Zacks Research Has Optimistic Outlook of GWRE Q2 Earnings

Key Points

• Zacks Research raised its Q2 2027 EPS estimate for Guidewire Software to $0.66 from $0.65 and kept a Strong-Buy rating on the stock. The consensus full-year earnings estimate is $1.84 per share.
• Wall Street sentiment remains broadly positive, with Guidewire holding an average Moderate Buy rating and a consensus price target of $244.46, despite several analysts trimming their targets recently.
• Guidewire’s recent performance has been solid: the company last reported EPS of $1.17, easily beating estimates, while revenue rose 24% year over year to $359.1 million. Shares were down 1.9% on Wednesday and have traded well below their 52-week high.

Guidewire Software, Inc. (NYSE:GWRE - Free Report) - Equities researchers at Zacks Research increased their Q2 2027 earnings estimates for shares of Guidewire Software in a research report issued on Tuesday, May 26th. Zacks Research analyst Team now forecasts that the technology company will post earnings of $0.66 per share for the quarter, up from their previous estimate of $0.65. Zacks Research currently has a "Strong-Buy" rating on the stock. The consensus estimate for Guidewire Software's current full-year earnings is $1.84 per share.

A number of other equities research analysts have also recently issued reports on the company. DA Davidson reaffirmed a "buy" rating and set a $246.00 target price on shares of Guidewire Software in a research report on Tuesday, March 10th. Oppenheimer decreased their target price on Guidewire Software from $250.00 to $180.00 and set an "outperform" rating for the company in a research report on Monday, May 18th. Wells Fargo & Company decreased their target price on Guidewire Software from $250.00 to $210.00 and set an "overweight" rating for the company in a research report on Wednesday, February 4th. BTIG Research upped their target price on Guidewire Software from $175.00 to $200.00 and gave the stock a "buy" rating in a research report on Friday, March 6th. Finally, Royal Bank Of Canada decreased their target price on Guidewire Software from $300.00 to $250.00 and set an "outperform" rating for the company in a research report on Friday, March 6th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $244.46.

Guidewire Software Stock Down 1.9%

Shares of Guidewire Software stock opened at $137.55 on Wednesday. The stock has a market capitalization of $11.64 billion, a P/E ratio of 62.52 and a beta of 0.91. The company has a quick ratio of 2.93, a current ratio of 2.93 and a debt-to-equity ratio of 0.45. The stock has a 50 day moving average price of $141.00 and a two-hundred day moving average price of $164.33. Guidewire Software has a 12-month low of $115.57 and a 12-month high of $272.60.

Guidewire Software (NYSE:GWRE - Get Free Report) last released its quarterly earnings data on Thursday, March 5th. The technology company reported $1.17 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.77 by $0.40. Guidewire Software had a net margin of 14.11% and a return on equity of 13.44%. The business had revenue of $359.10 million during the quarter, compared to analyst estimates of $342.88 million. During the same quarter in the previous year, the business earned $0.51 EPS. Guidewire Software's quarterly revenue was up 24.0% compared to the same quarter last year.

Hedge Funds Weigh In On Guidewire Software

Several large investors have recently added to or reduced their stakes in GWRE. Advisors Asset Management Inc. acquired a new position in Guidewire Software in the 1st quarter valued at approximately $25,000. Amundi raised its holdings in Guidewire Software by 703.0% in the 2nd quarter. Amundi now owns 36,093 shares of the technology company's stock valued at $8,220,000 after acquiring an additional 31,598 shares in the last quarter. Jump Financial LLC acquired a new position in Guidewire Software in the 2nd quarter valued at approximately $305,000. Bank of Nova Scotia raised its holdings in Guidewire Software by 30.9% in the 2nd quarter. Bank of Nova Scotia now owns 2,024 shares of the technology company's stock valued at $477,000 after acquiring an additional 478 shares in the last quarter. Finally, NewEdge Advisors LLC raised its holdings in Guidewire Software by 30.6% in the 2nd quarter. NewEdge Advisors LLC now owns 4,911 shares of the technology company's stock valued at $1,156,000 after acquiring an additional 1,152 shares in the last quarter.

Insider Buying and Selling

In related news, President John P. Mullen sold 6,576 shares of the business's stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $163.86, for a total transaction of $1,077,543.36. Following the transaction, the president owned 135,407 shares of the company's stock, valued at approximately $22,187,791.02. The trade was a 4.63% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO Michael George Rosenbaum sold 4,737 shares of the business's stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $163.86, for a total transaction of $776,204.82. Following the transaction, the chief executive officer directly owned 221,206 shares in the company, valued at $36,246,815.16. This trade represents a 2.10% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 32,479 shares of company stock valued at $5,024,174. 0.46% of the stock is owned by company insiders.

About Guidewire Software

Guidewire Software, Inc develops software products and cloud services for property and casualty (P&C) insurance carriers. Headquartered in San Mateo, California, the company's offerings are designed to help insurers manage the core functions of their business—policy administration, billing and claims—while supporting digital engagement, analytics and operational modernization.

Guidewire's core product portfolio is commonly known as the InsuranceSuite, which includes PolicyCenter for policy administration, BillingCenter for billing and receivables, and ClaimCenter for claims management.

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