Royal Bank Of Canada Forecasts Strong Price Appreciation for Goosehead Insurance (NASDAQ:GSHD) Stock

Key Points

• Royal Bank of Canada raised its price target on Goosehead Insurance from $52 to $55, while keeping a sector perform rating on the stock.
• Analyst views remain mixed overall: the stock has an average Hold rating and an average price target of $66.45, with several firms recently adjusting targets up or down.
• Goosehead Insurance reported earnings above expectations at $0.37 EPS, but revenue of $79.48 million came in below estimates even as it rose 23.1% year over year.

Goosehead Insurance (NASDAQ:GSHD - Get Free Report) had its price objective upped by stock analysts at Royal Bank Of Canada from $52.00 to $55.00 in a research report issued on Monday,Benzinga reports. The brokerage currently has a "sector perform" rating on the stock. Royal Bank Of Canada's price objective would suggest a potential upside of 1.20% from the company's current price.

A number of other analysts have also commented on the stock. Weiss Ratings raised shares of Goosehead Insurance from a "sell (d)" rating to a "sell (d+)" rating in a report on Thursday. Piper Sandler cut their price target on Goosehead Insurance from $60.00 to $52.00 and set an "overweight" rating on the stock in a research note on Tuesday, May 26th. Bank of America reduced their price target on Goosehead Insurance from $43.00 to $37.00 and set an "underperform" rating on the stock in a research report on Tuesday, April 14th. Keefe, Bruyette & Woods lifted their price objective on Goosehead Insurance from $75.00 to $80.00 and gave the stock an "outperform" rating in a research note on Thursday, April 23rd. Finally, Cantor Fitzgerald upped their price objective on Goosehead Insurance from $67.00 to $76.00 and gave the company an "overweight" rating in a report on Thursday. Seven research analysts have rated the stock with a Buy rating, five have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Hold" and an average price target of $66.45.

Goosehead Insurance Stock Performance

Goosehead Insurance stock traded up $0.81 during trading hours on Monday, reaching $54.35. 47,675 shares of the company's stock traded hands, compared to its average volume of 495,677. Goosehead Insurance has a fifty-two week low of $33.68 and a fifty-two week high of $104.00. The firm has a market capitalization of $1.94 billion, a price-to-earnings ratio of 47.51, a PEG ratio of 1.88 and a beta of 1.41. The firm's 50 day moving average is $41.72 and its 200-day moving average is $50.36.

Goosehead Insurance (NASDAQ:GSHD - Get Free Report) last issued its quarterly earnings results on Thursday, April 23rd. The company reported $0.37 EPS for the quarter, topping the consensus estimate of $0.20 by $0.17. Goosehead Insurance had a net margin of 7.94% and a negative return on equity of 20.96%. The company had revenue of $79.48 million during the quarter, compared to analysts' expectations of $105.16 million. During the same quarter in the previous year, the company earned $0.26 EPS. Goosehead Insurance's revenue was up 23.1% on a year-over-year basis. Analysts predict that Goosehead Insurance will post 1.47 EPS for the current year.

Insider Transactions at Goosehead Insurance

In other news, major shareholder Patrick Ryan Langston purchased 2,800 shares of Goosehead Insurance stock in a transaction on Friday, May 29th. The stock was purchased at an average price of $35.56 per share, with a total value of $99,568.00. Following the transaction, the insider directly owned 7,800 shares in the company, valued at $277,368. The trade was a 56.00% increase in their position. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this link. Also, major shareholder & Robyn Jones Descendants Mark sold 9,588 shares of the firm's stock in a transaction that occurred on Wednesday, May 27th. The stock was sold at an average price of $40.76, for a total transaction of $390,806.88. Following the transaction, the insider directly owned 6,995,180 shares of the company's stock, valued at $285,123,536.80. This represents a 0.14% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders acquired 12,800 shares of company stock worth $480,718 and sold 219,192 shares worth $9,092,267. 38.07% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in GSHD. EverSource Wealth Advisors LLC increased its stake in Goosehead Insurance by 480.4% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 325 shares of the company's stock valued at $34,000 after buying an additional 269 shares during the last quarter. Northwestern Mutual Wealth Management Co. boosted its stake in shares of Goosehead Insurance by 802.0% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 442 shares of the company's stock worth $47,000 after buying an additional 393 shares during the last quarter. MassMutual Private Wealth & Trust FSB grew its holdings in shares of Goosehead Insurance by 484.1% in the 2nd quarter. MassMutual Private Wealth & Trust FSB now owns 514 shares of the company's stock valued at $25,000 after acquiring an additional 426 shares in the last quarter. Kestra Advisory Services LLC acquired a new stake in shares of Goosehead Insurance in the fourth quarter valued at about $41,000. Finally, Versant Capital Management Inc increased its position in shares of Goosehead Insurance by 471.9% in the second quarter. Versant Capital Management Inc now owns 772 shares of the company's stock valued at $37,000 after acquiring an additional 637 shares during the last quarter.

Goosehead Insurance Company Profile

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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