Goosehead Insurance (NASDAQ:GSHD) Trading Down 7.7% - Here's What Happened

Key Points

• Goosehead Insurance shares fell 7.7% to about $57.51 in mid-day trading, on volume roughly 95% below the average daily level.
• The company exceeded quarterly EPS expectations, reporting $0.64 versus the $0.47 consensus, while revenue of $95.63 million missed estimates but increased 20.6% year over year.
• Analyst sentiment remains mixed but leans positive: the average rating is “Hold” with a $68.45 price target, while recent targets range from $60 to $76. Insiders sold more shares than they purchased over the quarter.

Goosehead Insurance (NASDAQ:GSHD - Get Free Report) shares traded down 7.7% during mid-day trading on Wednesday . The company traded as low as $58.51 and last traded at $57.5080. Approximately 24,123 shares were traded during mid-day trading, a decline of 95% from the average daily volume of 481,681 shares. The stock had previously closed at $62.32.

Wall Street Analysts Forecast Growth

GSHD has been the topic of several recent research reports. JPMorgan Chase & Co. raised their price target on shares of Goosehead Insurance from $55.00 to $60.00 and gave the company a "neutral" rating in a research report on Monday, July 13th. Keefe, Bruyette & Woods decreased their price objective on shares of Goosehead Insurance from $80.00 to $72.00 and set an "outperform" rating for the company in a report on Thursday, July 23rd. Piper Sandler boosted their target price on Goosehead Insurance from $52.00 to $72.00 and gave the company an "overweight" rating in a research note on Wednesday, July 15th. Weiss Ratings raised shares of Goosehead Insurance from a "hold (c-)" rating to a "hold (c)" rating in a research report on Friday. Finally, Cantor Fitzgerald reiterated an "overweight" rating and set a $76.00 price objective on shares of Goosehead Insurance in a research note on Thursday, July 23rd. Seven analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock has an average rating of "Hold" and an average target price of $68.45.

Goosehead Insurance Price Performance

The company has a 50 day simple moving average of $62.47 and a 200-day simple moving average of $49.71. The firm has a market cap of $2.05 billion, a PE ratio of 42.09, a price-to-earnings-growth ratio of 2.32 and a beta of 1.36.

Goosehead Insurance (NASDAQ:GSHD - Get Free Report) last posted its quarterly earnings results on Wednesday, July 22nd. The company reported $0.64 EPS for the quarter, topping the consensus estimate of $0.47 by $0.17. Goosehead Insurance had a net margin of 8.78% and a negative return on equity of 21.00%. The firm had revenue of $95.63 million for the quarter, compared to the consensus estimate of $103.30 million. During the same period last year, the firm posted $0.49 earnings per share. The business's revenue was up 20.6% compared to the same quarter last year. On average, sell-side analysts predict that Goosehead Insurance will post 1.46 EPS for the current fiscal year.

Insider Activity at Goosehead Insurance

In other Goosehead Insurance news, major shareholder & Robyn Jones Descendants Mark sold 125,000 shares of the firm's stock in a transaction on Wednesday, July 29th. The stock was sold at an average price of $69.71, for a total transaction of $8,713,750.00. Following the completion of the transaction, the insider owned 6,870,180 shares of the company's stock, valued at approximately $478,920,247.80. This trade represents a 1.79% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, major shareholder Durable Capital Partners Lp acquired 113,646 shares of the company's stock in a transaction that occurred on Friday, July 24th. The shares were acquired at an average cost of $58.34 per share, for a total transaction of $6,630,107.64. Following the purchase, the insider directly owned 2,493,927 shares of the company's stock, valued at $145,495,701.18. This represents a 4.77% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Over the last quarter, insiders have acquired 189,979 shares of company stock valued at $11,348,632 and have sold 267,000 shares valued at $18,056,139. 38.07% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Goosehead Insurance

Several institutional investors and hedge funds have recently modified their holdings of GSHD. Meixler Investment Management Ltd. boosted its stake in Goosehead Insurance by 5.3% during the 4th quarter. Meixler Investment Management Ltd. now owns 4,355 shares of the company's stock valued at $321,000 after purchasing an additional 220 shares during the last quarter. The Manufacturers Life Insurance Company raised its stake in shares of Goosehead Insurance by 2.2% in the second quarter. The Manufacturers Life Insurance Company now owns 12,022 shares of the company's stock worth $1,268,000 after purchasing an additional 259 shares during the last quarter. EverSource Wealth Advisors LLC lifted its holdings in shares of Goosehead Insurance by 480.4% during the second quarter. EverSource Wealth Advisors LLC now owns 325 shares of the company's stock valued at $34,000 after purchasing an additional 269 shares in the last quarter. Blair William & Co. IL boosted its position in shares of Goosehead Insurance by 5.0% during the fourth quarter. Blair William & Co. IL now owns 6,831 shares of the company's stock valued at $503,000 after buying an additional 323 shares during the last quarter. Finally, Mariner LLC boosted its position in shares of Goosehead Insurance by 10.1% during the fourth quarter. Mariner LLC now owns 3,700 shares of the company's stock valued at $273,000 after buying an additional 340 shares during the last quarter.

About Goosehead Insurance

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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