Goosehead Insurance (NASDAQ:GSHD) Shares Gap Down Following Insider Selling

Key Points

• Insider selling drove a premarket gap down: shares opened at $44.87 after closing at $47.22 when major shareholder Robyn Jones Descendants Mark sold 5,307 shares for about $255,107, leaving them with 7,214,193 shares (a 0.07% reduction).
• Recent quarter showed an EPS beat of $0.37 versus $0.20 expected but revenue missed at $79.48M versus $105.16M, with a 7.94% net margin and a negative return on equity of 20.96%.
• Analyst views are mixed—seven Buys, five Holds and two Sells—with a consensus rating of "Hold" and a consensus target price of $67.73, while individual targets range from about $58 up to $80.

Goosehead Insurance (NASDAQ:GSHD - Get Free Report)'s stock price gapped down prior to trading on Friday following insider selling activity. The stock had previously closed at $47.22, but opened at $44.87. Goosehead Insurance shares last traded at $45.01, with a volume of 10,660 shares changing hands.

Specifically, major shareholder & Robyn Jones Descendants Mark sold 5,307 shares of the business's stock in a transaction that occurred on Wednesday, April 29th. The shares were sold at an average price of $48.07, for a total value of $255,107.49. Following the completion of the transaction, the insider owned 7,214,193 shares of the company's stock, valued at $346,786,257.51. The trade was a 0.07% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on the stock. Keefe, Bruyette & Woods boosted their price objective on shares of Goosehead Insurance from $75.00 to $80.00 and gave the stock an "outperform" rating in a research note on Thursday, April 23rd. Cantor Fitzgerald reduced their price objective on shares of Goosehead Insurance from $84.00 to $67.00 and set an "overweight" rating for the company in a research note on Thursday, April 9th. Weiss Ratings downgraded shares of Goosehead Insurance from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Monday, April 20th. Truist Financial reduced their price objective on shares of Goosehead Insurance from $72.00 to $58.00 and set a "hold" rating for the company in a research note on Wednesday, February 18th. Finally, JPMorgan Chase & Co. reduced their price objective on shares of Goosehead Insurance from $68.00 to $58.00 and set a "neutral" rating for the company in a research note on Thursday, April 9th. Seven analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of "Hold" and a consensus target price of $67.73.

Goosehead Insurance Price Performance

The company's fifty day simple moving average is $45.57 and its 200-day simple moving average is $60.65. The firm has a market capitalization of $1.65 billion, a PE ratio of 39.38, a price-to-earnings-growth ratio of 1.73 and a beta of 1.69.

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

Hedge Funds Weigh In On Goosehead Insurance

Institutional investors and hedge funds have recently bought and sold shares of the company. EverSource Wealth Advisors LLC grew its holdings in Goosehead Insurance by 480.4% in the second quarter. EverSource Wealth Advisors LLC now owns 325 shares of the company's stock worth $34,000 after purchasing an additional 269 shares during the last quarter. Kestra Advisory Services LLC purchased a new position in Goosehead Insurance in the fourth quarter worth $41,000. Northwestern Mutual Wealth Management Co. grew its holdings in Goosehead Insurance by 802.0% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 442 shares of the company's stock worth $47,000 after purchasing an additional 393 shares during the last quarter. Fifth Third Bancorp grew its holdings in Goosehead Insurance by 71.4% in the third quarter. Fifth Third Bancorp now owns 682 shares of the company's stock worth $51,000 after purchasing an additional 284 shares during the last quarter. Finally, Quadrant Capital Group LLC grew its holdings in Goosehead Insurance by 614.3% in the fourth quarter. Quadrant Capital Group LLC now owns 1,000 shares of the company's stock worth $74,000 after purchasing an additional 860 shares during 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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