Goosehead Insurance (NASDAQ:GSHD) Stock Price Up 7.5% - Still a Buy?

Key Points

• Goosehead Insurance shares jumped 7.5% in mid-day trading, reaching as high as $54.80 after closing at $51.65 the prior day. Trading volume was far below normal, with just 54,988 shares changing hands.
• Wall Street remains mixed on the stock: analysts recently adjusted price targets and ratings, leaving Goosehead with an overall Hold rating and an average target price of $68.73. Current views range from Buy/Overweight to Underperform/Sell.
• The company posted better-than-expected EPS of $0.37 in its latest quarter, though revenue fell short of estimates at $79.48 million. Insiders also bought shares in recent months, while institutions have been increasing small positions in the stock.

Goosehead Insurance (NASDAQ:GSHD - Get Free Report)'s share price traded up 7.5% during mid-day trading on Thursday . The stock traded as high as $54.80 and last traded at $55.5180. 54,988 shares traded hands during trading, a decline of 89% from the average daily volume of 493,384 shares. The stock had previously closed at $51.65.

Wall Street Analyst Weigh In

Several equities analysts have commented on GSHD shares. Weiss Ratings upgraded shares of Goosehead Insurance from a "sell (d)" rating to a "sell (d+)" rating in a report on Thursday, July 9th. JPMorgan Chase & Co. raised their target price on shares of Goosehead Insurance from $55.00 to $60.00 and gave the stock a "neutral" rating in a research note on Monday. Citizens Jmp reduced their target price on shares of Goosehead Insurance from $125.00 to $100.00 and set a "market outperform" rating for the company in a report on Monday, April 13th. Cantor Fitzgerald upped their price target on shares of Goosehead Insurance from $67.00 to $76.00 and gave the company an "overweight" rating in a research note on Thursday, July 9th. Finally, Bank of America lowered their price target on shares of Goosehead Insurance from $43.00 to $37.00 and set an "underperform" rating on the stock in a report on Tuesday, April 14th. Seven equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, Goosehead Insurance presently has an average rating of "Hold" and an average target price of $68.73.

Goosehead Insurance Trading Up 6.7%

The stock has a market cap of $1.96 billion, a P/E ratio of 48.32, a PEG ratio of 1.76 and a beta of 1.41. The firm has a 50-day simple moving average of $42.29 and a two-hundred day simple moving average of $49.86.

Goosehead Insurance (NASDAQ:GSHD - Get Free Report) last announced its earnings results on Thursday, April 23rd. The company reported $0.37 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.20 by $0.17. Goosehead Insurance had a net margin of 7.94% and a negative return on equity of 20.96%. The company had revenue of $79.48 million during the quarter, compared to analysts' expectations of $105.16 million. During the same quarter in the previous year, the business posted $0.26 earnings per share. Goosehead Insurance's quarterly revenue was up 23.1% on a year-over-year basis. Sell-side analysts predict that Goosehead Insurance will post 1.47 earnings per share for the current year.

Insider Buying and Selling at Goosehead Insurance

In related news, General Counsel Martin Ellis Thornthwaite purchased 5,000 shares of the business's stock in a transaction that occurred on Monday, May 18th. The stock was acquired at an average cost of $41.50 per share, for a total transaction of $207,500.00. Following the completion of the purchase, the general counsel owned 5,000 shares in the company, valued at approximately $207,500. This represents a ∞ increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO John Arthur Martin purchased 5,000 shares of Goosehead Insurance stock in a transaction that occurred on Thursday, May 28th. The shares were bought at an average cost of $34.73 per share, for a total transaction of $173,650.00. Following the transaction, the chief financial officer directly owned 5,000 shares of the company's stock, valued at $173,650. This represents a ∞ increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last 90 days, insiders bought 12,800 shares of company stock worth $480,718 and sold 219,192 shares worth $9,092,267. Company insiders own 38.07% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of GSHD. MassMutual Private Wealth & Trust FSB lifted its holdings in shares of Goosehead Insurance by 484.1% during the 2nd quarter. MassMutual Private Wealth & Trust FSB now owns 514 shares of the company's stock worth $25,000 after acquiring an additional 426 shares during the period. EverSource Wealth Advisors LLC increased its stake in shares of 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 purchasing an additional 269 shares during the last quarter. Versant Capital Management Inc increased its stake in shares of Goosehead Insurance by 471.9% in the 2nd quarter. Versant Capital Management Inc now owns 772 shares of the company's stock valued at $37,000 after purchasing an additional 637 shares during the last quarter. Kestra Advisory Services LLC acquired a new position in shares of Goosehead Insurance during the 4th quarter worth $41,000. Finally, Northwestern Mutual Wealth Management Co. raised its holdings in shares of Goosehead Insurance by 802.0% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 442 shares of the company's stock worth $47,000 after buying an additional 393 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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