Guidewire Software’s (GWRE) “Buy” Rating Reaffirmed at DA Davidson

DA Davidson reiterated their buy rating on shares of Guidewire Software (NYSE:GWRE) in a report released on Tuesday,Benzinga reports. The brokerage currently has a $246.00 price objective on the technology company’s stock.

A number of other equities analysts have also weighed in on the company. Citizens Jmp reissued a “market outperform” rating and issued a $281.00 target price on shares of Guidewire Software in a research report on Wednesday, December 10th. Royal Bank Of Canada dropped their price target on shares of Guidewire Software from $300.00 to $250.00 and set an “outperform” rating on the stock in a report on Friday, March 6th. Citigroup lifted their price target on shares of Guidewire Software from $242.00 to $245.00 and gave the stock a “neutral” rating in a research note on Friday, December 5th. Weiss Ratings restated a “hold (c)” rating on shares of Guidewire Software in a research report on Thursday, January 22nd. Finally, Zacks Research cut shares of Guidewire Software from a “strong-buy” rating to a “hold” rating in a report on Tuesday, December 2nd. Eleven equities 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 company’s stock. According to MarketBeat, Guidewire Software presently has a consensus rating of “Moderate Buy” and an average target price of $249.85.

Guidewire Software Stock Down 2.9%

Guidewire Software stock opened at $158.63 on Tuesday. The firm has a market cap of $13.49 billion, a price-to-earnings ratio of 72.10, a PEG ratio of 10.52 and a beta of 1.05. The stock has a fifty day simple moving average of $153.03 and a two-hundred day simple moving average of $199.99. Guidewire Software has a 12 month low of $120.37 and a 12 month high of $272.60. The company has a current ratio of 2.93, a quick ratio of 3.48 and a debt-to-equity ratio of 0.45.

Guidewire Software (NYSE:GWRE) last announced its quarterly earnings results on Thursday, March 5th. The technology company reported $1.17 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.77 by $0.40. Guidewire Software had a return on equity of 13.44% and a net margin of 14.11%.The firm had revenue of $359.10 million for the quarter, compared to the consensus estimate of $342.88 million. During the same period in the prior year, the company posted $0.51 earnings per share. The company’s quarterly revenue was up 24.0% on a year-over-year basis. Equities analysts predict that Guidewire Software will post 0.52 EPS for the current fiscal year.

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

Insider Activity

In other news, 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 sale, the president directly owned 141,983 shares in the company, valued at $27,272,094.64. This trade represents a 5.32% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Michael George Rosenbaum sold 6,015 shares of Guidewire Software stock in a transaction on Tuesday, December 16th. The shares were sold at an average price of $192.08, for a total transaction of $1,155,361.20. Following the transaction, the chief executive officer owned 240,743 shares in the company, valued at approximately $46,241,915.44. This trade represents a 2.44% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 42,560 shares of company stock worth $7,882,898 over the last ninety days. Company insiders own 0.46% of the company’s stock.

Institutional Investors Weigh In On Guidewire Software

Institutional investors and hedge funds have recently bought and sold shares of the business. Corient Private Wealth LLC boosted its stake in shares of Guidewire Software by 36.9% in the fourth quarter. Corient Private Wealth LLC now owns 10,820 shares of the technology company’s stock worth $2,177,000 after acquiring an additional 2,915 shares during the period. Caitong International Asset Management Co. Ltd raised its stake in Guidewire Software by 471.3% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 497 shares of the technology company’s stock valued at $100,000 after purchasing an additional 410 shares during the period. MidFirst Bank bought a new stake in Guidewire Software during the 4th quarter valued at approximately $212,000. Avory & Company LLC lifted its holdings in Guidewire Software by 10.0% in the 4th quarter. Avory & Company LLC now owns 1,187 shares of the technology company’s stock worth $239,000 after purchasing an additional 108 shares in the last quarter. Finally, Pacer Advisors Inc. lifted its holdings in Guidewire Software by 20.6% in the 4th quarter. Pacer Advisors Inc. now owns 13,528 shares of the technology company’s stock worth $2,719,000 after purchasing an additional 2,313 shares in the last quarter.

Key Stories Impacting Guidewire Software

Here are the key news stories impacting Guidewire Software this week:

• Positive Sentiment: Q2 results beat and guidance lift investor sentiment — Guidewire posted a clear earnings and revenue beat and management raised outlook, which supports a higher valuation and growth narrative. A Look At Guidewire Software’s (GWRE) Valuation After Earnings Beat And Upgraded Guidance
• Positive Sentiment: Analysts reaffirming/raising targets — DA Davidson reaffirmed a Buy and set a $246 price target (a sizable upside vs. current levels), signaling continued analyst conviction. DA Davidson Reaffirms Buy
• Positive Sentiment: Share repurchase program — Management has authorized a $500M buyback, which reduces float and signals confidence from the board. MarketBeat: GWRE Overview
• Neutral Sentiment: Deep-dive coverage on international revenue — Zacks published analysis of Guidewire’s international revenue trends and how they affect forecasts; useful context but not an immediate catalyst. International Markets and Guidewire Software (GWRE): A Deep Dive for Investors
• Neutral Sentiment: Earnings presentation released — The company’s Q2 earnings deck is available for deeper review of metrics and cadence; important for modelers but not a new surprise. Guidewire Software, Inc. 2026 Q2 – Results – Earnings Call Presentation
• Negative Sentiment: Insider selling by CEO — CEO Michael Rosenbaum sold 1,200 shares (filed with the SEC), adding to a series of recent disposals; recurring insider sales can spook short-term sentiment. CEO Insider Sale
• Negative Sentiment: Two major banks trimmed price targets — Royal Bank of Canada and Stifel cut targets from prior highs to $250, a downgrade in projected upside that likely contributed to profit-taking. RBC Cuts Price Target Stifel Cuts Price Target
• Negative Sentiment: Market technical/valuation pressure — Despite positive fundamentals, the stock remains well below its 200-day average and some investors appear to be locking in gains after the recent run-up, keeping near-term pressure on the share price. Valuation Context

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.