Guidewire Software (NYSE:GWRE) Price Target Cut to $225.00 by Analysts at The Goldman Sachs Group

Key Points

• Goldman Sachs cut its price target on Guidewire Software from $255 to $225, while keeping a buy rating. The new target still implies about 65% upside from the prior close.
• Guidewire reported solid fiscal Q3 results, with EPS of $0.82 and revenue of $372.5 million both beating estimates. Revenue jumped 26.9% year over year, and the company also raised full-year guidance.
• The stock fell sharply after the update, trading down about 10% to $136. Analysts have mostly remained constructive overall, but several have trimmed price targets, signaling valuation concerns.

Guidewire Software (NYSE:GWRE - Get Free Report) had its target price decreased by analysts at The Goldman Sachs Group from $255.00 to $225.00 in a research note issued on Friday,Benzinga reports. The firm currently has a "buy" rating on the technology company's stock. The Goldman Sachs Group's price target indicates a potential upside of 65.44% from the company's previous close.

Several other equities analysts have also recently weighed in on the stock. Stifel Nicolaus decreased their price target on shares of Guidewire Software from $225.00 to $200.00 and set a "buy" rating for the company in a research note on Friday. BTIG Research restated a "buy" rating and set a $200.00 target price on shares of Guidewire Software in a report on Tuesday. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Guidewire Software in a research report on Wednesday. Royal Bank Of Canada decreased their price target on Guidewire Software from $250.00 to $215.00 and set an "outperform" rating for the company in a research note on Friday. Finally, Zacks Research downgraded Guidewire Software from a "strong-buy" rating to a "hold" rating in a research note on Monday, May 25th. Eleven equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, Guidewire Software presently has an average rating of "Moderate Buy" and an average target price of $231.00.

Guidewire Software Stock Down 10.0%

Shares of GWRE stock traded down $15.17 during trading hours on Friday, hitting $136.00. 2,122,655 shares of the company were exchanged, compared to its average volume of 1,593,047. Guidewire Software has a 52 week low of $115.57 and a 52 week high of $272.60. The company has a current ratio of 2.93, a quick ratio of 2.93 and a debt-to-equity ratio of 0.45. The business has a 50 day moving average of $140.32 and a two-hundred day moving average of $161.08. The company has a market capitalization of $11.51 billion, a PE ratio of 61.66 and a beta of 0.93.

Guidewire Software (NYSE:GWRE - Get Free Report) last released its earnings results on Thursday, June 4th. The technology company reported $0.82 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.79 by $0.03. Guidewire Software had a return on equity of 13.44% and a net margin of 14.11%.The firm had revenue of $372.54 million during the quarter, compared to analysts' expectations of $355.92 million. During the same quarter in the prior year, the company earned $0.88 EPS. The company's revenue was up 26.9% on a year-over-year basis. Analysts anticipate that Guidewire Software will post 1.84 earnings per share for the current fiscal year.

Insider Activity at Guidewire Software

In other Guidewire Software news, CFO Jeffrey Elliott Cooper sold 4,757 shares of the stock in a transaction that occurred on Friday, March 13th. The shares were sold at an average price of $158.72, for a total value of $755,031.04. Following the sale, the chief financial officer directly owned 67,996 shares in the company, valued at $10,792,325.12. This represents a 6.54% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Michael George Rosenbaum sold 4,737 shares of Guidewire Software stock in a transaction that occurred on Tuesday, March 17th. The shares were sold at an average price of $163.86, for a total transaction of $776,204.82. Following the sale, the chief executive officer owned 221,206 shares of the company's stock, valued at approximately $36,246,815.16. The trade was a 2.10% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 33,679 shares of company stock worth $5,214,878. 0.46% of the stock is owned by company insiders.

Institutional Trading of Guidewire Software

A number of hedge funds and other institutional investors have recently modified their holdings of GWRE. Parallel Advisors LLC boosted its position in Guidewire Software by 44.7% in the 1st quarter. Parallel Advisors LLC now owns 4,561 shares of the technology company's stock valued at $682,000 after buying an additional 1,409 shares during the period. Glenmede Trust Co. NA lifted its stake in shares of Guidewire Software by 35.5% during the 1st quarter. Glenmede Trust Co. NA now owns 2,030 shares of the technology company's stock worth $304,000 after purchasing an additional 532 shares during the last quarter. Edgestream Partners L.P. purchased a new position in Guidewire Software in the first quarter valued at about $637,000. California State Teachers Retirement System raised its holdings in Guidewire Software by 22.5% in the first quarter. California State Teachers Retirement System now owns 98,191 shares of the technology company's stock worth $14,685,000 after purchasing an additional 18,042 shares in the last quarter. Finally, Regal Partners Ltd purchased a new stake in shares of Guidewire Software during the first quarter valued at about $3,432,000.

Guidewire Software News Summary

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

• Positive Sentiment: Guidewire beat fiscal Q3 expectations with EPS of $0.82 and revenue of $372.5 million, while revenue rose 26.9% year over year and ARR increased 19%, highlighting solid demand for its insurance software platform. Article Title
• Positive Sentiment: The company lifted full-year revenue, profit and cash flow guidance, and its Q4 revenue outlook of $396 million to $406 million was above the consensus estimate, reinforcing management’s confidence in continued momentum. Article Title
• Neutral Sentiment: Several analysts trimmed price targets after the results, including Stifel, RBC, Wells Fargo and Citizens JMP, but most kept bullish ratings, suggesting valuation concerns more than a change in long-term outlook. Article Title
• Negative Sentiment: Despite the earnings beat, the stock fell as the market appears focused on software-sector pressure and the possibility that expectations had already run ahead of results. 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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