Zacks Investment Research downgraded shares of Guidewire Software (NYSE:GWRE) from a hold rating to a sell rating in a research note published on Monday morning.

According to Zacks, “Guidewire Software is a provider of software solutions for property and casualty (P&C) insurers. Shares of the company have underformed the industry over the past three months.  The company is transforming to a subscription based model from a term license based one, which might hurt the top line in the near term. This is because the costs related to the shift will put pressure on margins in the near term and affect the top line as term license revenues include advance payments whereas subscription-based revenues are a bit delayed. Also, competition from peers adds to the woes. However, the company’s strategic partnership with Salesforce is expected to be a positive. Additionally, the company’s recent acquisition of Cyence is anticipated to enhance its product suite. Also, Guidewire’s cloud deployment partner, Amazon’s Web Services is also gaining momentum and this bodes well for it.”

Several other equities analysts have also issued reports on GWRE. KeyCorp restated a buy rating and set a $86.00 target price on shares of Guidewire Software in a research report on Friday, September 29th. BidaskClub lowered Guidewire Software from a strong-buy rating to a buy rating in a research report on Wednesday, October 18th. Deutsche Bank restated a buy rating and set a $85.00 target price (up from $80.00) on shares of Guidewire Software in a research report on Monday, October 2nd. TheStreet lowered Guidewire Software from a b rating to a c+ rating in a research report on Wednesday, November 29th. Finally, Citigroup set a $85.00 target price on Guidewire Software and gave the stock a buy rating in a research report on Thursday, November 30th. One equities research analyst has rated the stock with a sell rating, three have given a hold rating, eight have assigned a buy rating and one has issued a strong buy rating to the company’s stock. The stock has a consensus rating of Buy and a consensus price target of $80.11.

Shares of Guidewire Software (GWRE) traded down $0.52 during mid-day trading on Monday, reaching $76.68. The company had a trading volume of 438,400 shares, compared to its average volume of 536,743. The firm has a market capitalization of $5,830.00, a price-to-earnings ratio of 306.72, a price-to-earnings-growth ratio of 87.43 and a beta of 1.17. Guidewire Software has a 1 year low of $50.99 and a 1 year high of $83.52.

Guidewire Software (NYSE:GWRE) last posted its earnings results on Wednesday, November 29th. The technology company reported ($0.06) earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $0.04 by ($0.10). The company had revenue of $108.20 million for the quarter, compared to analyst estimates of $100.61 million. Guidewire Software had a return on equity of 3.29% and a net margin of 3.82%. Guidewire Software’s quarterly revenue was up 15.0% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.02 earnings per share. sell-side analysts anticipate that Guidewire Software will post 0.06 earnings per share for the current fiscal year.

In other Guidewire Software news, CFO Richard Hart sold 374 shares of the business’s stock in a transaction that occurred on Friday, January 5th. The stock was sold at an average price of $77.00, for a total value of $28,798.00. Following the sale, the chief financial officer now owns 3,879 shares in the company, valued at approximately $298,683. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Scott Roza sold 782 shares of the business’s stock in a transaction that occurred on Monday, October 16th. The shares were sold at an average price of $78.51, for a total value of $61,394.82. The disclosure for this sale can be found here. Insiders have sold a total of 101,523 shares of company stock worth $7,613,247 in the last quarter. 0.69% of the stock is currently owned by company insiders.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Ameriprise Financial Inc. lifted its stake in Guidewire Software by 51.5% in the 2nd quarter. Ameriprise Financial Inc. now owns 88,489 shares of the technology company’s stock valued at $6,079,000 after acquiring an additional 30,089 shares in the last quarter. First Trust Advisors LP lifted its stake in Guidewire Software by 3,290.9% in the 3rd quarter. First Trust Advisors LP now owns 105,797 shares of the technology company’s stock valued at $8,237,000 after acquiring an additional 102,677 shares in the last quarter. BlackRock Inc. lifted its stake in Guidewire Software by 3.4% in the 2nd quarter. BlackRock Inc. now owns 3,175,007 shares of the technology company’s stock valued at $218,156,000 after acquiring an additional 103,707 shares in the last quarter. Koch Industries Inc. acquired a new position in shares of Guidewire Software during the 2nd quarter worth approximately $304,000. Finally, Vanguard Group Inc. increased its position in shares of Guidewire Software by 1.7% during the 2nd quarter. Vanguard Group Inc. now owns 5,789,792 shares of the technology company’s stock worth $397,816,000 after purchasing an additional 96,478 shares during the last quarter.

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Guidewire Software Company Profile

Guidewire Software, Inc is a provider of software products for property and casualty (P&C) insurers. The Company’s software serves as a technology platform for P&C insurance carriers. The Company’s InsurancePlatform consists of three elements: core transaction processing, data management and analytics, and digital engagement.

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