Guidewire Software Sees Unusually High Options Volume (NYSE:GWRE)

Guidewire Software, Inc. (NYSE:GWRE) saw some unusual options trading activity on Wednesday. Traders bought 1,297 call options on the company. This is an increase of 1,563% compared to the average daily volume of 78 call options.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on GWRE shares. Citigroup raised their price objective on shares of Guidewire Software from $242.00 to $245.00 and gave the stock a “neutral” rating in a report on Friday, December 5th. Wall Street Zen lowered Guidewire Software from a “buy” rating to a “hold” rating in a research note on Friday, November 28th. DA Davidson upgraded Guidewire Software from a “neutral” rating to a “buy” rating and increased their price objective for the stock from $246.00 to $250.00 in a research note on Wednesday, December 17th. Citizens Jmp reissued a “market outperform” rating and set a $281.00 price target on shares of Guidewire Software in a report on Wednesday, December 10th. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Guidewire Software in a report on Thursday, January 22nd. Twelve research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Guidewire Software has a consensus rating of “Moderate Buy” and an average price target of $266.64.

Guidewire Software Price Performance

Shares of GWRE stock opened at $132.01 on Thursday. Guidewire Software has a 12 month low of $121.88 and a 12 month high of $272.60. The stock has a 50-day moving average price of $185.11 and a 200 day moving average price of $213.65. The company has a quick ratio of 3.48, a current ratio of 3.48 and a debt-to-equity ratio of 0.44. The firm has a market cap of $11.22 billion, a price-to-earnings ratio of 125.73, a PEG ratio of 8.45 and a beta of 1.06.

Guidewire Software (NYSE:GWRE) last announced its quarterly earnings data on Wednesday, December 3rd. The technology company reported $0.66 EPS for the quarter, hitting analysts’ consensus estimates of $0.66. Guidewire Software had a return on equity of 10.15% and a net margin of 7.23%.The business had revenue of $332.64 million during the quarter, compared to analysts’ expectations of $316.62 million. During the same period in the previous year, the firm earned $0.43 earnings per share. The firm’s quarterly revenue was up 26.5% compared to the same quarter last year. Research analysts expect that Guidewire Software will post 0.52 EPS for the current year.

Guidewire Software declared that its board has initiated a share buyback program on Thursday, January 8th that permits the company to buyback $500.00 million in shares. This buyback authorization permits the technology company to repurchase up to 3.1% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s board believes its shares are undervalued.

Insider Activity

In other news, CFO Jeffrey Elliott Cooper sold 2,872 shares of the firm’s stock in a transaction dated Tuesday, December 16th. The stock was sold at an average price of $192.08, for a total transaction of $551,653.76. Following the completion of the sale, the chief financial officer directly owned 74,201 shares of the company’s stock, valued at $14,252,528.08. This trade represents a 3.73% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, President John P. Mullen sold 7,975 shares of the firm’s stock in a transaction on Tuesday, December 16th. The shares were sold at an average price of $192.08, for a total transaction of $1,531,838.00. Following the transaction, the president owned 141,983 shares in the company, valued at $27,272,094.64. This represents a 5.32% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 48,358 shares of company stock valued at $9,409,729. Corporate insiders own 0.46% of the company’s stock.

Institutional Investors Weigh In On Guidewire Software

Large investors have recently made changes to their positions in the stock. Advisors Asset Management Inc. bought a new position in shares of Guidewire Software in the first quarter valued at about $25,000. Root Financial Partners LLC acquired a new position in Guidewire Software in the 3rd quarter valued at about $29,000. Measured Wealth Private Client Group LLC bought a new position in Guidewire Software in the 3rd quarter valued at about $29,000. Newbridge Financial Services Group Inc. acquired a new stake in Guidewire Software during the second quarter worth approximately $30,000. Finally, Westside Investment Management Inc. bought a new stake in shares of Guidewire Software during the second quarter worth approximately $32,000.

Guidewire Software Company Profile

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.