Guggenheim Initiates Coverage on Guidewire Software (NYSE:GWRE)

Key Points

• Guggenheim initiated coverage on Guidewire Software with a buy rating and a $180 price target, implying about 34% upside from the stock’s current price.
• Analyst sentiment remains favorable overall, with 12 Buy ratings and 3 Hold ratings; MarketBeat pegs the stock at a Moderate Buy consensus and an average target of $221.
• Guidewire recently beat quarterly expectations, posting EPS of $0.82 versus $0.74 expected and revenue of $372.54 million, while revenue rose 26.9% year over year.

Equities research analysts at Guggenheim began coverage on shares of Guidewire Software (NYSE:GWRE - Get Free Report) in a research report issued to clients and investors on Thursday. The firm set a "buy" rating and a $180.00 price target on the technology company's stock. Guggenheim's price objective would indicate a potential upside of 34.31% from the stock's current price.

Other equities research analysts have also issued research reports about the stock. The Goldman Sachs Group lowered their target price on shares of Guidewire Software from $255.00 to $225.00 and set a "buy" rating for the company in a report on Friday, June 5th. Royal Bank Of Canada cut their price target on shares of Guidewire Software from $250.00 to $215.00 and set an "outperform" rating on the stock in a report on Friday, June 5th. DA Davidson reduced their price objective on shares of Guidewire Software from $246.00 to $222.00 and set a "buy" rating on the stock in a research report on Monday, June 8th. Weiss Ratings reissued a "hold (c)" rating on shares of Guidewire Software in a research note on Wednesday, June 3rd. Finally, Oppenheimer dropped their target price on Guidewire Software from $250.00 to $180.00 and set an "outperform" rating for the company in a research report on Monday, May 18th. Twelve analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat.com, Guidewire Software currently has an average rating of "Moderate Buy" and an average price target of $221.00.

Guidewire Software Price Performance

Shares of Guidewire Software stock opened at $134.01 on Thursday. The stock has a market cap of $11.16 billion, a price-to-earnings ratio of 72.44 and a beta of 0.95. The company has a debt-to-equity ratio of 0.51, a quick ratio of 2.44 and a current ratio of 2.44. The stock has a 50 day moving average price of $132.56 and a 200-day moving average price of $142.10. Guidewire Software has a one year low of $102.30 and a one year high of $272.60.

Guidewire Software (NYSE:GWRE - Get Free Report) last released its quarterly earnings results on Thursday, June 4th. The technology company reported $0.82 earnings per share for the quarter, beating the consensus estimate of $0.74 by $0.08. The company had revenue of $372.54 million for the quarter, compared to analyst estimates of $355.92 million. Guidewire Software had a return on equity of 12.62% and a net margin of 11.25%.Guidewire Software's quarterly revenue was up 26.9% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.88 EPS. Equities analysts expect that Guidewire Software will post 1.83 EPS for the current year.

Insider Activity at Guidewire Software

In other news, CFO Jeffrey Elliott Cooper sold 2,594 shares of the firm's stock in a transaction that occurred on Tuesday, June 16th. The shares were sold at an average price of $118.74, for a total transaction of $308,011.56. Following the transaction, the chief financial officer directly owned 63,467 shares of the company's stock, valued at approximately $7,536,071.58. This trade represents a 3.93% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Michael George Rosenbaum sold 5,830 shares of the stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $118.74, for a total value of $692,254.20. Following the completion of the transaction, the chief executive officer directly owned 199,776 shares in the company, valued at approximately $23,721,402.24. This trade represents a 2.84% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders sold 30,193 shares of company stock worth $3,792,858. 0.46% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Guidewire Software

Institutional investors have recently made changes to their positions in the company. Measured Wealth Private Client Group LLC bought a new position in Guidewire Software during the 3rd quarter worth about $29,000. Advisors Asset Management Inc. purchased a new stake in shares of Guidewire Software in the 1st quarter worth approximately $25,000. Flagship Harbor Advisors LLC purchased a new stake in shares of Guidewire Software in the 4th quarter worth approximately $36,000. Leonteq Securities AG bought a new position in shares of Guidewire Software during the first quarter valued at approximately $36,000. Finally, Bogart Wealth LLC boosted its stake in shares of Guidewire Software by 127.8% during the first quarter. Bogart Wealth LLC now owns 246 shares of the technology company's stock valued at $37,000 after purchasing an additional 138 shares in the last quarter.

About Guidewire Software

Guidewire Software, Inc develops software products and cloud services for property and casualty (P&C) insurance carriers. Headquartered in San Mateo, California, the company's offerings are designed to help insurers manage the core functions of their business—policy administration, billing and claims—while supporting digital engagement, analytics and operational modernization.

Guidewire's core product portfolio is commonly known as the InsuranceSuite, which includes PolicyCenter for policy administration, BillingCenter for billing and receivables, and ClaimCenter for claims management.

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