Guidewire Software (NYSE:GWRE) Reaches New 1-Year Low – Should You Sell?

Guidewire Software, Inc. (NYSE:GWRE) hit a new 52-week low during mid-day trading on Friday . The stock traded as low as $115.57 and last traded at $120.8230, with a volume of 523787 shares traded. The stock had previously closed at $124.30.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on GWRE shares. Zacks Research raised shares of Guidewire Software from a “hold” rating to a “strong-buy” rating in a report on Friday, March 13th. Oppenheimer lowered their target price on Guidewire Software from $300.00 to $250.00 and set an “outperform” rating for the company in a research note on Tuesday, February 24th. Wells Fargo & Company dropped 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. DA Davidson reaffirmed a “buy” rating and set a $246.00 price target on shares of Guidewire Software in a research note on Tuesday, March 10th. Finally, Royal Bank Of Canada decreased their price target on Guidewire Software from $300.00 to $250.00 and set an “outperform” rating on the stock in a report on Friday, March 6th. One analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $249.85.

Guidewire Software Trading Down 4.9%

The business has a 50 day moving average of $143.15 and a 200 day moving average of $186.24. The firm has a market capitalization of $10.01 billion, a price-to-earnings ratio of 53.74, a PEG ratio of 5.09 and a beta of 1.05. The company has a debt-to-equity ratio of 0.45, a current ratio of 2.93 and a quick ratio of 2.93.

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

Guidewire Software announced that its Board of Directors has authorized a share repurchase plan on Thursday, January 8th that permits the company to repurchase $500.00 million in outstanding shares. This repurchase authorization permits the technology company to purchase up to 3.1% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s board of directors believes its stock is undervalued.

Insider Activity at Guidewire Software

In related news, CEO Michael George Rosenbaum sold 4,737 shares of the business’s stock in a transaction that occurred on Tuesday, March 17th. The shares were sold at an average price of $163.86, for a total transaction of $776,204.82. Following the completion of the transaction, the chief executive officer owned 221,206 shares in the company, valued at approximately $36,246,815.16. The trade was a 2.10% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Jeffrey Elliott Cooper sold 4,757 shares of the stock in a transaction on Friday, March 13th. The stock was sold at an average price of $158.72, for a total transaction of $755,031.04. Following the completion of the sale, the chief financial officer owned 67,996 shares in the company, valued at approximately $10,792,325.12. This trade represents a 6.54% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 31,495 shares of company stock worth $5,001,274. 0.46% of the stock is currently owned by company insiders.

Institutional Trading of Guidewire Software

Several hedge funds have recently added to or reduced their stakes in GWRE. Capital World Investors acquired a new position in Guidewire Software in the fourth quarter valued at about $202,405,000. Alliancebernstein L.P. raised its position in shares of Guidewire Software by 405.1% during the second quarter. Alliancebernstein L.P. now owns 538,303 shares of the technology company’s stock worth $126,743,000 after purchasing an additional 431,725 shares during the period. Stockbridge Partners LLC lifted its holdings in shares of Guidewire Software by 39.0% during the 4th quarter. Stockbridge Partners LLC now owns 1,445,206 shares of the technology company’s stock valued at $290,501,000 after purchasing an additional 405,850 shares in the last quarter. M&T Bank Corp lifted its holdings in shares of Guidewire Software by 4,507.8% during the 4th quarter. M&T Bank Corp now owns 318,675 shares of the technology company’s stock valued at $64,057,000 after purchasing an additional 311,759 shares in the last quarter. Finally, Allspring Global Investments Holdings LLC grew its position in shares of Guidewire Software by 112.6% in the 4th quarter. Allspring Global Investments Holdings LLC now owns 479,859 shares of the technology company’s stock valued at $90,036,000 after purchasing an additional 254,142 shares during the period.

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.