Northwestern Mutual Wealth Management Co. Acquires 201,302 Shares of Guidewire Software, Inc. $GWRE

Key Points

• Northwestern Mutual Wealth Management Co. sharply increased its stake in Guidewire Software, buying 201,302 shares in the fourth quarter and bringing its total holding to 203,442 shares worth about $40.9 million.
• Guidewire Software reported a strong quarterly earnings beat, posting $1.17 EPS versus estimates of $0.77 and revenue of $359.1 million, up 24% year over year.
• Despite the solid results, analysts have trimmed some price targets; the stock was also up 5.3% on the day, while insiders sold shares and Wall Street still maintains a Moderate Buy consensus rating with an average target of $244.46.

Northwestern Mutual Wealth Management Co. boosted its holdings in Guidewire Software, Inc. (NYSE:GWRE - Free Report) by 9,406.6% during the 4th quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 203,442 shares of the technology company's stock after acquiring an additional 201,302 shares during the quarter. Northwestern Mutual Wealth Management Co. owned 0.24% of Guidewire Software worth $40,894,000 at the end of the most recent quarter.

Other large investors have also added to or reduced their stakes in the company. Advisors Asset Management Inc. bought a new position in Guidewire Software in the 1st quarter valued at about $25,000. Root Financial Partners LLC bought a new position in Guidewire Software in the 3rd quarter valued at about $29,000. Measured Wealth Private Client Group LLC bought a new position in Guidewire Software in the 3rd quarter valued at about $29,000. Cornerstone Planning Group LLC lifted its position in Guidewire Software by 620.0% in the 3rd quarter. Cornerstone Planning Group LLC now owns 144 shares of the technology company's stock valued at $34,000 after acquiring an additional 124 shares in the last quarter. Finally, Hazlett Burt & Watson Inc. bought a new position in Guidewire Software in the 3rd quarter valued at about $35,000.

Guidewire Software Trading Up 5.3%

NYSE:GWRE opened at $137.07 on Tuesday. The company has a debt-to-equity ratio of 0.45, a quick ratio of 2.93 and a current ratio of 2.93. The firm has a market cap of $11.60 billion, a price-to-earnings ratio of 62.30 and a beta of 0.91. Guidewire Software, Inc. has a 52 week low of $115.57 and a 52 week high of $272.60. The firm has a 50-day moving average price of $143.67 and a two-hundred day moving average price of $168.19.

Guidewire Software (NYSE:GWRE - Get Free Report) last posted its quarterly earnings data on Thursday, March 5th. The technology company reported $1.17 EPS for the quarter, beating the consensus estimate of $0.77 by $0.40. Guidewire Software had a net margin of 14.11% and a return on equity of 13.44%. The firm had revenue of $359.10 million during the quarter, compared to analyst estimates of $342.88 million. During the same quarter last year, the business posted $0.51 EPS. The company's revenue for the quarter was up 24.0% on a year-over-year basis. On average, equities analysts expect that Guidewire Software, Inc. will post 1.84 earnings per share for the current fiscal year.

Insider Transactions at Guidewire Software

In other news, CAO David Franklin Peterson sold 273 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 transaction of $44,733.78. Following the completion of the sale, the chief accounting officer owned 12,533 shares in the company, valued at $2,053,657.38. This trade represents a 2.13% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Jeffrey Elliott Cooper sold 1,935 shares of the firm's stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $163.86, for a total transaction of $317,069.10. Following the sale, the chief financial officer owned 66,061 shares of the company's stock, valued at approximately $10,824,755.46. The trade was a 2.85% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 32,479 shares of company stock worth $5,008,562 in the last quarter. Insiders own 0.46% of the company's stock.

Analysts Set New Price Targets

Several equities research analysts have commented on the stock. Oppenheimer decreased their price objective on shares of Guidewire Software from $250.00 to $180.00 and set an "outperform" rating for the company in a research note on Monday. Royal Bank Of Canada decreased their price objective on shares of Guidewire Software from $300.00 to $250.00 and set an "outperform" rating for the company in a research note on Friday, March 6th. DA Davidson reiterated a "buy" rating and issued a $246.00 price objective on shares of Guidewire Software in a research note on Tuesday, March 10th. Weiss Ratings reiterated a "hold (c)" rating on shares of Guidewire Software in a research note on Thursday, January 22nd. Finally, BTIG Research increased their price objective on shares of Guidewire Software from $175.00 to $200.00 and gave the company a "buy" rating in a research note on Friday, March 6th. One research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $244.46.

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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