Goosehead Insurance (NASDAQ:GSHD) Reaches New 12-Month Low After Analyst Downgrade

Key Points

• JPMorgan downgrade — JPMorgan cut its price target on Goosehead from $68 to $58 and gave a neutral rating, after which the stock hit a new 52-week low of $39.64 (last $40.17) amid heavier trading.
• Mixed analyst view — The consensus is a "Moderate Buy" (7 Buys, 6 Holds) with a $73 average target, but several firms have recently trimmed price targets, reflecting divergent views on the stock.
• Insider activity and results — Director Louis Goldberg bought 5,575 shares at $44.85 and insiders own 48.35% of shares; the company beat EPS expectations ($0.64 vs. $0.54) but missed revenue estimates and showed a negative return on equity.

Shares of Goosehead Insurance (NASDAQ:GSHD - Get Free Report) reached a new 52-week low during mid-day trading on Friday after JPMorgan Chase & Co. lowered their price target on the stock from $68.00 to $58.00. JPMorgan Chase & Co. currently has a neutral rating on the stock. Goosehead Insurance traded as low as $39.64 and last traded at $40.1650, with a volume of 83080 shares changing hands. The stock had previously closed at $42.25.

Other analysts have also recently issued reports about the stock. Citigroup reaffirmed an "outperform" rating on shares of Goosehead Insurance in a research report on Wednesday, February 18th. Royal Bank Of Canada assumed coverage on shares of Goosehead Insurance in a research report on Tuesday, March 17th. They set a "hold" rating and a $49.00 price target on the stock. UBS Group dropped their price target on shares of Goosehead Insurance from $90.00 to $81.00 and set a "buy" rating on the stock in a research note on Wednesday. Citizens Jmp dropped their price target on shares of Goosehead Insurance from $140.00 to $125.00 and set a "market outperform" rating on the stock in a research note on Wednesday, February 18th. Finally, Weiss Ratings restated a "hold (c)" rating on shares of Goosehead Insurance in a research note on Wednesday, January 28th. Seven analysts have rated the stock with a Buy rating and six have given a Hold rating to the company's stock. Based on data from MarketBeat.com, Goosehead Insurance currently has a consensus rating of "Moderate Buy" and a consensus target price of $73.00.

Insiders Place Their Bets

In other news, Director Louis Goldberg acquired 5,575 shares of the firm's stock in a transaction that occurred on Friday, February 20th. The stock was purchased at an average price of $44.85 per share, with a total value of $250,038.75. Following the purchase, the director owned 5,575 shares of the company's stock, valued at approximately $250,038.75. This trade represents a ∞ increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at the SEC website. Insiders own 48.35% of the company's stock.

Institutional Investors Weigh In On Goosehead Insurance

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in GSHD. EverSource Wealth Advisors LLC raised its holdings in Goosehead Insurance by 480.4% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 325 shares of the company's stock worth $34,000 after acquiring an additional 269 shares during the period. Kestra Advisory Services LLC bought a new position in Goosehead Insurance in the 4th quarter worth $41,000. Northwestern Mutual Wealth Management Co. raised its holdings in Goosehead Insurance by 802.0% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 442 shares of the company's stock worth $47,000 after acquiring an additional 393 shares during the period. Fifth Third Bancorp raised its holdings in Goosehead Insurance by 71.4% in the 3rd quarter. Fifth Third Bancorp now owns 682 shares of the company's stock worth $51,000 after acquiring an additional 284 shares during the period. Finally, Quadrant Capital Group LLC raised its holdings in Goosehead Insurance by 614.3% in the 4th quarter. Quadrant Capital Group LLC now owns 1,000 shares of the company's stock worth $74,000 after acquiring an additional 860 shares during the period.

Goosehead Insurance Trading Down 4.4%

The stock has a market cap of $1.48 billion, a P/E ratio of 38.63, a P/E/G ratio of 3.26 and a beta of 1.69. The firm's fifty day moving average is $48.61 and its 200 day moving average is $63.53.

Goosehead Insurance (NASDAQ:GSHD - Get Free Report) last announced its earnings results on Tuesday, February 17th. The company reported $0.64 EPS for the quarter, topping the consensus estimate of $0.54 by $0.10. The firm had revenue of $78.20 million for the quarter, compared to the consensus estimate of $99.67 million. Goosehead Insurance had a net margin of 7.62% and a negative return on equity of 21.31%. The business's quarterly revenue was up 12.1% on a year-over-year basis. During the same quarter last year, the firm posted $0.79 EPS. Research analysts forecast that Goosehead Insurance will post 0.83 earnings per share for the current fiscal year.

About Goosehead Insurance

Goosehead Insurance NASDAQ: GSHD is a technology-driven insurance agency that connects consumers with a broad range of personal and commercial insurance products through an extensive network of independent insurance advisors. The company specializes in homeowners, auto, flood, dwelling fire, umbrella, life, and commercial lines coverage, working with multiple national and regional carriers to offer tailored policies. By combining advanced quoting tools with local market expertise, Goosehead streamlines the insurance shopping process and helps clients find competitive coverage options.

Founded in 2003 and headquartered in Westlake, Texas, Goosehead has grown its footprint across more than 40 states in the U.S.

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