Goosehead Insurance (NASDAQ:GSHD) Shares Gap Down - What's Next?

Key Points

• Goosehead Insurance shares opened lower, falling from a prior close of $46.19 to $44.91 and last trading near $44.52.
• Analyst sentiment is mixed: JPMorgan and Piper Sandler cut their price targets and assigned neutral ratings, while Texas Capital upgraded the stock to strong buy. The overall consensus remains “Hold,” with a target price of $66.27.
• The company exceeded quarterly EPS expectations ($0.64 versus $0.47) and reported 20.6% year-over-year revenue growth, although revenue missed estimates. Recent insider activity was mixed, with significant purchases alongside stock sales.

Goosehead Insurance (NASDAQ:GSHD - Get Free Report) gapped down before the market opened on Tuesday. The stock had previously closed at $46.19, but opened at $44.91. Goosehead Insurance shares last traded at $44.5150, with a volume of 44,934 shares.

Analyst Ratings Changes

A number of analysts have recently commented on GSHD shares. JPMorgan Chase & Co. cut their price target on Goosehead Insurance from $68.00 to $60.00 and set a "neutral" rating on the stock in a report on Thursday, October 1st. Texas Capital upgraded Goosehead Insurance from a "hold" rating to a "strong-buy" rating in a report on Tuesday, September 29th. Piper Sandler cut Goosehead Insurance from an "overweight" rating to a "neutral" rating and cut their target price for the company from $72.00 to $48.00 in a research note on Tuesday. UBS Group upped their price target on Goosehead Insurance from $70.00 to $72.00 and gave the stock a "buy" rating in a research report on Monday, July 27th. Finally, Royal Bank Of Canada lifted their price objective on shares of Goosehead Insurance from $55.00 to $58.00 and gave the company a "sector perform" rating in a report on Thursday, July 23rd. One equities research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $66.27.

Goosehead Insurance Stock Performance

The company has a market cap of $1.58 billion, a P/E ratio of 32.49, a PEG ratio of 1.62 and a beta of 1.46. The company has a fifty day moving average price of $60.97 and a two-hundred day moving average price of $49.98.

Goosehead Insurance (NASDAQ:GSHD - Get Free Report) last released its earnings results on Wednesday, July 22nd. The company reported $0.64 earnings per share (EPS) 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 business had revenue of $95.63 million for the quarter, compared to analyst estimates of $103.30 million. During the same quarter in the prior year, the company posted $0.49 earnings per share. Goosehead Insurance's revenue was up 20.6% on a year-over-year basis. Research analysts anticipate that Goosehead Insurance will post 1.46 EPS for the current year.

Insider Buying and Selling

In other news, major shareholder & The Bear Irrevocable T. Chick sold 5,000 shares of the stock in a transaction that occurred on Tuesday, July 28th. The stock was sold at an average price of $65.03, for a total value of $325,150.00. Following the completion of the sale, the insider owned 58,530 shares of the company's stock, valued at approximately $3,806,205.90. This represents a 7.87% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, major shareholder Durable Capital Partners Lp bought 150,000 shares of the firm's stock in a transaction that occurred on Tuesday, September 22nd. The stock was purchased at an average cost of $47.32 per share, with a total value of $7,098,000.00. Following the completion of the purchase, the insider directly owned 2,720,260 shares of the company's stock, valued at $128,722,703.20. This represents a 5.84% increase in their position. The SEC filing for this purchase provides additional information. In the last quarter, insiders have purchased 339,979 shares of company stock worth $18,446,632 and have sold 267,000 shares worth $18,056,139. Corporate insiders own 38.07% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Versant Capital Management Inc grew its holdings in Goosehead Insurance by 36.9% during the third quarter. Versant Capital Management Inc now owns 1,057 shares of the company's stock worth $48,000 after purchasing an additional 285 shares during the period. Integrated Wealth Concepts LLC bought a new stake in Goosehead Insurance in the second quarter valued at approximately $48,000. Baird Financial Group Inc. lifted its position in shares of Goosehead Insurance by 15.6% in the second quarter. Baird Financial Group Inc. now owns 7,541 shares of the company's stock valued at $366,000 after buying an additional 1,016 shares during the last quarter. Nykredit A S acquired a new stake in shares of Goosehead Insurance in the second quarter valued at approximately $50,000. Finally, Corient Private Wealth LP boosted its stake in shares of Goosehead Insurance by 123.7% during the 2nd quarter. Corient Private Wealth LP now owns 56,935 shares of the company's stock worth $2,761,000 after acquiring an additional 31,483 shares during the period.

About Goosehead Insurance

Goosehead Insurance, Inc is an independent insurance agency and distribution company that helps individuals and businesses shop for insurance coverage from a broad network of insurance carriers. The company uses a technology-enabled platform to provide quoting, policy management and customer service through its corporate operations and franchise network.

Goosehead offers a range of personal and commercial insurance products, including homeowners, automobile, renters, flood, umbrella and life insurance, along with coverage designed for small businesses and other commercial customers.

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