Guidewire Software (NYSE:GWRE) Stock Rating Lowered by Zacks Research

Key Points

• Zacks Research downgraded Guidewire Software (NYSE:GWRE) from “strong-buy” to “hold” and now expects Q2 2027 earnings of $0.66 per share.
• Despite the downgrade, Wall Street remains mostly positive: 11 analysts rate the stock a Buy, with consensus rating at “Moderate Buy” and an average price target of $244.46.
• Guidewire recently beat quarterly expectations, posting $1.17 EPS versus $0.77 expected and revenue of $359.1 million, up 24% year over year.

Guidewire Software (NYSE:GWRE - Get Free Report) was downgraded by analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a report issued on Monday,Zacks.com reports. Zacks Research also issued estimates for Guidewire Software's Q2 2027 earnings at $0.66 EPS.

Several other equities analysts have also recently issued reports on the stock. Oppenheimer lowered their target price on shares of Guidewire Software from $250.00 to $180.00 and set an "outperform" rating on the stock in a research note on Monday, May 18th. Stifel Nicolaus reduced their price target on shares of Guidewire Software from $300.00 to $250.00 and set a "buy" rating for the company in a research report on Friday, March 6th. DA Davidson reaffirmed a "buy" rating and set a $246.00 price target on shares of Guidewire Software in a research report on Tuesday, March 10th. BTIG Research upped their price target on shares of Guidewire Software from $175.00 to $200.00 and gave the company a "buy" rating in a research report on Friday, March 6th. Finally, Wells Fargo & Company reduced their price target on shares of Guidewire Software from $250.00 to $210.00 and set an "overweight" rating for the company in a research report on Wednesday, February 4th. Eleven equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, Guidewire Software has a consensus rating of "Moderate Buy" and a consensus price target of $244.46.

Guidewire Software Price Performance

GWRE opened at $137.55 on Monday. The company has a debt-to-equity ratio of 0.45, a quick ratio of 2.93 and a current ratio of 2.93. The stock has a market capitalization of $11.64 billion, a P/E ratio of 62.52 and a beta of 0.91. The company's 50-day simple moving average is $141.00 and its two-hundred day simple moving average is $164.33. Guidewire Software has a 52-week low of $115.57 and a 52-week high of $272.60.

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. The business had revenue of $359.10 million for the quarter, compared to analysts' expectations of $342.88 million. Guidewire Software had a net margin of 14.11% and a return on equity of 13.44%. The business's revenue for the quarter was up 24.0% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.51 EPS. As a group, analysts predict that Guidewire Software will post 1.84 EPS for the current year.

Insider Activity

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

Institutional Investors Weigh In On Guidewire Software

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Advisors Asset Management Inc. bought a new position in Guidewire Software in the 1st quarter worth approximately $25,000. Root Financial Partners LLC bought a new position in shares of Guidewire Software during the 3rd quarter valued at approximately $29,000. Measured Wealth Private Client Group LLC bought a new position in shares of Guidewire Software during the 3rd quarter valued at approximately $29,000. Cornerstone Planning Group LLC boosted its position in shares of Guidewire Software by 620.0% during the 3rd quarter. Cornerstone Planning Group LLC now owns 144 shares of the technology company's stock valued at $34,000 after acquiring an additional 124 shares during the last quarter. Finally, Hazlett Burt & Watson Inc. bought a new position in shares of Guidewire Software during the 3rd quarter valued at approximately $35,000.

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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