Guidewire Software (NYSE:GWRE) Price Target Cut to $220.00 by Analysts at Citizens Jmp

Key Points

• Citizens JMP cut its price target on Guidewire Software from $300 to $220, while keeping a market outperform rating. The new target still implies about 45% upside from the prior close.
• Guidewire’s latest quarterly results beat expectations, posting $0.82 EPS versus $0.79 expected and $372.5 million in revenue versus $355.9 million forecast. Revenue rose 26.9% year over year.
• Despite strong results, the stock has drawn mixed sentiment from analysts, with some firms cutting targets or downgrading ratings. The shares opened at $151.27, well below the new target but also far off the 12-month high of $272.60.

Guidewire Software (NYSE:GWRE - Get Free Report) had its price target dropped by investment analysts at Citizens Jmp from $300.00 to $220.00 in a research note issued to investors on Friday,Benzinga reports. The firm presently has a "market outperform" rating on the technology company's stock. Citizens Jmp's target price indicates a potential upside of 45.43% from the company's previous close.

Several other brokerages have also issued reports on GWRE. Zacks Research lowered Guidewire Software from a "strong-buy" rating to a "hold" rating in a research note on Monday, May 25th. DA Davidson reaffirmed a "buy" rating and issued a $246.00 price objective on shares of Guidewire Software in a research note on Tuesday. Oppenheimer decreased their target price on Guidewire Software from $250.00 to $180.00 and set an "outperform" rating on the stock in a research report on Monday, May 18th. Royal Bank Of Canada dropped their target price on shares of Guidewire Software from $300.00 to $250.00 and set an "outperform" rating for the company in a report on Friday, March 6th. Finally, Weiss Ratings reaffirmed a "hold (c)" rating on shares of Guidewire Software in a report on Wednesday. Eleven research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $246.42.

Guidewire Software Price Performance

GWRE stock opened at $151.27 on Friday. The company's 50-day moving average price is $140.32 and its two-hundred day moving average price is $161.08. The firm has a market cap of $12.81 billion, a P/E ratio of 68.76 and a beta of 0.93. The company has a quick ratio of 2.93, a current ratio of 2.93 and a debt-to-equity ratio of 0.45. Guidewire Software has a 12 month low of $115.57 and a 12 month high of $272.60.

Guidewire Software (NYSE:GWRE - Get Free Report) last announced its quarterly earnings data on Thursday, June 4th. The technology company reported $0.82 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.79 by $0.03. Guidewire Software had a net margin of 14.11% and a return on equity of 13.44%. The business had revenue of $372.54 million for the quarter, compared to analysts' expectations of $355.92 million. During the same period last year, the firm posted $0.88 earnings per share. The firm's quarterly revenue was up 26.9% compared to the same quarter last year. On average, analysts anticipate that Guidewire Software will post 1.84 earnings per share for the current fiscal year.

Insider Activity at Guidewire Software

In other news, CEO Michael George Rosenbaum sold 1,200 shares of the company's stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $158.92, for a total value of $190,704.00. Following the completion of the transaction, the chief executive officer owned 208,006 shares of the company's stock, valued at $33,056,313.52. This represents a 0.57% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 33,679 shares of company stock worth $5,214,878 over the last quarter. Company insiders own 0.46% of the company's stock.

Hedge Funds Weigh In On Guidewire Software

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. increased its holdings in Guidewire Software by 1.3% in the third quarter. Vanguard Group Inc. now owns 9,039,377 shares of the technology company's stock valued at $2,077,791,000 after purchasing an additional 116,726 shares during the period. Geode Capital Management LLC lifted its holdings in Guidewire Software by 8.9% during the 4th quarter. Geode Capital Management LLC now owns 1,778,201 shares of the technology company's stock worth $357,504,000 after buying an additional 145,924 shares during the period. Stockbridge Partners LLC grew its position in shares of Guidewire Software by 39.0% in the 4th quarter. Stockbridge Partners LLC now owns 1,445,206 shares of the technology company's stock valued at $290,501,000 after buying an additional 405,850 shares during the last quarter. AQR Capital Management LLC grew its position in shares of Guidewire Software by 3.6% in the 4th quarter. AQR Capital Management LLC now owns 1,316,817 shares of the technology company's stock valued at $264,693,000 after buying an additional 45,289 shares during the last quarter. Finally, Principal Financial Group Inc. increased its stake in shares of Guidewire Software by 547.3% in the first quarter. Principal Financial Group Inc. now owns 1,180,334 shares of the technology company's stock valued at $176,537,000 after buying an additional 997,992 shares during the period.

Key Guidewire Software News

Here are the key news stories impacting Guidewire Software this week:

• Positive Sentiment: Guidewire beat estimates on both the top and bottom lines, posting $0.82 EPS versus the $0.79 consensus and $372.5 million in revenue versus $355.9 million expected. Revenue also rose 26.9% year over year, showing strong demand for its insurance software platform. Article Title
• Positive Sentiment: The company said its third-quarter performance reinforced confidence in business momentum and pointed to a record fourth quarter, which can support investor optimism about continued growth. Article Title
• Neutral Sentiment: Guidewire also lifted revenue guidance for fiscal 2026 and the fourth quarter, with outlooks above consensus, but the available filings did not clearly show the EPS guide in the provided text. Article Title
• Negative Sentiment: Even with the beat-and-raise setup, GWRE traded lower as investors appeared to weigh that earnings per share was down from $0.88 a year ago and may be looking for even stronger profit expansion from a company valued at a premium multiple. Article Title

Guidewire Software Company Profile

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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