Picton Mahoney Asset Management Has $8.75 Million Stake in Guidewire Software, Inc. $GWRE

Key Points

• Picton Mahoney Asset Management increased its stake in Guidewire by 304.6% in Q3 to 38,051 shares, worth about $8.746 million.
• Guidewire's board authorized a $500 million share repurchase plan (roughly 3.1% of outstanding shares), signaling the board may view the stock as undervalued.
• In Q3 Guidewire reported EPS of $0.66 (in line with estimates) and revenue of $332.64 million, which beat expectations and rose 26.5% year-over-year.

Picton Mahoney Asset Management grew its holdings in Guidewire Software, Inc. (NYSE:GWRE - Free Report) by 304.6% during the 3rd quarter, according to the company in its most recent disclosure with the SEC. The fund owned 38,051 shares of the technology company's stock after purchasing an additional 28,646 shares during the quarter. Picton Mahoney Asset Management's holdings in Guidewire Software were worth $8,746,000 as of its most recent filing with the SEC.

A number of other institutional investors have also made changes to their positions in the business. Victory Capital Management Inc. boosted its stake in Guidewire Software by 28.9% during the 3rd quarter. Victory Capital Management Inc. now owns 31,871 shares of the technology company's stock valued at $7,326,000 after purchasing an additional 7,150 shares during the period. Focus Partners Advisor Solutions LLC lifted its holdings in shares of Guidewire Software by 84.1% during the third quarter. Focus Partners Advisor Solutions LLC now owns 7,501 shares of the technology company's stock worth $1,653,000 after buying an additional 3,427 shares during the last quarter. Segall Bryant & Hamill LLC lifted its holdings in shares of Guidewire Software by 23.3% during the third quarter. Segall Bryant & Hamill LLC now owns 49,715 shares of the technology company's stock worth $11,427,000 after buying an additional 9,391 shares during the last quarter. American Century Companies Inc. boosted its position in shares of Guidewire Software by 3.4% in the third quarter. American Century Companies Inc. now owns 520,390 shares of the technology company's stock valued at $119,617,000 after acquiring an additional 17,104 shares during the period. Finally, Handelsbanken Fonder AB grew its stake in shares of Guidewire Software by 20.4% in the third quarter. Handelsbanken Fonder AB now owns 24,195 shares of the technology company's stock worth $5,561,000 after acquiring an additional 4,100 shares during the last quarter.

Guidewire Software Stock Up 1.0%

GWRE opened at $153.45 on Thursday. The firm's 50-day simple moving average is $156.32 and its 200-day simple moving average is $201.52. The company has a debt-to-equity ratio of 0.44, a quick ratio of 3.48 and a current ratio of 3.48. Guidewire Software, Inc. has a twelve month low of $120.37 and a twelve month high of $272.60. The firm has a market cap of $13.05 billion, a price-to-earnings ratio of 146.14, a PEG ratio of 9.79 and a beta of 1.06.

Guidewire Software (NYSE:GWRE - Get Free Report) last announced its quarterly earnings results on Wednesday, December 3rd. The technology company reported $0.66 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.66. The firm had revenue of $332.64 million during the quarter, compared to the consensus estimate of $316.62 million. Guidewire Software had a net margin of 7.23% and a return on equity of 10.15%. The firm's quarterly revenue was up 26.5% on a year-over-year basis. During the same period last year, the firm posted $0.43 EPS. Equities research analysts anticipate that Guidewire Software, Inc. will post 0.52 EPS for the current fiscal year.

Guidewire Software declared that its Board of Directors has initiated a share repurchase plan on Thursday, January 8th that allows the company to repurchase $500.00 million in outstanding shares. This repurchase authorization allows the technology company to purchase up to 3.1% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company's board believes its shares are undervalued.

Insider Activity at Guidewire Software

In related news, CEO Michael George Rosenbaum sold 1,200 shares of the firm's stock in a transaction that occurred on Monday, February 23rd. The shares were sold at an average price of $125.50, for a total value of $150,600.00. Following the completion of the sale, the chief executive officer owned 229,543 shares of the company's stock, valued at $28,807,646.50. This trade represents a 0.52% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CFO Jeffrey Elliott Cooper sold 216 shares of the business's stock in a transaction dated Tuesday, January 13th. The stock was sold at an average price of $180.87, for a total value of $39,067.92. Following the sale, the chief financial officer directly owned 72,753 shares of the company's stock, valued at $13,158,835.11. This represents a 0.30% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 42,760 shares of company stock valued at $7,978,508. Company insiders own 0.46% of the company's stock.

Analyst Upgrades and Downgrades

GWRE has been the subject of several research analyst reports. Oppenheimer cut their target price on shares of Guidewire Software from $300.00 to $250.00 and set an "outperform" rating for the company in a research note on Tuesday, February 24th. Wall Street Zen downgraded shares of Guidewire Software from a "buy" rating to a "hold" rating in a report on Friday, November 28th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Guidewire Software in a research report on Thursday, January 22nd. Citigroup increased their target price on shares of Guidewire Software from $242.00 to $245.00 and gave the company a "neutral" rating in a research note on Friday, December 5th. Finally, DA Davidson upgraded Guidewire Software from a "neutral" rating to a "buy" rating and boosted their price target for the company from $246.00 to $250.00 in a research note on Wednesday, December 17th. Eleven research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $255.92.

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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