Goosehead Insurance (NASDAQ:GSHD) Shares Gap Down - What's Next?

Key Points

• Goosehead Insurance shares gapped down ahead of Thursday’s open, falling from a prior close of $39.65 to an open of $36.41 and last trading around $37.53.
• Analysts have become more cautious overall, with several firms cutting price targets; the stock now carries a consensus Hold rating and an average target of $67.73.
• The company’s latest quarter showed earnings beat expectations at $0.37 per share, but revenue came in below estimates at $79.48 million even as sales rose 23.1% year over year.

Goosehead Insurance (NASDAQ:GSHD - Get Free Report)'s share price gapped down before the market opened on Thursday . The stock had previously closed at $39.65, but opened at $36.41. Goosehead Insurance shares last traded at $37.53, with a volume of 7,644 shares traded.

Analysts Set New Price Targets

Several research firms have weighed in on GSHD. Bank of America dropped their price target on shares of Goosehead Insurance from $43.00 to $37.00 and set an "underperform" rating for the company in a research note on Tuesday, April 14th. Truist Financial decreased their price objective on Goosehead Insurance from $72.00 to $58.00 and set a "hold" rating on the stock in a report on Wednesday, February 18th. Citizens Jmp lowered their price objective on Goosehead Insurance from $125.00 to $100.00 and set a "market outperform" rating for the company in a research report on Monday, April 13th. UBS Group raised their target price on Goosehead Insurance from $81.00 to $85.00 and gave the stock a "buy" rating in a research note on Monday, April 27th. Finally, Cantor Fitzgerald reduced their target price on Goosehead Insurance from $84.00 to $67.00 and set an "overweight" rating on the stock in a research report on Thursday, April 9th. Seven equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, Goosehead Insurance presently has a consensus rating of "Hold" and an average price target of $67.73.

Goosehead Insurance Trading Up 1.4%

The firm's fifty day moving average price is $44.13 and its 200 day moving average price is $59.19. The stock has a market capitalization of $1.31 billion, a price-to-earnings ratio of 32.48, a price-to-earnings-growth ratio of 1.46 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, beating the consensus estimate of $0.20 by $0.17. The firm had revenue of $79.48 million during the quarter, compared to the consensus estimate 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 revenue for the quarter was up 23.1% on a year-over-year basis. During the same quarter last year, the firm earned $0.26 EPS. On average, analysts forecast that Goosehead Insurance will post 1.4 earnings per share for the current fiscal year.

Insider Buying and Selling at Goosehead Insurance

In other news, Director Louis Goldberg acquired 5,575 shares of the business's stock in a transaction that occurred on Friday, February 20th. The shares were purchased at an average price of $44.85 per share, for a total transaction of $250,038.75. Following the acquisition, the director owned 5,575 shares of the company's stock, valued at $250,038.75. This represents a ∞ increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, major shareholder & Robyn Jones Descendants Mark sold 5,090 shares of the firm's stock in a transaction dated Friday, May 1st. The shares were sold at an average price of $45.32, for a total value of $230,678.80. Following the transaction, the insider 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 ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 10,576 shares of company stock worth $494,568 in the last quarter. Company insiders own 38.07% of the company's stock.

Institutional Investors Weigh In On Goosehead Insurance

Several large investors have recently added to or reduced their stakes in GSHD. EverSource Wealth Advisors LLC boosted its position in Goosehead Insurance by 480.4% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 325 shares of the company's stock valued at $34,000 after buying an additional 269 shares during the period. Kestra Advisory Services LLC acquired a new stake in shares of Goosehead Insurance in the fourth quarter valued at $41,000. Northwestern Mutual Wealth Management Co. raised its stake in shares of Goosehead Insurance by 802.0% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 442 shares of the company's stock valued at $47,000 after acquiring an additional 393 shares in the last quarter. Fifth Third Bancorp boosted its holdings in Goosehead Insurance by 71.4% in the third quarter. Fifth Third Bancorp now owns 682 shares of the company's stock valued at $51,000 after purchasing an additional 284 shares during the period. Finally, Quadrant Capital Group LLC grew its stake in Goosehead Insurance by 614.3% during the 4th quarter. Quadrant Capital Group LLC now owns 1,000 shares of the company's stock worth $74,000 after purchasing an additional 860 shares in the last quarter.

About Goosehead Insurance

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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