Goosehead Insurance (NASDAQ:GSHD) Shares Up 9% - Should You Buy?

Key Points

• Goosehead Insurance shares rose by 9% during trading, reaching a last price of $74.86 after closing at $68.65 previously.
• Recent brokerage reports have adjusted price targets for Goosehead Insurance, with JPMorgan lowering its target from $101 to $85, while Zacks downgraded it from "hold" to "strong sell."
• The company reported a quarterly earnings miss, posting $0.46 EPS, below analysts' expectations of $0.54, alongside revenue of $90.44 million.

Goosehead Insurance (NASDAQ:GSHD - Get Free Report) shares shot up 9% during trading on Thursday . The stock traded as high as $74.85 and last traded at $74.86. 377,416 shares changed hands during trading, an increase of 23% from the average session volume of 307,478 shares. The stock had previously closed at $68.65.

Analysts Set New Price Targets

Several brokerages have recently commented on GSHD. JPMorgan Chase & Co. dropped their price target on shares of Goosehead Insurance from $101.00 to $85.00 and set a "neutral" rating on the stock in a research note on Thursday, October 9th. Zacks Research lowered shares of Goosehead Insurance from a "hold" rating to a "strong sell" rating in a research note on Friday, October 10th. Cantor Fitzgerald reaffirmed an "overweight" rating on shares of Goosehead Insurance in a report on Thursday. Piper Sandler reduced their price objective on shares of Goosehead Insurance from $79.00 to $69.00 and set a "neutral" rating for the company in a report on Thursday. Finally, JMP Securities reduced their price objective on shares of Goosehead Insurance from $150.00 to $140.00 and set a "market outperform" rating for the company in a report on Tuesday, October 14th. Six research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Hold" and an average target price of $100.73.

Goosehead Insurance Stock Performance

The firm's 50-day moving average price is $77.78 and its 200 day moving average price is $93.47. The company has a market cap of $2.87 billion, a price-to-earnings ratio of 67.71, a PEG ratio of 13.68 and a beta of 1.27.

Goosehead Insurance (NASDAQ:GSHD - Get Free Report) last issued its quarterly earnings data on Wednesday, October 22nd. The company reported $0.46 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.54 by ($0.08). Goosehead Insurance had a net margin of 8.76% and a negative return on equity of 59.49%. The firm had revenue of $90.44 million for the quarter, compared to analyst estimates of $94.25 million. During the same quarter in the prior year, the firm posted $0.50 EPS. The firm's revenue for the quarter was up 15.9% compared to the same quarter last year. Goosehead Insurance has set its FY 2025 guidance at EPS. As a group, equities research analysts predict that Goosehead Insurance will post 0.83 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, major shareholder Adrienne Kebodeaux sold 3,000 shares of the business's stock in a transaction on Tuesday, August 19th. The shares were 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 SEC, which is accessible through this link. Also, major shareholder & Robyn Jones Descendants Mark sold 600 shares of the business's stock in a transaction on Friday, August 15th. The stock was sold at an average price of $87.01, for a total transaction of $52,206.00. Following the completion of the sale, the insider directly owned 132,349 shares in the company, valued at approximately $11,515,686.49. This 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 worth $21,568,721. 48.35% of the stock is currently owned by insiders.

Institutional Trading of Goosehead Insurance

A number of institutional investors have recently made changes to their positions in the business. Wasatch Advisors LP lifted its position in shares of Goosehead Insurance by 12.6% in the second quarter. Wasatch Advisors LP now owns 2,275,369 shares of the company's stock worth $240,074,000 after purchasing an additional 253,777 shares in the last quarter. State Street Corp raised its position in Goosehead Insurance by 1.4% during the second quarter. State Street Corp now owns 1,027,500 shares of the company's stock worth $108,412,000 after acquiring an additional 14,311 shares in the last quarter. Geode Capital Management LLC raised its position in Goosehead Insurance by 25.4% during the second quarter. Geode Capital Management LLC now owns 705,284 shares of the company's stock worth $74,422,000 after acquiring an additional 143,038 shares in the last quarter. Durable Capital Partners LP bought a new stake in Goosehead Insurance during the second quarter worth $71,832,000. Finally, Balyasny Asset Management L.P. raised its position in Goosehead Insurance by 118.7% during the second quarter. Balyasny Asset Management L.P. now owns 556,760 shares of the company's stock worth $58,744,000 after acquiring an additional 302,130 shares in the last quarter.

Goosehead Insurance Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.