Guidewire Software (NYSE:GWRE) Stock Breaks Below 50-Day Moving Average - Here's What Happened

Key Points

• Guidewire shares fell below their 50-day moving average, trading as low as $157.53 versus the average of $159.99; the stock last traded at $158.255.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $213.29. Recent target increases included Citigroup’s move to $181 and Guggenheim’s move to $210.
• In its latest reported quarter, Guidewire beat earnings and revenue estimates, posting EPS of $0.99 and revenue of $411.09 million; revenue rose 15.3% year over year.

Guidewire Software, Inc. (NYSE:GWRE - Get Free Report) shares crossed below its 50-day moving average during trading on Friday. The stock has a 50-day moving average of $159.99 and traded as low as $157.53. Guidewire Software shares last traded at $158.2550, with a volume of 421,214 shares trading hands.

Analyst Upgrades and Downgrades

GWRE has been the topic of a number of research analyst reports. Citigroup boosted their price target on shares of Guidewire Software from $137.00 to $181.00 and gave the company a "neutral" rating in a research note on Friday, September 4th. Jefferies Financial Group started coverage on shares of Guidewire Software in a research report on Wednesday. They set a "hold" rating and a $175.00 price objective for the company. Weiss Ratings reiterated a "hold (c)" rating on shares of Guidewire Software in a report on Monday, August 31st. Royal Bank Of Canada reiterated an "outperform" rating and issued a $215.00 target price on shares of Guidewire Software in a report on Friday, September 4th. Finally, Guggenheim boosted their target price on Guidewire Software from $180.00 to $210.00 and gave the company a "buy" rating in a research report on Thursday, August 27th. Twelve research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $213.29.

Guidewire Software Price Performance

The firm has a market cap of $13.08 billion, a price-to-earnings ratio of 97.09 and a beta of 1.01. The company has a quick ratio of 1.79, a current ratio of 1.79 and a debt-to-equity ratio of 0.57. The company's 50-day moving average price is $159.99 and its 200-day moving average price is $149.27.

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

Insiders Place Their Bets

In other news, CAO David Peterson sold 2,500 shares of the company's stock in a transaction on Thursday, August 27th. The stock was sold at an average price of $200.00, for a total transaction of $500,000.00. Following the sale, the chief accounting officer owned 9,787 shares of the company's stock, valued at approximately $1,957,400. This represents a 20.35% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Jeffrey Cooper sold 23,234 shares of the company's stock in a transaction on Thursday, September 17th. The stock was sold at an average price of $144.47, for a total value of $3,356,615.98. Following the sale, the chief financial officer directly owned 95,361 shares in the company, valued at $13,776,803.67. This represents a 19.59% decrease in their position. 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 quarter, insiders have sold 209,135 shares of company stock valued at $31,764,329. Corporate insiders own 0.50% of the company's stock.

Institutional Investors Weigh In On Guidewire Software

Large investors have recently bought and sold shares of the stock. Caxton Associates LLP purchased a new position in shares of Guidewire Software in the 3rd quarter valued at about $471,000. Buckland Partners Management Co LLC acquired a new position in shares of Guidewire Software during the third quarter worth about $228,000. First Trust Advisors LP increased its stake in shares of Guidewire Software by 15.2% during the third quarter. First Trust Advisors LP now owns 5,205 shares of the technology company's stock worth $742,000 after buying an additional 687 shares during the period. Whittier Trust Co. increased its stake in shares of Guidewire Software by 1.0% during the third quarter. Whittier Trust Co. now owns 70,166 shares of the technology company's stock worth $10,004,000 after buying an additional 704 shares during the period. Finally, Advisors Asset Management Inc. purchased a new stake in shares of Guidewire Software during the third quarter worth approximately $474,000.

About Guidewire Software

Guidewire Software develops software for property and casualty insurance companies. Its products support core insurance operations, including policy administration, billing and claims management, as well as data analytics and digital customer services. The company offers its applications through Guidewire Cloud and provides related implementation and support services. Its platform includes products such as PolicyCenter, BillingCenter and ClaimCenter, designed to help insurers manage workflows and modernize their technology systems.

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