Goosehead Insurance (NASDAQ:GSHD) Shares Climb 7.2% - What's Next?

Key Points

• Goosehead Insurance shares rose 7.2% to $48.5650, although trading volume was 63% below the stock’s average daily volume.
• Analyst views remain mixed: the consensus rating is “Hold” with a $64.42 price target. Recent targets ranged from $48 to $72, with Truist cutting its target while UBS raised its rating and target.
• The company’s latest quarterly results beat earnings expectations, reporting $0.64 EPS versus the $0.47 consensus, while revenue increased 20.6% year over year but fell short of estimates. Insiders sold shares recently, though institutional investors including Wasatch Advisors and Janus Henderson increased their positions.

Goosehead Insurance (NASDAQ:GSHD - Get Free Report)'s stock price shot up 7.2% during trading on Thursday. The company traded as high as $47.73 and last traded at $48.5650. 181,241 shares changed hands during trading, a decline of 63% from the average daily volume of 483,910 shares. The stock had previously closed at $45.32.

Analysts Set New Price Targets

A number of equities analysts have weighed in on the stock. Truist Financial dropped their target price on shares of Goosehead Insurance from $58.00 to $48.00 and set a "hold" rating for the company in a research note on Tuesday, October 13th. Citigroup reissued a "market outperform" rating on shares of Goosehead Insurance in a research note on Monday, October 12th. Royal Bank Of Canada increased their price target on shares of Goosehead Insurance from $55.00 to $58.00 and gave the company a "sector perform" rating in a research note on Thursday, July 23rd. UBS Group raised their price target on shares of Goosehead Insurance from $70.00 to $72.00 and gave the company a "buy" rating in a report on Monday, July 27th. Finally, Keefe, Bruyette & Woods dropped their price objective on shares of Goosehead Insurance from $72.00 to $66.00 and set an "outperform" rating for the company in a research report on Monday, October 12th. One investment analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus price target of $64.42.

Goosehead Insurance Price Performance

The stock has a 50-day moving average of $55.87 and a 200 day moving average of $50.18. The stock has a market capitalization of $1.80 billion, a price-to-earnings ratio of 36.95, a price-to-earnings-growth ratio of 1.77 and a beta of 1.46.

Goosehead Insurance (NASDAQ:GSHD - Get Free Report) last announced its quarterly earnings data on Wednesday, July 22nd. The company reported $0.64 earnings per share for the quarter, topping the consensus estimate of $0.47 by $0.17. Goosehead Insurance had a negative return on equity of 21.00% and a net margin of 8.78%. The firm had revenue of $95.63 million during the quarter, compared to analysts' expectations of $103.30 million. During the same period in the previous year, the business posted $0.49 EPS. The company's quarterly revenue was up 20.6% compared to the same quarter last year. Sell-side analysts anticipate that Goosehead Insurance will post 1.45 earnings per share for the current fiscal year.

Insider Buying and Selling at Goosehead Insurance

In related news, major shareholder & Robyn Jones Descendants Mark sold 125,000 shares of the stock in a transaction that occurred on Wednesday, July 29th. The shares were sold at an average price of $69.71, for a total value of $8,713,750.00. Following the transaction, the insider directly owned 6,870,180 shares in the company, valued at $478,920,247.80. This represents a 1.79% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, major shareholder & The Bear Irrevocable T. Chick sold 5,000 shares of the stock in a transaction that occurred on Tuesday, July 28th. The shares were sold at an average price of $65.03, for a total transaction of $325,150.00. Following the completion of the transaction, the insider owned 58,530 shares in the company, valued at $3,806,205.90. This represents a 7.87% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders purchased 339,979 shares of company stock worth $18,446,632 and sold 267,000 shares worth $18,056,139. 38.07% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Goosehead Insurance

A number of hedge funds and other institutional investors have recently bought and sold shares of GSHD. Wasatch Advisors LP raised its position in shares of Goosehead Insurance by 32.3% during the 1st quarter. Wasatch Advisors LP now owns 2,292,227 shares of the company's stock valued at $97,786,000 after acquiring an additional 559,087 shares during the last quarter. Janus Henderson Group PLC boosted its position in shares of Goosehead Insurance by 3,485.1% in the 1st quarter. Janus Henderson Group PLC now owns 386,906 shares of the company's stock worth $16,506,000 after purchasing an additional 376,114 shares during the last quarter. Bank of America Corp DE boosted its position in shares of Goosehead Insurance by 28.2% in the 1st quarter. Bank of America Corp DE now owns 329,333 shares of the company's stock worth $14,049,000 after purchasing an additional 72,527 shares during the last quarter. Principal Financial Group Inc. boosted its position in shares of Goosehead Insurance by 23.2% in the 1st quarter. Principal Financial Group Inc. now owns 219,745 shares of the company's stock worth $9,374,000 after purchasing an additional 41,334 shares during the last quarter. Finally, Sei Investments Co. grew its stake in shares of Goosehead Insurance by 9.4% during the first quarter. Sei Investments Co. now owns 163,452 shares of the company's stock worth $6,973,000 after purchasing an additional 14,051 shares during the period.

Goosehead Insurance Company Profile

Goosehead Insurance, Inc is an independent insurance agency that distributes personal and commercial insurance products through a network of corporate and franchise locations. The company uses technology and relationships with multiple insurance carriers to help customers compare coverage options and select policies suited to their needs.

Its offerings primarily include homeowners, automobile, renters, flood, umbrella and other personal insurance products, along with selected commercial insurance solutions.

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