Goosehead Insurance (NASDAQ:GSHD) Stock Price Down 7.6% - Time to Sell?

Key Points

• Goosehead Insurance shares fell 7.6% in mid-day trading, with the stock dropping from a prior close of $39.65 to as low as $36.94. Trading volume was also well below average.
• Analyst sentiment is mixed: several firms recently adjusted price targets, and the stock currently carries an average Hold rating with a consensus target price of $67.73. UBS and Keefe, Bruyette & Woods were among those raising targets, while BMO cut its objective.
• The company reported better-than-expected EPS of $0.37 in its latest quarter, but revenue of $79.48 million came in below analyst estimates. Despite 23.1% year-over-year revenue growth, Goosehead still posted a negative return on equity.

Goosehead Insurance (NASDAQ:GSHD - Get Free Report)'s stock price was down 7.6% during mid-day trading on Wednesday . The company traded as low as $36.94 and last traded at $36.63. Approximately 104,186 shares traded hands during mid-day trading, a decline of 77% from the average daily volume of 456,313 shares. The stock had previously closed at $39.65.

Wall Street Analysts Forecast Growth

Several research firms have issued reports on GSHD. UBS Group lifted their target price on Goosehead Insurance from $81.00 to $85.00 and gave the company a "buy" rating in a research note on Monday, April 27th. BMO Capital Markets reduced their price objective on shares of Goosehead Insurance from $79.00 to $55.00 and set a "market perform" rating for the company in a research note on Wednesday, February 18th. Cantor Fitzgerald lowered their target price 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. Royal Bank Of Canada upped their price target on Goosehead Insurance from $49.00 to $52.00 and gave the stock a "sector perform" rating in a research report on Thursday, April 23rd. Finally, Keefe, Bruyette & Woods increased their price objective on Goosehead Insurance from $75.00 to $80.00 and gave the company an "outperform" rating in a report on Thursday, April 23rd. Seven investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, Goosehead Insurance presently has an average rating of "Hold" and an average target price of $67.73.

Goosehead Insurance Price Performance

The firm has a market cap of $1.30 billion, a PE ratio of 31.92, a PEG ratio of 1.47 and a beta of 1.62. The stock's fifty day simple moving average is $44.51 and its 200-day simple moving average is $59.45.

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

Insider Transactions at Goosehead Insurance

In other news, Director Louis Goldberg bought 5,575 shares of the company'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 completion of the transaction, the director directly owned 5,575 shares in the company, valued at approximately $250,038.75. This represents a ∞ increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, major shareholder & Robyn Jones Descendants Mark sold 5,090 shares of the firm's stock in a transaction that occurred on Friday, May 1st. The stock was sold at an average price of $45.32, for a total transaction of $230,678.80. Following the transaction, the insider directly owned 7,203,796 shares of the company's stock, valued at $326,476,034.72. This represents a 0.07% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 10,576 shares of company stock valued at $494,568 in the last ninety days. Corporate insiders own 38.07% of the company's stock.

Institutional Investors Weigh In On Goosehead Insurance

Several hedge funds and other institutional investors have recently added to or reduced their stakes in GSHD. Wasatch Advisors LP lifted its holdings in shares of Goosehead Insurance by 32.3% in the 1st quarter. Wasatch Advisors LP now owns 2,292,227 shares of the company's stock valued at $97,786,000 after buying an additional 559,087 shares during the period. T. Rowe Price Investment Management Inc. grew its stake in shares of Goosehead Insurance by 38.5% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 2,002,003 shares of the company's stock worth $147,448,000 after purchasing an additional 556,293 shares during the period. Durable Capital Partners LP increased its holdings in shares of Goosehead Insurance by 126.5% during the 3rd quarter. Durable Capital Partners LP now owns 1,542,186 shares of the company's stock valued at $114,769,000 after purchasing an additional 861,374 shares in the last quarter. DF Dent & Co. Inc. lifted its stake in shares of Goosehead Insurance by 3.2% in the 4th quarter. DF Dent & Co. Inc. now owns 1,044,660 shares of the company's stock valued at $76,939,000 after purchasing an additional 32,246 shares during the period. Finally, State Street Corp grew 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 valued at $108,412,000 after buying an additional 14,311 shares during the period.

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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