Guidewire Software (NYSE:GWRE) Trading 6.8% Higher - Still a Buy?

Key Points

• Guidewire shares rose 6.8% to about $150.44 in mid-day trading, though volume was 67% below the average daily level.
• Analyst sentiment remains positive: 12 analysts rate the stock a Buy and four a Hold, producing a consensus “Moderate Buy” rating and an average price target of $216.23.
• Guidewire exceeded quarterly expectations, reporting adjusted EPS of $0.99 versus $0.93 expected and revenue of $411.09 million, up 15.3% year over year.

Guidewire Software, Inc. (NYSE:GWRE - Get Free Report)'s stock price rose 6.8% during mid-day trading on Monday . The company traded as high as $149.62 and last traded at $150.4430. Approximately 517,550 shares traded hands during mid-day trading, a decline of 67% from the average daily volume of 1,591,891 shares. The stock had previously closed at $140.92.

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on GWRE shares. Weiss Ratings restated a "hold (c)" rating on shares of Guidewire Software in a research report on Monday, August 31st. Robert W. Baird boosted their price target on Guidewire Software from $202.00 to $235.00 and gave the stock an "outperform" rating in a research report on Monday, August 31st. Oppenheimer increased their price target on Guidewire Software from $200.00 to $210.00 and gave the stock an "outperform" rating in a research note on Friday, September 4th. Piper Sandler restated an "overweight" rating and set a $210.00 price objective on shares of Guidewire Software in a research note on Friday, September 4th. Finally, Guggenheim upped their price objective on shares of Guidewire Software from $180.00 to $210.00 and gave the stock a "buy" rating in a report on Thursday, August 27th. Twelve research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. According to MarketBeat, Guidewire Software currently has a consensus rating of "Moderate Buy" and an average target price of $216.23.

Guidewire Software Trading Up 8.9%

The company has a quick ratio of 2.44, a current ratio of 1.79 and a debt-to-equity ratio of 0.57. The stock has a market capitalization of $12.77 billion, a P/E ratio of 94.06 and a beta of 0.97. The firm's 50-day simple moving average is $162.96 and its 200 day simple moving average is $147.26.

Guidewire Software (NYSE:GWRE - Get Free Report) last posted its quarterly earnings data on Thursday, September 3rd. The technology company reported $0.99 earnings per share for the quarter, beating the consensus estimate of $0.93 by $0.06. The company 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% on a year-over-year basis. During the same quarter last year, the firm posted $0.84 EPS. Equities research analysts anticipate that Guidewire Software, Inc. will post 2.46 EPS for the current fiscal year.

Insider Transactions at Guidewire Software

In other Guidewire Software news, insider James King sold 1,684 shares of the company's stock in a transaction on Thursday, July 9th. The stock was sold at an average price of $130.64, for a total value of $219,997.76. Following the transaction, the insider owned 30,018 shares of the company's stock, valued at approximately $3,921,551.52. This represents a 5.31% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Michael Rosenbaum sold 5,830 shares of the stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $118.74, for a total value of $692,254.20. Following the sale, the chief executive officer owned 199,776 shares of the company's stock, valued at $23,721,402.24. This trade represents a 2.84% decrease in their position. The disclosure for this sale is available in the SEC filing. 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. Insiders have sold a total of 45,893 shares of company stock valued at $7,067,162 in the last 90 days. 0.46% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Guidewire Software

Institutional investors have recently bought and sold shares of the stock. Principal Financial Group Inc. lifted its position in shares of Guidewire Software by 547.3% in the 1st quarter. Principal Financial Group Inc. now owns 1,180,334 shares of the technology company's stock valued at $176,537,000 after acquiring an additional 997,992 shares in the last quarter. Stephens Investment Management Group LLC lifted its holdings in shares of Guidewire Software by 3.0% in the first quarter. Stephens Investment Management Group LLC now owns 524,818 shares of the technology company's stock valued at $78,492,000 after purchasing an additional 15,260 shares in the last quarter. Geode Capital Management LLC boosted its position in shares of Guidewire Software by 8.9% in the fourth quarter. Geode Capital Management LLC now owns 1,778,201 shares of the technology company's stock worth $357,504,000 after buying an additional 145,924 shares during the period. Entropy Technologies LP acquired a new stake in shares of Guidewire Software in the fourth quarter worth $5,837,000. Finally, Weiss Asset Management LP purchased a new position in shares of Guidewire Software during the first quarter valued at $6,087,000.

Guidewire Software Company Profile

Guidewire Software, Inc NYSE: GWRE provides cloud-based software and technology services for the property and casualty insurance industry. Its solutions help insurers manage core operations, modernize legacy systems, improve customer engagement and use data to support underwriting and claims decisions.

The company's principal platform, InsuranceSuite, includes applications such as PolicyCenter for policy administration, BillingCenter for billing and payments, and ClaimCenter for claims management.

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