Guidewire Software (NYSE:GWRE) Trading 9.6% Higher - Should You Buy?

Key Points

• Shares jumped 9.6% intraday to about $137.15 on Wednesday, though volume was light (632,056 shares vs. an average of 1.68M), after closing the prior session at $125.09.
• Guidewire beat quarterly estimates (EPS $1.17 vs. $0.77 expected; revenue $359.1M vs. $342.9M) with revenue up 24% year‑over‑year, and the board approved a $500 million share buyback (up to ~3.1% of shares).
• Analysts are generally positive (consensus rating: Moderate Buy) with a consensus price target of $249.85, though individual targets and ratings vary across firms.

Shares of Guidewire Software, Inc. (NYSE:GWRE - Get Free Report) traded up 9.6% during mid-day trading on Wednesday . The stock traded as high as $136.71 and last traded at $137.1490. 632,056 shares changed hands during trading, a decline of 62% from the average session volume of 1,682,174 shares. The stock had previously closed at $125.09.

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on the stock. Royal Bank Of Canada decreased their price target on shares of Guidewire Software from $300.00 to $250.00 and set an "outperform" rating for the company in a research note on Friday, March 6th. BTIG Research lifted their price objective on shares of Guidewire Software from $175.00 to $200.00 and gave the company a "buy" rating in a research note on Friday, March 6th. Weiss Ratings reiterated a "hold (c)" rating on shares of Guidewire Software in a research note on Thursday, January 22nd. Stifel Nicolaus reduced their price objective on shares of Guidewire Software from $300.00 to $250.00 and set a "buy" rating for the company in a research note on Friday, March 6th. Finally, Zacks Research upgraded shares of Guidewire Software from a "hold" rating to a "strong-buy" rating in a research note on Friday, March 13th. One analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $249.85.

Guidewire Software Price Performance

The firm has a market capitalization of $11.64 billion, a PE ratio of 62.52, a price-to-earnings-growth ratio of 5.36 and a beta of 1.05. 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 business's 50 day moving average is $142.77 and its two-hundred day moving average is $184.36.

Guidewire Software (NYSE:GWRE - Get Free Report) last released its quarterly earnings data on Thursday, March 5th. The technology company reported $1.17 earnings per share for the quarter, beating analysts' consensus estimates of $0.77 by $0.40. The business had revenue of $359.10 million during the quarter, compared to analyst estimates of $342.88 million. Guidewire Software had a net margin of 14.11% and a return on equity of 13.44%. Guidewire Software's revenue was up 24.0% compared to the same quarter last year. During the same period in the previous year, the business earned $0.51 EPS. Equities research analysts anticipate that Guidewire Software, Inc. will post 0.52 earnings per share for the current fiscal year.

Guidewire Software declared that its board has approved a stock buyback program on Thursday, January 8th that allows the company to buyback $500.00 million in shares. This buyback authorization allows the technology company to purchase up to 3.1% of its stock through open market purchases. Stock buyback programs are typically an indication that the company's leadership believes its shares are undervalued.

Insider Buying and Selling

In related news, CEO Michael George Rosenbaum sold 4,737 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 $776,204.82. Following the completion of the transaction, the chief executive officer directly owned 221,206 shares in the company, valued at $36,246,815.16. The trade was a 2.10% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, President John P. Mullen sold 6,576 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 value of $1,077,543.36. Following the transaction, the president owned 135,407 shares of the company's stock, valued at approximately $22,187,791.02. The trade was a 4.63% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 31,279 shares of company stock worth $4,887,686 over the last ninety days. 0.46% of the stock is owned by corporate insiders.

Institutional Trading of Guidewire Software

Hedge funds have recently made changes to their positions in the stock. Advisors Asset Management Inc. bought a new stake in shares of Guidewire Software during the 1st quarter worth $25,000. Root Financial Partners LLC bought a new stake in shares of Guidewire Software during the 3rd quarter worth $29,000. Measured Wealth Private Client Group LLC bought a new stake in shares of Guidewire Software during the 3rd quarter worth $29,000. Newbridge Financial Services Group Inc. bought a new stake in shares of Guidewire Software during the 2nd quarter worth $30,000. Finally, Cornerstone Planning Group LLC lifted its holdings 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 worth $34,000 after acquiring an additional 124 shares during the last quarter.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.