Keefe, Bruyette & Woods Issues Pessimistic Forecast for Goosehead Insurance (NASDAQ:GSHD) Stock Price

Key Points

• Keefe, Bruyette & Woods cut its price target on Goosehead from $85 to $75 but kept an "outperform" rating, and that target (and the consensus ~$76.60) implies roughly a 65% upside from the stock's current ~$45 level.
• Recent quarterly results were mixed: Goosehead reported EPS of $0.64 (beating the $0.54 estimate) but revenue of $78.2M missed expectations of $99.7M, with a 7.62% net margin and a negative return on equity of 21.31%.
• Insider activity shows Director Louis Goldberg bought 5,575 shares at about $44.85, and company insiders collectively own roughly 48.35% of the stock.

Goosehead Insurance (NASDAQ:GSHD - Get Free Report) had its price target cut by equities researchers at Keefe, Bruyette & Woods from $85.00 to $75.00 in a research report issued to clients and investors on Tuesday,Benzinga reports. The brokerage currently has an "outperform" rating on the stock. Keefe, Bruyette & Woods' price target suggests a potential upside of 65.49% from the stock's current price.

A number of other equities research analysts have also issued reports on the company. UBS Group reduced their target price on Goosehead Insurance from $121.00 to $90.00 and set a "buy" rating on the stock in a research note on Monday, February 23rd. JPMorgan Chase & Co. decreased their price objective on Goosehead Insurance from $80.00 to $68.00 and set a "neutral" rating on the stock in a research note on Monday, February 23rd. BMO Capital Markets dropped their price objective on Goosehead Insurance from $79.00 to $55.00 and set a "market perform" rating for the company in a research report on Wednesday, February 18th. Cantor Fitzgerald set a $84.00 target price on shares of Goosehead Insurance in a research note on Monday, February 23rd. Finally, Wall Street Zen upgraded shares of Goosehead Insurance from a "sell" rating to a "hold" rating in a report on Saturday, February 7th. Seven equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $76.60.

Goosehead Insurance Stock Performance

NASDAQ GSHD traded up $0.83 during trading hours on Tuesday, reaching $45.32. The company's stock had a trading volume of 144,391 shares, compared to its average volume of 471,392. The company's 50-day moving average is $49.73 and its two-hundred day moving average is $64.04. Goosehead Insurance has a fifty-two week low of $40.00 and a fifty-two week high of $114.76. The stock has a market cap of $1.66 billion, a PE ratio of 43.58, a PEG ratio of 3.03 and a beta of 1.69.

Goosehead Insurance (NASDAQ:GSHD - Get Free Report) last announced its earnings results on Tuesday, February 17th. The company reported $0.64 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.54 by $0.10. The company had revenue of $78.20 million during the quarter, compared to analysts' expectations of $99.67 million. Goosehead Insurance had a net margin of 7.62% and a negative return on equity of 21.31%. The firm's quarterly revenue was up 12.1% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.79 earnings per share. Equities analysts expect that Goosehead Insurance will post 0.83 earnings per share for the current fiscal year.

Insider Activity

In other Goosehead Insurance news, Director Louis Goldberg acquired 5,575 shares of the stock in a transaction dated Friday, February 20th. The stock was acquired at an average price of $44.85 per share, with a total value of $250,038.75. Following the completion of the transaction, the director directly owned 5,575 shares in the company, valued at approximately $250,038.75. This trade represents a ∞ increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available at the SEC website. 48.35% of the stock is owned by company insiders.

Institutional Trading of Goosehead Insurance

Hedge funds have recently added to or reduced their stakes in the business. EverSource Wealth Advisors LLC increased its stake in shares of Goosehead Insurance by 480.4% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 325 shares of the company's stock valued at $34,000 after acquiring an additional 269 shares during the last quarter. Northwestern Mutual Wealth Management Co. grew its holdings in Goosehead Insurance by 802.0% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 442 shares of the company's stock valued at $47,000 after purchasing an additional 393 shares during the period. Kestra Advisory Services LLC purchased a new stake in Goosehead Insurance in the fourth quarter valued at approximately $41,000. Fifth Third Bancorp increased its position in Goosehead Insurance by 71.4% during the third quarter. Fifth Third Bancorp now owns 682 shares of the company's stock worth $51,000 after purchasing an additional 284 shares during the last quarter. Finally, Quadrant Capital Group LLC increased its position in Goosehead Insurance by 614.3% during the fourth quarter. Quadrant Capital Group LLC now owns 1,000 shares of the company's stock worth $74,000 after purchasing an additional 860 shares during the last quarter.

Goosehead Insurance Company Profile

Goosehead Insurance NASDAQ: GSHD is a technology-driven insurance agency that connects consumers with a broad range of personal and commercial insurance products through an extensive network of independent insurance advisors. The company specializes in homeowners, auto, flood, dwelling fire, umbrella, life, and commercial lines coverage, working with multiple national and regional carriers to offer tailored policies. By combining advanced quoting tools with local market expertise, Goosehead streamlines the insurance shopping process and helps clients find competitive coverage options.

Founded in 2003 and headquartered in Westlake, Texas, Goosehead has grown its footprint across more than 40 states in the U.S.

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