Guidewire Software (NYSE:GWRE) Shares Up 7.4% - Here's Why

Key Points

• Guidewire Software shares rose 7.4% to approximately $177.14 in midday trading, despite volume running 70% below the average session level.
• Analysts maintain a broadly positive outlook, with 12 Buy ratings and four Holds producing a “Moderate Buy” consensus and an average price target of $216.23.
• The company recently exceeded quarterly expectations, reporting $0.99 EPS versus $0.93 expected and $411.09 million in revenue versus $402.61 million expected; revenue increased 15.3% year over year.

Shares of Guidewire Software, Inc. (NYSE:GWRE - Get Free Report) rose 7.4% during mid-day trading on Thursday. The stock traded as high as $176.97 and last traded at $177.1410. 461,186 shares traded hands during trading, a decline of 70% from the average session volume of 1,549,531 shares. The stock had previously closed at $164.92.

Analysts Set New Price Targets

A number of equities analysts recently weighed in on GWRE shares. Royal Bank Of Canada restated an "outperform" rating and issued a $215.00 price objective on shares of Guidewire Software in a report on Friday, September 4th. Piper Sandler reissued an "overweight" rating and issued a $210.00 target price on shares of Guidewire Software in a report on Friday, September 4th. Citizens Jmp restated a "market outperform" rating and issued a $220.00 price target on shares of Guidewire Software in a research note on Friday, September 4th. Needham & Company LLC restated a "hold" rating on shares of Guidewire Software in a research note on Friday, September 4th. Finally, Weiss Ratings reaffirmed a "hold (c)" rating on shares of Guidewire Software in a report on Monday, August 31st. Twelve equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $216.23.

Guidewire Software Price Performance

The company has a market capitalization of $14.64 billion, a P/E ratio of 107.74 and a beta of 1.02. The company has a debt-to-equity ratio of 0.57, a current ratio of 1.79 and a quick ratio of 1.79. The firm's 50-day moving average is $166.68 and its 200-day moving average is $147.27.

Guidewire Software (NYSE:GWRE - Get Free Report) last issued its quarterly earnings results on Thursday, September 3rd. The technology company reported $0.99 earnings per share for the quarter, topping the consensus estimate of $0.93 by $0.06. The business had revenue of $411.09 million for the quarter, compared to analysts' expectations of $402.61 million. Guidewire Software had a net margin of 9.44% and a return on equity of 12.66%. The company's revenue was up 15.3% compared to the same quarter last year. During the same quarter last year, the company posted $0.84 EPS. Analysts predict that Guidewire Software, Inc. will post 2.45 EPS for the current fiscal year.

Insider Activity

In other Guidewire Software news, CAO David Peterson sold 1,905 shares of the firm's stock in a transaction dated Thursday, September 17th. The stock was sold at an average price of $144.47, for a total transaction of $275,215.35. Following the sale, the chief accounting officer directly owned 12,233 shares of the company's stock, valued at $1,767,301.51. This trade represents a 13.47% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Jeffrey Cooper sold 9,941 shares of the firm's stock in a transaction dated Friday, September 18th. The shares were sold at an average price of $142.61, for a total value of $1,417,686.01. Following the sale, the chief financial officer directly owned 85,420 shares in the company, valued at approximately $12,181,746.20. This represents a 10.42% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders sold 200,735 shares of company stock valued at $30,179,843. 0.46% of the stock is owned by insiders.

Institutional Trading of Guidewire Software

Several institutional investors have recently made changes to their positions in the business. Fort Washington Investment Advisors Inc. OH bought a new stake in Guidewire Software in the third quarter worth $333,000. Wedmont Private Capital increased its stake in Guidewire Software by 83.2% during the third quarter. Wedmont Private Capital now owns 3,248 shares of the technology company's stock worth $463,000 after acquiring an additional 1,475 shares during the last quarter. GAMMA Investing LLC increased its position in shares of Guidewire Software by 49.0% during the 3rd quarter. GAMMA Investing LLC now owns 4,129 shares of the technology company's stock valued at $589,000 after purchasing an additional 1,357 shares during the last quarter. Farther Finance Advisors LLC raised its holdings in Guidewire Software by 70.4% during the 3rd quarter. Farther Finance Advisors LLC now owns 4,210 shares of the technology company's stock valued at $600,000 after buying an additional 1,739 shares during the period. Finally, Elevation Wealth Partners LLC raised its holdings in Guidewire Software by 63.1% during the 3rd quarter. Elevation Wealth Partners LLC now owns 747 shares of the technology company's stock valued at $107,000 after buying an additional 289 shares during the period.

Guidewire Software Company Profile

Guidewire Software, Inc develops software for the property and casualty (P&C) insurance industry. Its platform is designed to help insurers manage core operations, modernize legacy systems, and support digital interactions with policyholders, agents, brokers, and other stakeholders.

The company's principal offerings include Guidewire InsuranceSuite, a cloud-based platform with applications such as PolicyCenter for policy administration, BillingCenter for billing and payments, and ClaimCenter for claims management.

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