Goosehead Insurance (NASDAQ:GSHD) Shares Gap Down on Disappointing Earnings

Goosehead Insurance (NASDAQ:GSHD - Get Free Report)'s stock price gapped down prior to trading 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 changing hands.

The company reported $0.49 earnings per share 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 firm 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 firm earned $0.43 EPS. Goosehead Insurance's revenue for the quarter was up 20.4% compared to the same quarter last year.

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on GSHD shares. JMP Securities restated a "market outperform" rating and issued a $150.00 target price on shares of Goosehead Insurance in a report on Thursday, April 24th. Piper Sandler reissued a "neutral" rating and issued a $109.00 price objective (down from $122.00) on shares of Goosehead Insurance in a research report on Thursday. Keefe, Bruyette & Woods lowered their price objective on shares of Goosehead Insurance from $130.00 to $120.00 and set an "outperform" rating for the company in a research report on Thursday. JPMorgan Chase & Co. lowered their price objective on shares of Goosehead Insurance from $100.00 to $98.00 and set a "neutral" rating for the company in a research report on Thursday, April 24th. Finally, BMO Capital Markets lowered their price objective on shares of Goosehead Insurance from $142.00 to $110.00 and set a "market perform" rating for the company in a research report on Friday. One analyst has rated the stock with a sell rating, five have issued a hold rating and four have given a buy rating to the stock. According to data from MarketBeat, Goosehead Insurance currently has an average rating of "Hold" and a consensus price target of $109.90.

Insider Buying and Selling

In related news, major shareholder Lindy Langston sold 11,042 shares of the business's stock in a transaction that occurred on Tuesday, May 27th. The shares were sold at an average price of $110.20, for a total transaction of $1,216,828.40. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, General Counsel John Terry O'connor sold 2,500 shares of the firm's stock in a transaction on Wednesday, May 14th. The stock was sold at an average price of $104.42, for a total transaction of $261,050.00. Following the completion of the transaction, the general counsel directly owned 1,000 shares of the company's stock, valued at approximately $104,420. This represents a 71.43% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 118,966 shares of company stock worth $12,407,821 in the last 90 days. 37.76% of the stock is owned by corporate insiders.

Institutional Trading of Goosehead Insurance

A number of hedge funds and other institutional investors have recently made changes to their positions in GSHD. Raymond James Financial Inc. acquired a new stake in shares of Goosehead Insurance in the fourth quarter worth $491,000. HighTower Advisors LLC boosted its holdings in Goosehead Insurance by 5.1% during the fourth quarter. HighTower Advisors LLC now owns 5,299 shares of the company's stock worth $568,000 after buying an additional 259 shares in the last quarter. KLP Kapitalforvaltning AS purchased a new stake in Goosehead Insurance during the fourth quarter worth $536,000. LPL Financial LLC purchased a new stake in Goosehead Insurance during the fourth quarter worth $251,000. Finally, Vanguard Group Inc. boosted its holdings in Goosehead Insurance by 0.8% during the fourth quarter. Vanguard Group Inc. now owns 2,499,479 shares of the company's stock worth $267,994,000 after buying an additional 19,980 shares in the last quarter.

Goosehead Insurance Price Performance

The stock's fifty day moving average is $103.63 and its 200-day moving average is $107.87. The stock has a market capitalization of $3.19 billion, a PE ratio of 75.13, a P/E/G ratio of 7.25 and a beta of 1.42. The company has a debt-to-equity ratio of 2.10, a current ratio of 2.92 and a quick ratio of 2.92.

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.