Guidewire Software (NYSE:GWRE) Stock Price Down 5.4% on Insider Selling

Key Points

• Guidewire Software shares fell 5.4% to about $174 after CEO Michael Rosenbaum sold 1,200 shares worth $224,628 under a pre-arranged Rule 10b5-1 trading plan. Trading volume was 82% below average.
• Wall Street remains broadly positive, with 12 analysts rating GWRE a Buy and four a Hold; the consensus rating is “Moderate Buy” with a $216.23 price target.
• Guidewire’s latest quarter exceeded expectations, reporting $0.99 in EPS and $411.09 million in revenue, with revenue up 15.3% year over year.

Guidewire Software, Inc. (NYSE:GWRE - Get Free Report)'s share price fell 5.4% on Tuesday after an insider sold shares in the company. The stock traded as low as $174.78 and last traded at $174.0690. 273,818 shares traded hands during trading, a decline of 82% from the average session volume of 1,534,000 shares. The stock had previously closed at $183.96.

Specifically, CEO Michael Rosenbaum sold 1,200 shares of the firm's stock in a transaction that occurred on Monday, October 26th. The stock was sold at an average price of $187.19, for a total value of $224,628.00. Following the completion of the transaction, the chief executive officer directly owned 273,666 shares in the company, valued at $51,227,538.54. This trade represents a 0.44% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on GWRE shares. DA Davidson reiterated a "buy" rating and set a $222.00 price target on shares of Guidewire Software in a report on Friday, October 2nd. Piper Sandler restated an "overweight" rating and issued a $210.00 price target on shares of Guidewire Software in a research note on Friday, September 4th. BTIG Research increased their target price on shares of Guidewire Software from $175.00 to $230.00 and gave the stock a "buy" rating in a research report on Wednesday, September 2nd. Needham & Company LLC reiterated a "hold" rating on shares of Guidewire Software in a research note on Friday, September 4th. Finally, Citigroup raised their price objective on Guidewire Software from $137.00 to $181.00 and gave the stock a "neutral" rating in a research note on Friday, September 4th. Twelve analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $216.23.

Guidewire Software Price Performance

The business's fifty day moving average price is $168.08 and its 200 day moving average price is $149.72. 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 stock has a market cap of $14.49 billion, a P/E ratio of 106.22 and a beta of 1.02.

Guidewire Software (NYSE:GWRE - Get Free Report) last issued 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. Guidewire Software had a net margin of 9.44% and a return on equity of 12.66%. The business had revenue of $411.09 million during the quarter, compared to the consensus estimate of $402.61 million. During the same quarter in the prior year, the firm earned $0.84 EPS. The firm's revenue was up 15.3% compared to the same quarter last year. Sell-side analysts forecast that Guidewire Software, Inc. will post 2.45 EPS for the current fiscal year.

Hedge Funds Weigh In On Guidewire Software

A number of hedge funds have recently made changes to their positions in GWRE. Fiduciary Financial Advisors bought a new stake in Guidewire Software in the second quarter valued at approximately $29,000. Silvant Capital Management LLC bought a new position in Guidewire Software during the second quarter worth $33,000. Leonteq Securities AG bought a new position in Guidewire Software during the first quarter worth $36,000. Bogart Wealth LLC lifted its holdings in Guidewire Software by 127.8% in the first quarter. Bogart Wealth LLC now owns 246 shares of the technology company's stock valued at $37,000 after buying an additional 138 shares during the period. Finally, IFP Advisors Inc lifted its holdings in Guidewire Software by 129.2% in the third quarter. IFP Advisors Inc now owns 330 shares of the technology company's stock valued at $47,000 after buying an additional 186 shares during the period.

About Guidewire Software

Guidewire Software, Inc provides cloud-based software designed for the property and casualty insurance industry. Its platform helps insurers manage core operations, including policy administration, billing, claims management, underwriting, and digital customer engagement.

The company's principal offerings include InsuranceSuite, which incorporates PolicyCenter, BillingCenter, and ClaimCenter, as well as products for insurance data management, analytics, digital experiences, and application development.

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