Guidewire Software (NYSE:GWRE) Stock Price Down 9.3% - What's Next?

Key Points

• Guidewire Software shares fell 9.3% to about $151.70 in low-volume trading, while the stock’s consensus analyst rating remained “Moderate Buy” with an average price target of $221.
• The company’s latest quarterly results exceeded expectations, with EPS of $0.82 versus the $0.74 consensus and revenue of $372.54 million, up 26.9% year over year.
• Insiders sold shares primarily to cover tax obligations tied to equity awards, while several major institutional investors—including Principal Financial Group and AllianceBernstein—substantially increased their holdings.

Guidewire Software, Inc. (NYSE:GWRE - Get Free Report)'s share price was down 9.3% during trading on Thursday . The stock traded as low as $153.43 and last traded at $151.7030. 181,901 shares were traded during trading, a decline of 89% from the average session volume of 1,631,951 shares. The stock had previously closed at $167.26.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently commented on GWRE shares. Zacks Research lowered Guidewire Software from a "strong-buy" rating to a "hold" rating in a research report on Monday, May 25th. BTIG Research restated a "buy" rating and set a $175.00 target price on shares of Guidewire Software in a report on Thursday, July 2nd. Weiss Ratings reiterated a "hold (c)" rating on shares of Guidewire Software in a report on Wednesday, June 3rd. DA Davidson lowered their price objective on shares of Guidewire Software from $246.00 to $222.00 and set a "buy" rating for the company in a research report on Monday, June 8th. Finally, Citizens Jmp cut their price objective on shares of Guidewire Software from $300.00 to $220.00 and set a "market outperform" rating on the stock in a research report on Friday, June 5th. One analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and three have given a Hold rating to the company. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $221.00.

Guidewire Software Trading Down 9.0%

The firm has a market cap of $12.67 billion, a P/E ratio of 82.51 and a beta of 0.95. The business's 50-day moving average is $134.05 and its two-hundred day moving average is $140.80. The company has a debt-to-equity ratio of 0.51, a current ratio of 2.44 and a quick ratio of 2.44.

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

Insider Buying and Selling

In related news, CFO Jeffrey Elliott Cooper sold 2,594 shares of the firm's stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $118.74, for a total value of $308,011.56. Following the completion of 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 transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, President John P. Mullen sold 4,292 shares of the firm's stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $118.74, for a total transaction of $509,632.08. Following the completion of the transaction, the president directly owned 131,115 shares of the company's stock, valued at $15,568,595.10. This represents a 3.17% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 30,193 shares of company stock valued at $3,797,922 in the last ninety days. 0.46% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the company. Capital World Investors acquired a new stake in Guidewire Software in the 4th quarter valued at about $202,405,000. Principal Financial Group Inc. raised its stake in 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. Alliancebernstein L.P. lifted its position in shares of Guidewire Software by 405.1% in the second quarter. Alliancebernstein L.P. now owns 538,303 shares of the technology company's stock valued at $126,743,000 after buying an additional 431,725 shares during the last quarter. Stockbridge Partners LLC lifted its position in shares of Guidewire Software by 39.0% in the fourth 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. Finally, Assenagon Asset Management S.A. boosted its stake in shares of Guidewire Software by 179.0% during the 1st quarter. Assenagon Asset Management S.A. now owns 628,759 shares of the technology company's stock worth $94,037,000 after acquiring an additional 403,370 shares during the period.

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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