWRE shares. Oppenheimer dropped their price target on shares of Guidewire Software from $250.00 to $180.00 and set an "outperform" rating for the company in a research report on Monday, May 18th. Royal Bank Of Canada decreased their price objective 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. DA Davidson dropped their target price on shares of Guidewire Software from $246.00 to $222.00 and set a "buy" rating for the company in a report on Monday, June 8th. Zacks Research downgraded shares of Guidewire Software from a "strong-buy" rating to a "hold" rating in a report on Monday, May 25th. Finally, The Goldman Sachs Group cut their target price 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. Twelve analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $221.00.

Guidewire Software 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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