Goosehead Insurance (NASDAQ:GSHD) Shares Gap Down Following Weak Earnings

Goosehead Insurance (NASDAQ:GSHD - Get Free Report) gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $103.43, but opened at $89.02. Goosehead Insurance shares last traded at $85.77, with a volume of 603,258 shares trading hands.

The company reported $0.49 EPS for the quarter, missing analysts' consensus estimates of $0.53 by ($0.04). The business had revenue of $94.03 million for the quarter, compared to analysts' expectations of $94.18 million. Goosehead Insurance had a net margin of 9.51% and a negative return on equity of 99.91%. The business's quarterly revenue was up 20.4% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.43 earnings per share.

Wall Street Analyst Weigh In

A number of research firms have weighed in on GSHD. UBS Group dropped their target price on shares of Goosehead Insurance from $145.00 to $140.00 and set a "buy" rating for the company in a research report on Monday, April 28th. BMO Capital Markets decreased their price target on shares of Goosehead Insurance from $148.00 to $142.00 and set a "market perform" rating on the stock in a research note on Monday, April 28th. JMP Securities reissued a "market outperform" rating and issued a $150.00 target price on shares of Goosehead Insurance in a research note on Thursday, April 24th. Piper Sandler reaffirmed a "neutral" rating and issued a $109.00 price target (down previously from $122.00) on shares of Goosehead Insurance in a research note on Thursday. Finally, Keefe, Bruyette & Woods raised their price target on shares of Goosehead Insurance from $125.00 to $130.00 and gave the stock an "outperform" rating in a research note on Thursday, April 24th. One analyst has rated the stock with a sell rating, five have assigned a hold rating and four have issued a buy rating to the stock. According to data from MarketBeat.com, Goosehead Insurance currently has a consensus rating of "Hold" and an average price target of $114.10.

Insider Activity

In other Goosehead Insurance news, major shareholder & Robyn Jones Descendants Mark sold 50,000 shares of the firm's stock in a transaction dated Monday, May 12th. The stock was sold at an average price of $103.74, for a total value of $5,187,000.00. Following the sale, the insider directly owned 132,349 shares of the company's stock, valued at approximately $13,729,885.26. This trade represents a 27.42% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, General Counsel John Terry O'connor sold 2,500 shares of the firm's stock in a transaction dated Wednesday, May 14th. The stock was sold at an average price of $104.42, for a total value of $261,050.00. Following the completion of the sale, the general counsel directly owned 1,000 shares in the company, valued at approximately $104,420. The trade was a 71.43% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 118,966 shares of company stock worth $12,407,821 over the last 90 days. 48.35% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the business. Harbor Investment Advisory LLC boosted its stake in shares of Goosehead Insurance by 9.9% during the 2nd quarter. Harbor Investment Advisory LLC now owns 1,083 shares of the company's stock worth $114,000 after acquiring an additional 98 shares in the last quarter. Janus Henderson Group PLC boosted its stake in Goosehead Insurance by 0.6% during the 4th quarter. Janus Henderson Group PLC now owns 22,109 shares of the company's stock valued at $2,371,000 after purchasing an additional 139 shares during the period. TCTC Holdings LLC boosted its stake in Goosehead Insurance by 117.1% during the 1st quarter. TCTC Holdings LLC now owns 330 shares of the company's stock valued at $39,000 after purchasing an additional 178 shares during the period. KBC Group NV boosted its stake in Goosehead Insurance by 20.7% during the 1st quarter. KBC Group NV now owns 1,101 shares of the company's stock valued at $130,000 after purchasing an additional 189 shares during the period. Finally, Bessemer Group Inc. boosted its stake in Goosehead Insurance by 192.9% during the 1st quarter. Bessemer Group Inc. now owns 290 shares of the company's stock valued at $34,000 after purchasing an additional 191 shares during the period.

Goosehead Insurance Stock Performance

The firm has a fifty day simple moving average of $104.56 and a 200 day simple moving average of $108.03. The company has a current ratio of 2.79, a quick ratio of 2.79 and a debt-to-equity ratio of 2.10. The stock has a market cap of $3.26 billion, a price-to-earnings ratio of 72.62, a PEG ratio of 7.14 and a beta of 1.42.

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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