Goosehead Insurance (NASDAQ:GSHD) Stock Price Up 5.4% - Should You Buy?

Key Points

• Goosehead Insurance shares rose 5.4% on Tuesday, trading as high as $38.38 after closing at $36.05 the prior day, though volume was sharply below average.
• Analysts remain cautious overall: several firms recently trimmed price targets, and the stock currently carries a consensus Hold rating with a $65.09 target price.
• The company reported better-than-expected earnings last quarter, posting $0.37 EPS versus the $0.20 estimate, while revenue grew 23.1% year over year despite missing sales expectations.

Goosehead Insurance (NASDAQ:GSHD - Get Free Report) rose 5.4% on Tuesday . The stock traded as high as $38.38 and last traded at $38.01. Approximately 41,688 shares changed hands during trading, a decline of 91% from the average daily volume of 465,686 shares. The stock had previously closed at $36.05.

Analyst Ratings Changes

GSHD has been the topic of several research analyst reports. Citigroup reissued an "outperform" rating on shares of Goosehead Insurance in a research report on Wednesday, February 18th. BMO Capital Markets cut their target price on Goosehead Insurance from $79.00 to $55.00 and set a "market perform" rating on the stock in a research report on Wednesday, February 18th. UBS Group cut their target price on Goosehead Insurance from $85.00 to $67.00 and set a "buy" rating on the stock in a research report on Tuesday, June 9th. JPMorgan Chase & Co. cut their target price on Goosehead Insurance from $58.00 to $55.00 and set a "neutral" rating on the stock in a research report on Thursday, May 14th. Finally, Piper Sandler cut their target price on Goosehead Insurance from $60.00 to $52.00 and set an "overweight" rating on the stock in a research report on Tuesday, May 26th. Seven research analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, Goosehead Insurance presently has a consensus rating of "Hold" and a consensus target price of $65.09.

Goosehead Insurance Trading Up 4.0%

The business's fifty day moving average price is $41.02 and its 200 day moving average price is $54.07. The firm has a market capitalization of $1.33 billion, a price-to-earnings ratio of 32.95, a PEG ratio of 1.27 and a beta of 1.52.

Goosehead Insurance (NASDAQ:GSHD - Get Free Report) last announced its earnings results on Thursday, April 23rd. The company reported $0.37 EPS for the quarter, beating analysts' consensus estimates of $0.20 by $0.17. The business had revenue of $79.48 million for the quarter, compared to analysts' expectations of $105.16 million. Goosehead Insurance had a net margin of 7.94% and a negative return on equity of 20.96%. The company's quarterly revenue was up 23.1% on a year-over-year basis. During the same period in the previous year, the company posted $0.26 EPS. As a group, sell-side analysts forecast that Goosehead Insurance will post 1.49 earnings per share for the current fiscal year.

Insider Buying and Selling at Goosehead Insurance

In other Goosehead Insurance news, major shareholder & Robyn Jones Descendants Mark sold 82,689 shares of Goosehead Insurance stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $41.77, for a total value of $3,453,919.53. Following the transaction, the insider directly owned 7,050,356 shares in the company, valued at approximately $294,493,370.12. This trade represents a 1.16% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO John Arthur Martin bought 5,000 shares of the stock in a transaction on Thursday, May 28th. The stock was bought at an average price of $34.73 per share, for a total transaction of $173,650.00. Following the completion of the purchase, the chief financial officer directly owned 5,000 shares in the company, valued at approximately $173,650. The trade was a ∞ increase in their position. The SEC filing for this purchase provides additional information. Over the last quarter, insiders acquired 12,800 shares of company stock valued at $480,718 and sold 219,192 shares valued at $9,092,267. 38.07% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Wasatch Advisors LP grew its stake 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 purchasing an additional 559,087 shares during the last quarter. T. Rowe Price Investment Management Inc. grew its stake in shares of Goosehead Insurance by 38.5% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 2,002,003 shares of the company's stock valued at $147,448,000 after purchasing an additional 556,293 shares during the last quarter. Durable Capital Partners LP grew its stake in shares of Goosehead Insurance by 126.5% in 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 during the last quarter. DF Dent & Co. Inc. grew 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 last quarter. Finally, State Street Corp grew its stake in shares of Goosehead Insurance by 1.4% in the 2nd quarter. State Street Corp now owns 1,027,500 shares of the company's stock valued at $108,412,000 after purchasing an additional 14,311 shares during the last quarter.

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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