Guidewire Software (NYSE:GWRE) Shares Up 5% – Here’s Why

Guidewire Software, Inc. (NYSE:GWRE) was up 5% on Friday . The company traded as high as $137.15 and last traded at $137.95. Approximately 136,041 shares changed hands during trading, a decline of 92% from the average session volume of 1,642,764 shares. The stock had previously closed at $131.38.

Analyst Ratings Changes

Several analysts have issued reports on the company. Oppenheimer dropped their price objective on Guidewire Software from $250.00 to $180.00 and set an “outperform” rating on the stock in a research note on Monday, May 18th. Zacks Research downgraded Guidewire Software from a “strong-buy” rating to a “hold” rating in a research note on Monday, May 25th. JPMorgan Chase & Co. decreased their target price on Guidewire Software from $300.00 to $258.00 and set an “overweight” rating on the stock in a report on Tuesday, July 14th. Stifel Nicolaus dropped their price target on Guidewire Software from $225.00 to $200.00 and set a “buy” rating on the stock in a research note on Friday, June 5th. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Guidewire Software in a report on Wednesday, June 3rd. One analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $221.00.

Guidewire Software Stock Performance

The firm has a market cap of $11.52 billion, a price-to-earnings ratio of 74.78 and a beta of 0.95. The stock’s 50 day moving average is $132.87 and its 200 day moving average is $141.68. The company has a current ratio of 2.44, a quick ratio of 2.44 and a debt-to-equity ratio of 0.51.

Guidewire Software (NYSE:GWRE) last released its quarterly earnings results on Thursday, June 4th. The technology company reported $0.82 earnings per share for the quarter, beating the consensus estimate of $0.74 by $0.08. Guidewire Software had a net margin of 11.25% and a return on equity of 12.62%. The firm had revenue of $372.54 million for the quarter, compared to analysts’ expectations of $355.92 million. During the same period in the prior year, the firm earned $0.88 EPS. The business’s revenue was up 26.9% on a year-over-year basis. Analysts anticipate that Guidewire Software, Inc. will post 1.83 earnings per share for the current year.

Insider Transactions at Guidewire Software

In related news, President John P. Mullen sold 4,292 shares of Guidewire Software stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $118.74, for a total transaction of $509,632.08. Following the completion of the sale, the president directly owned 131,115 shares of the company’s stock, valued at approximately $15,568,595.10. This trade represents a 3.17% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Michael George Rosenbaum sold 5,830 shares of the business’s stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $118.74, for a total value of $692,254.20. Following the completion of the sale, the chief executive officer owned 199,776 shares of the company’s stock, valued at $23,721,402.24. This trade represents a 2.84% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 30,193 shares of company stock worth $3,792,858 in the last ninety days. 0.46% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Guidewire Software

Several institutional investors and hedge funds have recently modified their holdings of the business. Advisors Asset Management Inc. acquired a new stake in Guidewire Software in the 1st quarter worth about $25,000. Amundi grew its position in shares of Guidewire Software by 703.0% during the 2nd quarter. Amundi now owns 36,093 shares of the technology company’s stock worth $8,220,000 after purchasing an additional 31,598 shares in the last quarter. Jump Financial LLC acquired a new position in shares of Guidewire Software during the 2nd quarter worth approximately $305,000. Bank of Nova Scotia increased its holdings in shares of Guidewire Software by 30.9% during the second quarter. Bank of Nova Scotia now owns 2,024 shares of the technology company’s stock worth $477,000 after purchasing an additional 478 shares during the period. Finally, NewEdge Advisors LLC increased its holdings in shares of Guidewire Software by 30.6% during the second quarter. NewEdge Advisors LLC now owns 4,911 shares of the technology company’s stock worth $1,156,000 after purchasing an additional 1,152 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.