Traders Purchase High Volume of Call Options on Guidewire Software (NYSE:GWRE)

Guidewire Software, Inc. (NYSE:GWRE) was the target of some unusual options trading activity on Wednesday. Investors acquired 1,297 call options on the company. This represents an increase of 1,563% compared to the average volume of 78 call options.

Guidewire Software Stock Up 2.3%

GWRE opened at $159.09 on Thursday. The business has a 50 day moving average price of $198.28 and a two-hundred day moving average price of $218.94. 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 company has a market cap of $13.53 billion, a PE ratio of 151.51, a P/E/G ratio of 10.13 and a beta of 1.08. Guidewire Software has a 52 week low of $154.51 and a 52 week high of $272.60.

Guidewire Software (NYSE:GWRE) last announced its earnings results on Wednesday, December 3rd. The technology company reported $0.66 earnings per share for the quarter, meeting the consensus estimate of $0.66. The company had revenue of $332.64 million for the quarter, compared to the consensus estimate of $316.62 million. Guidewire Software had a return on equity of 10.15% and a net margin of 7.23%.The company’s revenue was up 26.5% on a year-over-year basis. During the same period last year, the business posted $0.43 EPS. As a group, research analysts anticipate that Guidewire Software will post 0.52 EPS for the current year.

Guidewire Software declared that its board 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 repurchase up to 3.1% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s board of directors believes its stock is undervalued.

Analysts Set New Price Targets

A number of equities research analysts recently weighed in on the stock. Weiss Ratings reissued a “hold (c)” rating on shares of Guidewire Software in a research report on Wednesday, October 8th. Wells Fargo & Company cut their target price on Guidewire Software from $275.00 to $250.00 and set an “overweight” rating on the stock in a research report on Thursday, January 8th. DA Davidson raised Guidewire Software from a “neutral” rating to a “buy” rating and upped their target price for the company from $246.00 to $250.00 in a research report on Wednesday, December 17th. BTIG Research restated a “buy” rating and set a $250.00 price target on shares of Guidewire Software in a research note on Wednesday, December 17th. Finally, Wall Street Zen lowered Guidewire Software from a “buy” rating to a “hold” rating in a research report on Friday, November 28th. One analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $269.50.

Insiders Place Their Bets

In other news, CFO Jeffrey Elliott Cooper sold 216 shares of Guidewire Software stock in a transaction on Tuesday, January 13th. The shares were sold at an average price of $180.87, for a total transaction of $39,067.92. Following the completion of the sale, the chief financial officer directly owned 72,753 shares of the company’s stock, valued at approximately $13,158,835.11. The trade was a 0.30% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider James Winston King sold 1,860 shares of the stock in a transaction on Thursday, December 18th. The shares were sold at an average price of $195.00, for a total value of $362,700.00. Following the completion of the transaction, the insider directly owned 33,702 shares in the company, valued at $6,571,890. This trade represents a 5.23% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders sold 50,558 shares of company stock worth $10,239,521. 0.46% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Guidewire Software

Large investors have recently bought and sold shares of the company. Advisors Asset Management Inc. acquired a new position in shares of Guidewire Software during the first quarter worth about $25,000. Root Financial Partners LLC acquired a new position in Guidewire Software during the 3rd quarter worth approximately $29,000. Measured Wealth Private Client Group LLC purchased a new position in shares of Guidewire Software during the 3rd quarter worth approximately $29,000. Newbridge Financial Services Group Inc. purchased a new position in shares of Guidewire Software during the 2nd quarter worth approximately $30,000. Finally, Westside Investment Management Inc. acquired a new stake in shares of Guidewire Software in the 2nd quarter valued at 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.