Guidewire Software (NYSE:GWRE) Shares Up 12.2% - Here's What Happened

Key Points

• Guidewire Software shares surged 12.2% on Monday, climbing as high as $170.07 after closing at $152.67, even though trading volume was below average.
• Recent analyst updates were mixed but still generally positive: several firms cut price targets, while others maintained bullish ratings. Overall, Guidewire has a Moderate Buy rating and an average target price of $244.46.
• The company recently posted strong quarterly results, beating EPS and revenue estimates with 24% year-over-year revenue growth. Insider selling also continued, including sales by the CEO and CAO over the past few months.

Guidewire Software, Inc. (NYSE:GWRE - Get Free Report)'s share price shot up 12.2% during trading on Monday . The stock traded as high as $170.07 and last traded at $171.3030. 751,341 shares changed hands during trading, a decline of 52% from the average session volume of 1,555,904 shares. The stock had previously closed at $152.67.

Analysts Set New Price Targets

Several brokerages have recently commented on GWRE. Royal Bank Of Canada cut their price target on Guidewire Software from $300.00 to $250.00 and set an "outperform" rating on the stock in a research note on Friday, March 6th. Wells Fargo & Company cut their price target on Guidewire Software from $250.00 to $210.00 and set an "overweight" rating on the stock in a research note on Wednesday, February 4th. Oppenheimer cut their price target on Guidewire Software from $250.00 to $180.00 and set an "outperform" rating on the stock in a research note on Monday, May 18th. BTIG Research raised their price target on Guidewire Software from $175.00 to $200.00 and gave the company a "buy" rating in a research note on Friday, March 6th. Finally, Zacks Research lowered Guidewire Software from a "strong-buy" rating to a "hold" rating in a research note on Monday, May 25th. Eleven investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Guidewire Software currently has an average rating of "Moderate Buy" and an average target price of $244.46.

Guidewire Software Price Performance

The firm has a 50 day simple moving average of $139.88 and a 200-day simple moving average of $162.76. The company has a quick ratio of 2.93, a current ratio of 2.93 and a debt-to-equity ratio of 0.45. The company has a market cap of $14.54 billion, a PE ratio of 77.86 and a beta of 0.93.

Guidewire Software (NYSE:GWRE - Get Free Report) last posted its earnings results on Thursday, March 5th. The technology company reported $1.17 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.77 by $0.40. Guidewire Software had a return on equity of 13.44% and a net margin of 14.11%.The company had revenue of $359.10 million for the quarter, compared to analyst estimates of $342.88 million. During the same quarter in the previous year, the firm earned $0.51 earnings per share. The firm's quarterly revenue was up 24.0% compared to the same quarter last year. As a group, research analysts predict that Guidewire Software, Inc. will post 1.84 earnings per share for the current fiscal year.

Insider Transactions at Guidewire Software

In other news, CAO David Franklin Peterson sold 273 shares of the business's stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $163.86, for a total transaction of $44,733.78. Following the sale, the chief accounting officer owned 12,533 shares in the company, valued at approximately $2,053,657.38. The trade was a 2.13% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Michael George Rosenbaum sold 1,200 shares of the business's stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $138.51, for a total value of $166,212.00. Following the sale, the chief executive officer owned 209,206 shares in the company, valued at $28,977,123.06. The trade was a 0.57% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 32,479 shares of company stock worth $5,024,174 in the last 90 days. Insiders own 0.46% of the company's stock.

Institutional Investors Weigh In On Guidewire Software

A number of large investors have recently modified their holdings of the business. Dynamic Technology Lab Private Ltd lifted its holdings in shares of Guidewire Software by 901.1% during the third quarter. Dynamic Technology Lab Private Ltd now owns 9,110 shares of the technology company's stock worth $2,094,000 after purchasing an additional 8,200 shares during the period. Comerica Bank lifted its holdings in shares of Guidewire Software by 52.0% during the fourth quarter. Comerica Bank now owns 78,659 shares of the technology company's stock worth $15,811,000 after purchasing an additional 26,912 shares during the period. BDF Gestion acquired a new stake in shares of Guidewire Software during the fourth quarter worth about $1,803,000. American Century Companies Inc. lifted its holdings in shares of Guidewire Software by 3.4% during the third quarter. American Century Companies Inc. now owns 520,390 shares of the technology company's stock worth $119,617,000 after purchasing an additional 17,104 shares during the period. Finally, Fieldview Capital Management LLC acquired a new stake in shares of Guidewire Software during the third quarter worth about $2,862,000.

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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