Goosehead Insurance (NASDAQ:GSHD) Reaches New 52-Week Low - Here's Why

Key Points

• Goosehead Insurance's stock price hit a new 52-week low of $65.49, showing a decline from its previous close of $67.35 amidst heightened trading activity.
• Recent analyst ratings have resulted in a mix of outlooks, with Zacks Research downgrading the stock to a "strong sell" while Cantor Fitzgerald upgraded it to "strong buy," reflecting differing opinions on its future performance.
• The company reported a Q2 earnings miss, with EPS at $0.49 compared to analyst expectations of $0.53, but experienced a revenue increase of 20.4% compared to the same quarter last year.

Goosehead Insurance (NASDAQ:GSHD - Get Free Report)'s stock price reached a new 52-week low during mid-day trading on Thursday . The stock traded as low as $65.92 and last traded at $65.49, with a volume of 6376 shares traded. The stock had previously closed at $67.35.

Wall Street Analysts Forecast Growth

GSHD has been the subject of several research reports. Zacks Research downgraded Goosehead Insurance from a "hold" rating to a "strong sell" rating in a research note on Friday, October 10th. Cantor Fitzgerald upgraded Goosehead Insurance to a "strong-buy" rating in a research report on Wednesday, August 13th. Piper Sandler dropped their price objective on Goosehead Insurance from $92.00 to $79.00 and set a "neutral" rating for the company in a research report on Monday, October 6th. Weiss Ratings reiterated a "hold (c+)" rating on shares of Goosehead Insurance in a research report on Wednesday, October 8th. Finally, Keefe, Bruyette & Woods dropped their price objective on Goosehead Insurance from $130.00 to $120.00 and set an "outperform" rating for the company in a research report on Thursday, July 24th. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, six have issued a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $105.09.

Goosehead Insurance Trading Down 3.1%

The stock has a 50-day simple moving average of $79.82 and a 200-day simple moving average of $95.21. The company has a market capitalization of $2.45 billion, a price-to-earnings ratio of 57.75, a price-to-earnings-growth ratio of 13.57 and a beta of 1.27.

Goosehead Insurance (NASDAQ:GSHD - Get Free Report) last issued its quarterly earnings results on Wednesday, July 23rd. The company reported $0.49 earnings per share for the quarter, missing analysts' consensus estimates of $0.53 by ($0.04). The firm had revenue of $94.03 million during the quarter, compared to the consensus estimate of $94.18 million. Goosehead Insurance had a net margin of 8.76% and a negative return on equity of 59.49%. Goosehead Insurance's revenue was up 20.4% compared to the same quarter last year. During the same quarter last year, the firm posted $0.43 earnings per share. Goosehead Insurance has set its FY 2025 guidance at EPS. On average, research analysts forecast that Goosehead Insurance will post 0.83 EPS for the current year.

Insider Transactions at Goosehead Insurance

In other news, major shareholder & Robyn Jones Descendants Mark sold 60,000 shares of the stock in a transaction on Wednesday, August 13th. The stock was sold at an average price of $88.23, for a total value of $5,293,800.00. Following the completion of the transaction, the insider owned 132,349 shares of the company's stock, valued at approximately $11,677,152.27. This represents a 31.19% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, CFO Mark E. Jr. Jones purchased 1,149 shares of the firm's stock in a transaction dated Tuesday, July 29th. The stock was acquired at an average cost of $86.08 per share, with a total value of $98,905.92. Following the purchase, the chief financial officer owned 3,491 shares of the company's stock, valued at approximately $300,505.28. This represents a 49.06% increase in their position. The disclosure for this purchase can be found here. Over the last quarter, insiders sold 244,770 shares of company stock valued at $21,568,721. 48.35% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Goosehead Insurance

Hedge funds have recently bought and sold shares of the business. Wasatch Advisors LP raised its stake in shares of Goosehead Insurance by 12.6% during the 2nd quarter. Wasatch Advisors LP now owns 2,275,369 shares of the company's stock worth $240,074,000 after purchasing an additional 253,777 shares in the last quarter. State Street Corp increased its holdings in shares of Goosehead Insurance by 1.4% during the 2nd quarter. State Street Corp now owns 1,027,500 shares of the company's stock valued at $108,412,000 after acquiring an additional 14,311 shares during the last quarter. Geode Capital Management LLC increased its holdings in shares of Goosehead Insurance by 25.4% during the 2nd quarter. Geode Capital Management LLC now owns 705,284 shares of the company's stock valued at $74,422,000 after acquiring an additional 143,038 shares during the last quarter. Durable Capital Partners LP acquired a new position in shares of Goosehead Insurance during the 2nd quarter valued at about $71,832,000. Finally, Balyasny Asset Management L.P. increased its holdings in shares of Goosehead Insurance by 118.7% during the 2nd quarter. Balyasny Asset Management L.P. now owns 556,760 shares of the company's stock valued at $58,744,000 after acquiring an additional 302,130 shares during the last quarter.

About Goosehead Insurance

Goosehead Insurance, Inc operates as a holding company for Goosehead Financial, LLC that engages in the provision of personal lines insurance agency services in the United States. The company offers homeowner's, automotive, dwelling property, flood, wind, earthquake, excess liability or umbrella, motorcycle, recreational vehicle, general liability, property, and life insurance products and services.

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