Insider Selling: Guidewire Software (NYSE:GWRE) CEO Sells 1,200 Shares of Stock

Key Points

• CEO Michael George Rosenbaum sold 1,200 shares on March 9 at an average price of $166.34 for about $199,608, leaving him with 227,143 shares (a 0.53% reduction in his stake).
• The trade continues a string of recent insider sales by Rosenbaum (multiple 1,200-share sales plus larger disposals since December), suggesting an ongoing pattern of insider selling.
• Separately, Guidewire posted strong quarterly results—beating EPS and revenue estimates with revenue up 24% year-over-year—and its board approved a $500 million share buyback program.

Guidewire Software, Inc. (NYSE:GWRE - Get Free Report) CEO Michael George Rosenbaum sold 1,200 shares of the company's stock in a transaction on Monday, March 9th. The shares were sold at an average price of $166.34, for a total value of $199,608.00. Following the transaction, the chief executive officer directly owned 227,143 shares in the company, valued at approximately $37,782,966.62. The trade was a 0.53% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link.

Michael George Rosenbaum also recently made the following trade(s):

• On Monday, February 23rd, Michael George Rosenbaum sold 1,200 shares of Guidewire Software stock. The shares were sold at an average price of $125.50, for a total value of $150,600.00.
• On Tuesday, February 17th, Michael George Rosenbaum sold 1,200 shares of Guidewire Software stock. The stock was sold at an average price of $127.00, for a total value of $152,400.00.
• On Monday, February 2nd, Michael George Rosenbaum sold 1,200 shares of Guidewire Software stock. The stock was sold at an average price of $140.01, for a total value of $168,012.00.
• On Monday, January 26th, Michael George Rosenbaum sold 1,200 shares of Guidewire Software stock. The shares were sold at an average price of $160.32, for a total transaction of $192,384.00.
• On Tuesday, January 20th, Michael George Rosenbaum sold 1,200 shares of Guidewire Software stock. The shares were sold at an average price of $156.26, for a total transaction of $187,512.00.
• On Tuesday, January 13th, Michael George Rosenbaum sold 1,200 shares of Guidewire Software stock. The stock was sold at an average price of $180.87, for a total transaction of $217,044.00.
• On Monday, December 29th, Michael George Rosenbaum sold 1,400 shares of Guidewire Software stock. The shares were sold at an average price of $204.95, for a total transaction of $286,930.00.
• On Monday, December 22nd, Michael George Rosenbaum sold 1,400 shares of Guidewire Software stock. The shares were sold at an average price of $200.72, for a total transaction of $281,008.00.
• On Tuesday, December 16th, Michael George Rosenbaum sold 6,015 shares of Guidewire Software stock. The stock was sold at an average price of $192.08, for a total transaction of $1,155,361.20.
• On Monday, December 15th, Michael George Rosenbaum sold 1,400 shares of Guidewire Software stock. The stock was sold at an average price of $204.34, for a total transaction of $286,076.00.

Guidewire Software Stock Performance

NYSE:GWRE traded down $5.39 during trading hours on Monday, reaching $163.48. The company had a trading volume of 1,682,173 shares, compared to its average volume of 2,009,074. The firm has a market cap of $13.90 billion, a price-to-earnings ratio of 74.31, a PEG ratio of 10.88 and a beta of 1.05. The company has a current ratio of 2.93, a quick ratio of 3.48 and a debt-to-equity ratio of 0.45. The firm's 50 day moving average price is $153.90 and its 200-day moving average price is $200.38. Guidewire Software, Inc. has a 52 week low of $120.37 and a 52 week high of $272.60.

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

Guidewire Software announced that its board has approved a stock buyback plan on Thursday, January 8th that allows the company to buyback $500.00 million in shares. This buyback authorization allows the technology company to buy up to 3.1% of its shares through open market purchases. Shares buyback plans are generally a sign that the company's leadership believes its shares are undervalued.

Wall Street Analysts Forecast Growth

A number of analysts have commented on GWRE shares. Stifel Nicolaus reduced their target price on shares of Guidewire Software from $300.00 to $250.00 and set a "buy" rating for the company in a report on Friday. Weiss Ratings reiterated a "hold (c)" rating on shares of Guidewire Software in a research note on Thursday, January 22nd. BTIG Research boosted their price objective on shares of Guidewire Software from $175.00 to $200.00 and gave the company a "buy" rating in a research report on Friday. Oppenheimer reduced their price objective on Guidewire Software from $300.00 to $250.00 and set an "outperform" rating for the company in a research note on Tuesday, February 24th. Finally, Wells Fargo & Company lowered their target price on Guidewire Software from $250.00 to $210.00 and set an "overweight" rating on the stock 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 issued a Sell rating to the company. According to data from MarketBeat, Guidewire Software has an average rating of "Moderate Buy" and a consensus price target of $250.15.

Hedge Funds Weigh In On Guidewire Software

Hedge funds have recently modified their holdings of the company. Vanguard Group Inc. raised its position in shares of Guidewire Software by 1.3% during the 3rd quarter. Vanguard Group Inc. now owns 9,039,377 shares of the technology company's stock valued at $2,077,791,000 after purchasing an additional 116,726 shares during the period. Geode Capital Management LLC boosted its holdings in Guidewire Software by 8.9% in the 4th quarter. Geode Capital Management LLC now owns 1,778,201 shares of the technology company's stock worth $357,504,000 after buying an additional 145,924 shares during the period. Stockbridge Partners LLC boosted its holdings in Guidewire Software by 39.0% in the 4th quarter. Stockbridge Partners LLC now owns 1,445,206 shares of the technology company's stock worth $290,501,000 after buying an additional 405,850 shares during the period. AQR Capital Management LLC increased its stake in Guidewire Software by 3.6% in the 4th quarter. AQR Capital Management LLC now owns 1,316,817 shares of the technology company's stock worth $264,693,000 after buying an additional 45,289 shares in the last quarter. Finally, Capital World Investors purchased a new stake in Guidewire Software in the 4th quarter worth $202,405,000.

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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