Guidewire Software Sees Unusually High Options Volume (NYSE:GWRE)

Key Points

• Guidewire Software experienced a significant increase in options trading with 1,297 call options acquired, marking an increase of approximately 1,563% compared to its typical volume.
• The company reported a 22.3% year-over-year revenue growth, achieving $356.57 million for the quarter and earnings per share of $0.84, beating estimates.
• Analysts have boosted price targets for Guidewire Software, with Oppenheimer raising their target from $275 to $300 and Goldman Sachs adjusting theirs from $270 to $305, indicating bullish sentiment on the stock.

Guidewire Software, Inc. (NYSE:GWRE - Get Free Report) was the recipient of unusually large options trading activity on Wednesday. Stock traders acquired 1,297 call options on the company. This is an increase of approximately 1,563% compared to the typical volume of 78 call options.

Guidewire Software Stock Down 0.2%

NYSE GWRE opened at $239.64 on Thursday. The company has a current ratio of 2.77, a quick ratio of 2.77 and a debt-to-equity ratio of 0.46. The stock's 50 day moving average is $230.05 and its two-hundred day moving average is $221.38. The company has a market capitalization of $20.26 billion, a price-to-earnings ratio of 299.55 and a beta of 1.21. Guidewire Software has a 1-year low of $165.08 and a 1-year high of $272.60.

Guidewire Software (NYSE:GWRE - Get Free Report) last released its quarterly earnings data on Thursday, September 4th. The technology company reported $0.84 earnings per share for the quarter, beating analysts' consensus estimates of $0.62 by $0.22. The company had revenue of $356.57 million for the quarter, compared to the consensus estimate of $337.82 million. Guidewire Software had a return on equity of 9.00% and a net margin of 5.81%.The company's quarterly revenue was up 22.3% on a year-over-year basis. During the same period in the previous year, the business earned $0.62 earnings per share. Guidewire Software has set its FY 2026 guidance at EPS. Q1 2026 guidance at EPS. Equities analysts forecast that Guidewire Software will post 0.52 earnings per share for the current fiscal year.

Insider Activity

In other Guidewire Software news, CAO David Franklin Peterson sold 1,811 shares of the business's stock in a transaction on Tuesday, September 16th. The shares were sold at an average price of $242.87, for a total transaction of $439,837.57. Following the completion of the transaction, the chief accounting officer owned 14,164 shares of the company's stock, valued at $3,440,010.68. The trade was a 11.34% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, President John P. Mullen sold 15,869 shares of the business's stock in a transaction on Tuesday, September 16th. The stock was sold at an average price of $242.87, for a total transaction of $3,854,104.03. Following the transaction, the president directly owned 158,958 shares of the company's stock, valued at approximately $38,606,129.46. This represents a 9.08% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 112,945 shares of company stock worth $27,077,616. Insiders own 0.48% of the company's stock.

Institutional Investors Weigh In On Guidewire Software

A number of institutional investors have recently added to or reduced their stakes in the stock. Empower Advisory Group LLC bought a new stake in Guidewire Software during the first quarter worth about $692,000. Praxis Investment Management Inc. bought a new stake in Guidewire Software during the first quarter worth about $347,000. Principal Financial Group Inc. grew its stake in Guidewire Software by 3,320.4% during the first quarter. Principal Financial Group Inc. now owns 192,843 shares of the technology company's stock worth $36,131,000 after buying an additional 187,205 shares during the last quarter. OMNI 360 Wealth Inc. bought a new stake in Guidewire Software during the first quarter worth about $211,000. Finally, International Assets Investment Management LLC bought a new stake in Guidewire Software during the first quarter worth about $217,000.

Analysts Set New Price Targets

Several research analysts have recently issued reports on GWRE shares. Oppenheimer boosted their price objective on shares of Guidewire Software from $275.00 to $300.00 and gave the stock an "outperform" rating in a report on Friday, September 5th. Royal Bank Of Canada boosted their price objective on shares of Guidewire Software from $290.00 to $300.00 and gave the stock an "outperform" rating in a report on Friday, September 5th. Wells Fargo & Company boosted their price objective on shares of Guidewire Software from $265.00 to $275.00 and gave the stock an "overweight" rating in a report on Friday, September 5th. Raymond James Financial restated an "outperform" rating and set a $275.00 price objective (up previously from $255.00) on shares of Guidewire Software in a report on Friday, September 5th. Finally, The Goldman Sachs Group boosted their price objective on shares of Guidewire Software from $270.00 to $305.00 and gave the stock a "buy" rating in a report on Friday, September 5th. Nine analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $274.08.

About Guidewire Software

Guidewire Software, Inc provides a platform for property and casualty (P&C) insurers worldwide. The company offers Guidewire InsuranceSuite Cloud, such as PolicyCenter Cloud, BillingCenter Cloud, and ClaimCenter Cloud applications. It also provides Guidewire InsuranceNow, a cloud-based platform that offers policy, billing, and claims management functionality to insurers; and Guidewire InsuranceSuite for Self-Managed.

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