Piper Sandler Begins Coverage on Guidewire Software (NYSE:GWRE)

Key Points

• Piper Sandler initiated coverage of Guidewire Software with an “overweight” rating and a $210 price target, implying 22.78% upside from the stock’s reported $171.04 price.
• Analyst sentiment remains positive overall, with a consensus “Moderate Buy” rating and an average price target of $220.21, despite several firms recently lowering their targets.
• Guidewire exceeded quarterly expectations, reporting $0.82 in EPS versus $0.74 expected and $372.54 million in revenue, up 26.9% year over year; insiders, however, sold 28,993 shares worth approximately $3.65 million over the past three months.

Piper Sandler initiated coverage on shares of Guidewire Software (NYSE:GWRE - Get Free Report) in a research note issued on Monday,Benzinga reports. The firm set an "overweight" rating and a $210.00 price target on the technology company's stock. Piper Sandler's price objective suggests a potential upside of 22.78% from the company's current price.

GWRE has been the subject of several other research reports. Weiss Ratings reissued a "hold (c)" rating on shares of Guidewire Software in a report on Wednesday, June 3rd. Stifel Nicolaus dropped their target price on shares of Guidewire Software from $225.00 to $200.00 and set a "buy" rating on the stock in a research report on Friday, June 5th. The Goldman Sachs Group lowered their price objective on shares of Guidewire Software from $255.00 to $225.00 and set a "buy" rating for the company in a research note on Friday, June 5th. JPMorgan Chase & Co. lowered their price target on Guidewire Software from $300.00 to $258.00 and set an "overweight" rating for the company in a research report on Tuesday, July 14th. Finally, BTIG Research reissued a "buy" rating and issued a $175.00 price objective on shares of Guidewire Software in a report on Thursday, July 2nd. One analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $220.21.

Guidewire Software Price Performance

Shares of GWRE opened at $171.04 on Monday. The company has a 50 day moving average of $136.70 and a two-hundred day moving average of $140.20. The company has a quick ratio of 2.44, a current ratio of 2.44 and a debt-to-equity ratio of 0.51. Guidewire Software has a twelve month low of $102.30 and a twelve month high of $272.60. The company has a market cap of $14.24 billion, a price-to-earnings ratio of 92.45 and a beta of 0.92.

Guidewire Software (NYSE:GWRE - Get Free Report) last issued its quarterly earnings data on Thursday, June 4th. The technology company reported $0.82 EPS for the quarter, beating the consensus estimate of $0.74 by $0.08. Guidewire Software had a return on equity of 12.62% and a net margin of 11.25%.The firm had revenue of $372.54 million during the quarter, compared to analyst estimates of $355.92 million. During the same quarter in the prior year, the business posted $0.88 EPS. The business's revenue for the quarter was up 26.9% compared to the same quarter last year. As a group, analysts predict that Guidewire Software will post 1.83 earnings per share for the current fiscal year.

Insider Buying and Selling at Guidewire Software

In other news, insider James Winston King sold 1,684 shares of the business's stock in a transaction dated Thursday, July 9th. The stock was sold at an average price of $130.64, for a total value of $219,997.76. Following the completion of the transaction, the insider owned 30,018 shares of the company's stock, valued at $3,921,551.52. The trade was a 5.31% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, President John P. Mullen sold 4,292 shares of the company's stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $118.74, for a total value of $509,632.08. Following the completion of the sale, the president owned 131,115 shares in the company, valued at $15,568,595.10. The trade was a 3.17% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders sold 28,993 shares of company stock worth $3,651,078. 0.46% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Guidewire Software

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. American Trust grew its stake in shares of Guidewire Software by 3.9% in the third quarter. American Trust now owns 1,632 shares of the technology company's stock valued at $375,000 after buying an additional 61 shares in the last quarter. Vident Advisory LLC boosted its holdings in Guidewire Software by 1.7% during the 3rd quarter. Vident Advisory LLC now owns 4,074 shares of the technology company's stock valued at $936,000 after acquiring an additional 70 shares during the period. Mirae Asset Global Investments Co. Ltd. increased its stake in Guidewire Software by 18.3% during the fourth quarter. Mirae Asset Global Investments Co. Ltd. now owns 505 shares of the technology company's stock worth $102,000 after purchasing an additional 78 shares during the period. Castleark Management LLC lifted its position in shares of Guidewire Software by 1.6% during the first quarter. Castleark Management LLC now owns 5,180 shares of the technology company's stock worth $775,000 after purchasing an additional 80 shares in the last quarter. Finally, Cassaday & Co Wealth Management LLC boosted its stake in shares of Guidewire Software by 9.9% in the fourth quarter. Cassaday & Co Wealth Management LLC now owns 1,085 shares of the technology company's stock valued at $218,000 after purchasing an additional 98 shares during the period.

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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