Goosehead Insurance (NASDAQ:GSHD) Shares Gap Up on Earnings Beat

Shares of Goosehead Insurance (NASDAQ:GSHD) gapped up prior to trading on Thursday following a stronger than expected earnings report. The stock had previously closed at $45.58, but opened at $53.37. Goosehead Insurance shares last traded at $52.3810, with a volume of 151,364 shares traded.

The company reported $0.37 earnings per share for the quarter, topping the consensus estimate of $0.20 by $0.17. The company had revenue of $79.48 million during the quarter, compared to analyst estimates of $105.16 million. Goosehead Insurance had a negative return on equity of 22.64% and a net margin of 7.94%.The firm’s revenue for the quarter was up 23.1% compared to the same quarter last year. During the same period in the prior year, the business posted $0.26 earnings per share.

Key Goosehead Insurance News

Here are the key news stories impacting Goosehead Insurance this week:

• Positive Sentiment: Q1 results showed an EPS beat and stronger profitability — Goosehead reported EPS above consensus, net income rose year-over-year, adjusted EBITDA grew 57% and total written premium increased 13%, signaling improved margins and earnings momentum. Goosehead Press Release
• Positive Sentiment: Large share repurchases — Management bought back $49.8 million of stock in the quarter at ~ $50.54 average, reducing float and supporting EPS per share. Goosehead Press Release
• Positive Sentiment: Analyst upgrade and higher target — Keefe, Bruyette & Woods raised its price target to $80 and assigned an “outperform” rating, giving the stock a sizable upside thesis that likely lifted sentiment. KBW Raises Price Target
• Positive Sentiment: Outlook and operational initiatives — Management outlined 2026 revenue growth targets (10%–19%), an 86% client-retention target, and noted productivity/AI gains on the call, which investors interpreted as a constructive growth plan. Guidance & Retention Targets
• Neutral Sentiment: Management change — Goosehead appointed John Martin as CFO and promoted Mark Jones Jr. to President & COO; this is material for execution but is largely a neutral-to-slightly-positive governance development until proven by results. CFO Appointment
• Negative Sentiment: Revenue missed some analyst expectations — Core revenue/quarterly revenue metrics came in below certain Street forecasts (market commentary cited ~ $79.5M vs higher consensus), which tempers the beat and explains some investor caution. Revenue vs. Estimates
• Negative Sentiment: Negative return on equity — The company reported a negative ROE (reported in quarter summaries), a structural profitability metric investors watch for capital efficiency and long-term shareholder returns. ROE & Metrics

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on GSHD. Weiss Ratings lowered Goosehead Insurance from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Monday. Citigroup reiterated an “outperform” rating on shares of Goosehead Insurance in a research report on Wednesday, February 18th. BMO Capital Markets lowered their price objective on Goosehead Insurance from $79.00 to $55.00 and set a “market perform” rating for the company in a research report on Wednesday, February 18th. Piper Sandler lowered their price target on Goosehead Insurance from $69.00 to $60.00 and set an “overweight” rating for the company in a research report on Thursday. Finally, Keefe, Bruyette & Woods raised their price target on Goosehead Insurance from $75.00 to $80.00 and gave the stock an “outperform” rating in a research report on Thursday. Seven investment analysts have rated the stock with a Buy rating, five have given a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $67.36.

Insider Activity at Goosehead Insurance

In other news, Director Louis Goldberg purchased 5,575 shares of the stock in a transaction dated Friday, February 20th. The stock was acquired at an average cost of $44.85 per share, for a total transaction of $250,038.75. Following the completion of the transaction, the director directly owned 5,575 shares in the company, valued at approximately $250,038.75. This represents a ∞ increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at this link. 38.07% of the stock is currently owned by corporate insiders.

Institutional Trading of Goosehead Insurance

Hedge funds have recently modified their holdings of the stock. EverSource Wealth Advisors LLC raised its stake in shares of Goosehead Insurance by 480.4% in the second quarter. EverSource Wealth Advisors LLC now owns 325 shares of the company’s stock valued at $34,000 after acquiring an additional 269 shares in the last quarter. Northwestern Mutual Wealth Management Co. raised its stake in shares of Goosehead Insurance by 802.0% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 442 shares of the company’s stock valued at $47,000 after acquiring an additional 393 shares in the last quarter. Kestra Advisory Services LLC acquired a new stake in shares of Goosehead Insurance in the fourth quarter valued at $41,000. Fifth Third Bancorp raised its stake in shares of Goosehead Insurance by 71.4% in the third quarter. Fifth Third Bancorp now owns 682 shares of the company’s stock valued at $51,000 after acquiring an additional 284 shares in the last quarter. Finally, Quadrant Capital Group LLC raised its stake in shares of Goosehead Insurance by 614.3% in the fourth quarter. Quadrant Capital Group LLC now owns 1,000 shares of the company’s stock valued at $74,000 after acquiring an additional 860 shares in the last quarter.

Goosehead Insurance Price Performance

The firm has a market capitalization of $1.86 billion, a price-to-earnings ratio of 44.54, a PEG ratio of 3.32 and a beta of 1.69. The firm has a 50 day moving average price of $45.61 and a 200-day moving average price of $61.37.

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.