Goosehead Insurance (NASDAQ:GSHD) Sets New 12-Month Low - Should You Sell?

Key Points

• Goosehead Insurance hit a new 52-week low, trading as low as $39.53 after previously closing at $40.16, reflecting continued pressure on the stock.
• Analyst sentiment is mixed but cautious: Goosehead now has an average Hold rating and a consensus price target of $67.73, with several firms cutting targets and Weiss Ratings downgrading it to a sell.
• The company’s latest earnings beat EPS expectations at $0.37 per share, but revenue came in below estimates at $79.48 million; meanwhile, insiders have been net sellers and some institutions have increased their stakes.

Goosehead Insurance (NASDAQ:GSHD - Get Free Report) reached a new 52-week low on Tuesday . The stock traded as low as $39.53 and last traded at $40.18, with a volume of 20959 shares trading hands. The stock had previously closed at $40.16.

Analysts Set New Price Targets

GSHD has been the subject of a number of research reports. UBS Group raised their price objective on Goosehead Insurance from $81.00 to $85.00 and gave the stock a "buy" rating in a research report on Monday, April 27th. BMO Capital Markets cut their target price on Goosehead Insurance from $79.00 to $55.00 and set a "market perform" rating for the company in a research note on Wednesday, February 18th. Cantor Fitzgerald decreased their price target on shares of Goosehead Insurance from $84.00 to $67.00 and set an "overweight" rating on the stock in a research note on Thursday, April 9th. JPMorgan Chase & Co. decreased their target price on shares of Goosehead Insurance from $68.00 to $58.00 and set a "neutral" rating on the stock in a research report on Thursday, April 9th. Finally, Weiss Ratings lowered shares of Goosehead Insurance from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Monday, April 20th. Seven analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, Goosehead Insurance presently has an average rating of "Hold" and a consensus target price of $67.73.

Goosehead Insurance Stock Up 1.1%

The stock has a fifty day simple moving average of $44.80 and a 200-day simple moving average of $59.66. The company has a market capitalization of $1.45 billion, a P/E ratio of 35.60, a PEG ratio of 1.50 and a beta of 1.62.

Goosehead Insurance (NASDAQ:GSHD - Get Free Report) last posted its earnings results on Thursday, April 23rd. The company reported $0.37 earnings per share for the quarter, topping the consensus estimate of $0.20 by $0.17. The business had revenue of $79.48 million for the quarter, compared to analyst estimates of $105.16 million. Goosehead Insurance had a net margin of 7.94% and a negative return on equity of 20.96%. The firm's quarterly revenue was up 23.1% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.26 EPS. Analysts predict that Goosehead Insurance will post 1.4 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, major shareholder & Robyn Jones Descendants Mark sold 5,090 shares of the firm's stock in a transaction on Friday, May 1st. The stock was sold at an average price of $45.32, for a total transaction of $230,678.80. Following the completion of the sale, the insider directly owned 7,203,796 shares of the company's stock, valued at $326,476,034.72. This trade represents a 0.07% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Louis Goldberg acquired 5,575 shares of the business's stock in a transaction on Friday, February 20th. The stock was acquired at an average price of $44.85 per share, with a total value of $250,038.75. Following the transaction, the director owned 5,575 shares in the company, valued at approximately $250,038.75. The trade was a ∞ increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last 90 days, insiders have sold 10,576 shares of company stock worth $494,568. 38.07% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Goosehead Insurance

A number of hedge funds have recently added to or reduced their stakes in the stock. Future Fund LLC raised its stake in shares of Goosehead Insurance by 63.5% in the first quarter. Future Fund LLC now owns 32,673 shares of the company's stock worth $1,394,000 after acquiring an additional 12,687 shares during the last quarter. Principal Financial Group Inc. grew its stake in shares of Goosehead Insurance by 23.2% during the first quarter. Principal Financial Group Inc. now owns 219,745 shares of the company's stock valued at $9,374,000 after purchasing an additional 41,334 shares during the last quarter. Fifth Third Bancorp increased its holdings in shares of Goosehead Insurance by 1,294.1% in the first quarter. Fifth Third Bancorp now owns 7,793 shares of the company's stock valued at $332,000 after purchasing an additional 7,234 shares in the last quarter. Janney Montgomery Scott LLC raised its position in Goosehead Insurance by 40.3% in the 1st quarter. Janney Montgomery Scott LLC now owns 8,972 shares of the company's stock worth $383,000 after purchasing an additional 2,576 shares during the last quarter. Finally, Wasatch Advisors LP lifted its holdings in Goosehead Insurance by 32.3% during the 1st quarter. Wasatch Advisors LP now owns 2,292,227 shares of the company's stock worth $97,786,000 after buying an additional 559,087 shares in the last quarter.

Goosehead Insurance Company Profile

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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