Guidewire Software's (GWRE) "Buy" Rating Reiterated at DA Davidson

Key Points

• DA Davidson reiterated a “Buy” rating on Guidewire Software and maintained a $246 price target, implying about 51% upside from the stock’s current price.
• Guidewire shares rose 6.5% to $162.52 on heavier-than-normal trading volume, while the stock remains well below its 52-week high of $272.60.
• The company recently beat expectations in its latest earnings report, posting $1.17 EPS on $359.1 million in revenue, with revenue up 24% year over year.

Guidewire Software (NYSE:GWRE - Get Free Report)'s stock had its "buy" rating reiterated by analysts at DA Davidson in a report issued on Tuesday,Benzinga reports. They currently have a $246.00 target price on the technology company's stock. DA Davidson's price target would indicate a potential upside of 51.37% from the company's current price.

Several other research analysts have also recently issued reports on GWRE. Zacks Research cut Guidewire Software from a "strong-buy" rating to a "hold" rating in a research report on Monday, May 25th. Wells Fargo & Company reduced their price objective on Guidewire Software from $250.00 to $210.00 and set an "overweight" rating for the company in a research note on Wednesday, February 4th. BTIG Research reiterated a "buy" rating and set a $200.00 target price on shares of Guidewire Software in a research report on Tuesday. Oppenheimer dropped their target price on Guidewire Software from $250.00 to $180.00 and set an "outperform" rating on the stock in a research report on Monday, May 18th. Finally, Royal Bank Of Canada dropped their target price on Guidewire Software from $300.00 to $250.00 and set an "outperform" rating on the stock in a research report on Friday, March 6th. Eleven 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. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $244.46.

Guidewire Software Trading Up 6.5%

GWRE traded up $9.85 during mid-day trading on Tuesday, hitting $162.52. 2,628,093 shares of the stock were exchanged, compared to its average volume of 1,301,634. Guidewire Software has a 1-year low of $115.57 and a 1-year high of $272.60. The company has a market cap of $13.76 billion, a PE ratio of 75.20 and a beta of 0.93. The company has a current ratio of 2.93, a quick ratio of 2.93 and a debt-to-equity ratio of 0.45. The firm's fifty day moving average is $140.20 and its two-hundred day moving average is $162.43.

Guidewire Software (NYSE:GWRE - Get Free Report) last released its earnings results on Thursday, March 5th. The technology company reported $1.17 EPS for the quarter, topping the consensus estimate of $0.77 by $0.40. Guidewire Software had a return on equity of 13.44% and a net margin of 14.11%.The firm had revenue of $359.10 million during the quarter, compared to analysts' expectations of $342.88 million. During the same period in the previous year, the firm posted $0.51 EPS. Guidewire Software's revenue for the quarter was up 24.0% on a year-over-year basis. Equities analysts forecast that Guidewire Software will post 1.84 earnings per share for the current fiscal year.

Insider Transactions at Guidewire Software

In other Guidewire Software news, CAO David Franklin Peterson sold 273 shares of Guidewire Software stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $163.86, for a total value of $44,733.78. Following the completion of the transaction, the chief accounting officer directly owned 12,533 shares in the company, valued at $2,053,657.38. The trade was a 2.13% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Michael George Rosenbaum sold 1,200 shares of Guidewire Software stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $138.51, for a total value of $166,212.00. Following the completion of the transaction, the chief executive officer owned 209,206 shares of the company's stock, valued at approximately $28,977,123.06. The trade was a 0.57% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 32,479 shares of company stock worth $5,024,174. Corporate 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 stake in Guidewire Software during the first quarter valued at about $25,000. Measured Wealth Private Client Group LLC acquired a new position in Guidewire Software in the third quarter worth about $29,000. Cornerstone Planning Group LLC increased its holdings in shares of Guidewire Software by 620.0% during the third quarter. Cornerstone Planning Group LLC now owns 144 shares of the technology company's stock worth $34,000 after buying an additional 124 shares in the last quarter. Hazlett Burt & Watson Inc. acquired a new stake in shares of Guidewire Software during the third quarter worth approximately $35,000. Finally, Flagship Harbor Advisors LLC acquired a new stake in shares of Guidewire Software during the fourth quarter worth approximately $36,000.

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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