Guidewire Software (NYSE:GWRE) Stock Price Up 7.1% - Time to Buy?

Key Points

• Guidewire Software stock rose 7.1% in Thursday trading, reaching as high as $150.44 after closing at $140.54 the prior day. Volume was lighter than average, with about 717,205 shares traded.
• Wall Street remains broadly positive on the name despite some lower price targets: the stock has 11 Buy ratings and 3 Hold ratings, with a consensus rating of Moderate Buy and an average target price of $224.42.
• Guidewire’s latest earnings beat expectations, posting $0.82 EPS versus $0.74 expected and revenue of $372.54 million, up 26.9% year over year. The company also reported solid liquidity and manageable leverage, while several insiders recently sold shares under pre-arranged trading plans.

Guidewire Software, Inc. (NYSE:GWRE - Get Free Report)'s stock price was up 7.1% during mid-day trading on Thursday . The stock traded as high as $150.44 and last traded at $150.4950. Approximately 717,205 shares traded hands during trading, a decline of 57% from the average session volume of 1,659,057 shares. The stock had previously closed at $140.54.

Wall Street Analyst Weigh In

A number of research firms recently issued reports on GWRE. Wells Fargo & Company decreased their price objective on Guidewire Software from $210.00 to $190.00 and set an "overweight" rating on the stock in a research note on Friday, June 5th. DA Davidson cut their target price on Guidewire Software from $246.00 to $222.00 and set a "buy" rating for the company in a research note on Monday, June 8th. Royal Bank Of Canada reduced their target price on Guidewire Software from $250.00 to $215.00 and set an "outperform" rating for the company in a report on Friday, June 5th. Weiss Ratings reissued a "hold (c)" rating on shares of Guidewire Software in a report on Wednesday, June 3rd. Finally, BTIG Research restated a "buy" rating and issued a $175.00 price objective on shares of Guidewire Software in a research report on Thursday, July 2nd. Eleven research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $224.42.

Guidewire Software Stock Up 6.3%

The company has a market cap of $12.44 billion, a PE ratio of 80.53 and a beta of 0.95. The stock has a 50-day moving average of $131.45 and a 200-day moving average of $144.14. The company has a quick ratio of 2.44, a current ratio of 2.44 and a debt-to-equity ratio of 0.51.

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

Insiders Place Their Bets

In other news, CAO David Franklin Peterson sold 246 shares of the stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $118.74, for a total value of $29,210.04. Following the transaction, the chief accounting officer owned 12,287 shares of the company's stock, valued at $1,458,958.38. This represents a 1.96% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 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. Also, CFO Jeffrey Elliott Cooper sold 1,348 shares of the stock in a transaction on Monday, June 22nd. The stock was sold at an average price of $105.67, for a total transaction of $142,443.16. Following the completion of the transaction, the chief financial officer directly owned 62,119 shares in the company, valued at $6,564,114.73. The trade was a 2.12% 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 sold a total of 31,393 shares of company stock valued at $3,960,558 over the last three months. Corporate insiders own 0.46% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the company. Measured Wealth Private Client Group LLC bought a new stake in Guidewire Software during the third quarter worth about $29,000. Advisors Asset Management Inc. bought a new position in shares of Guidewire Software during the 1st quarter valued at about $25,000. Flagship Harbor Advisors LLC bought a new position in shares of Guidewire Software during the 4th quarter valued at about $36,000. Leonteq Securities AG purchased a new position in shares of Guidewire Software during the 1st quarter valued at about $36,000. Finally, Bogart Wealth LLC raised its holdings in shares of Guidewire Software by 127.8% during the 1st quarter. Bogart Wealth LLC now owns 246 shares of the technology company's stock valued at $37,000 after buying 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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