Goosehead Insurance (NASDAQ:GSHD) Hits New 1-Year Low - Should You Sell?

Key Points

• Goosehead Insurance shares reached a new 52-week low of $77.33 amid mid-day trading, reflecting a decline from its previous close of $77.97.
• Multiple analysts have lowered their price targets for Goosehead Insurance, with the consensus target price now at $109.36, indicating a generally cautious outlook.
• Recently, insiders sold a total of 244,770 shares valued at over $21.5 million in the last ninety days, while holding 48.35% of the company's stock.

Goosehead Insurance (NASDAQ:GSHD - Get Free Report)'s stock price hit a new 52-week low on Monday . The stock traded as low as $77.38 and last traded at $77.33, with a volume of 3432 shares trading hands. The stock had previously closed at $77.97.

Wall Street Analyst Weigh In

Several brokerages have weighed in on GSHD. BMO Capital Markets dropped their price objective on Goosehead Insurance from $142.00 to $110.00 and set a "market perform" rating on the stock in a research note on Friday, July 25th. Cantor Fitzgerald upgraded Goosehead Insurance to a "strong-buy" rating in a research note on Wednesday, August 13th. Zacks Research upgraded Goosehead Insurance from a "strong sell" rating to a "hold" rating in a research note on Monday, August 25th. Keefe, Bruyette & Woods dropped their price objective on Goosehead Insurance from $130.00 to $120.00 and set an "outperform" rating on the stock in a research note on Thursday, July 24th. Finally, UBS Group dropped their price objective on Goosehead Insurance from $140.00 to $136.00 and set a "buy" rating on the stock in a research note on Monday, July 28th. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and an average price target of $109.36.

Goosehead Insurance Trading Up 1.8%

The stock has a market capitalization of $2.98 billion, a PE ratio of 70.26, a price-to-earnings-growth ratio of 6.67 and a beta of 1.34. The firm has a 50-day moving average price of $87.34 and a 200-day moving average price of $100.31. The company has a current ratio of 2.92, a quick ratio of 2.92 and a debt-to-equity ratio of 2.10.

Goosehead Insurance (NASDAQ:GSHD - Get Free Report) last announced its earnings results on Wednesday, July 23rd. The company reported $0.49 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.53 by ($0.04). Goosehead Insurance had a net margin of 8.76% and a negative return on equity of 59.49%. The business had revenue of $94.03 million for the quarter, compared to analysts' expectations of $94.18 million. During the same period in the prior year, the business earned $0.43 earnings per share. The company's revenue for the quarter was up 20.4% compared to the same quarter last year. Goosehead Insurance has set its FY 2025 guidance at EPS. As a group, equities analysts forecast that Goosehead Insurance will post 0.83 EPS for the current fiscal year.

Insider Activity

In related news, major shareholder Adrienne Kebodeaux sold 3,000 shares of Goosehead Insurance stock in a transaction dated Tuesday, August 19th. The stock was sold at an average price of $86.30, for a total value of $258,900.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, major shareholder & Robyn Jones Descendants Mark sold 600 shares of Goosehead Insurance stock in a transaction dated Friday, August 15th. The stock was sold at an average price of $87.01, for a total value of $52,206.00. Following the completion of the sale, the insider directly owned 132,349 shares of the company's stock, valued at approximately $11,515,686.49. This trade represents a 0.45% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders sold 244,770 shares of company stock valued at $21,568,721. 37.76% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Goosehead Insurance

Several large investors have recently added to or reduced their stakes in the company. Caxton Associates LLP purchased a new stake in Goosehead Insurance in the 2nd quarter worth about $2,140,000. Public Sector Pension Investment Board increased its holdings in Goosehead Insurance by 10.5% in the 2nd quarter. Public Sector Pension Investment Board now owns 85,443 shares of the company's stock worth $9,015,000 after acquiring an additional 8,109 shares during the last quarter. CANADA LIFE ASSURANCE Co increased its holdings in Goosehead Insurance by 5.8% in the 2nd quarter. CANADA LIFE ASSURANCE Co now owns 26,643 shares of the company's stock worth $2,812,000 after acquiring an additional 1,450 shares during the last quarter. Tower Research Capital LLC TRC grew its holdings in Goosehead Insurance by 114.6% during the 2nd quarter. Tower Research Capital LLC TRC now owns 2,054 shares of the company's stock valued at $217,000 after buying an additional 1,097 shares in the last quarter. Finally, Ewing Morris & Co. Investment Partners Ltd. grew its holdings in Goosehead Insurance by 18.4% during the 2nd quarter. Ewing Morris & Co. Investment Partners Ltd. now owns 64,396 shares of the company's stock valued at $6,794,000 after buying an additional 10,000 shares in 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.