Guidewire Software Sees Unusually High Options Volume (NYSE:GWRE)

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

Wall Street Analyst Weigh In

A number of brokerages recently commented on GWRE. Zacks Research cut Guidewire Software from a “strong-buy” rating to a “hold” rating in a report on Tuesday, December 2nd. Citizens Jmp reaffirmed a “market outperform” rating and issued a $281.00 price objective on shares of Guidewire Software in a research note on Wednesday, December 10th. Wall Street Zen cut Guidewire Software from a “buy” rating to a “hold” rating in a research report on Friday, November 28th. Wells Fargo & Company reduced their target price on shares of Guidewire Software from $275.00 to $250.00 and set an “overweight” rating for the company in a report on Thursday. Finally, Citigroup raised their target price on shares of Guidewire Software from $242.00 to $245.00 and gave the stock a “neutral” rating in a research note on Friday, December 5th. One investment analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, Guidewire Software has an average rating of “Moderate Buy” and a consensus price target of $269.50.

Guidewire Software Stock Down 3.8%

NYSE GWRE opened at $180.59 on Friday. The stock’s 50 day moving average is $207.89 and its 200 day moving average is $223.12. The company has a current ratio of 3.48, a quick ratio of 3.48 and a debt-to-equity ratio of 0.44. Guidewire Software has a 12 month low of $165.08 and a 12 month high of $272.60. The stock has a market cap of $15.35 billion, a PE ratio of 172.00, a P/E/G ratio of 12.23 and a beta of 1.08.

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

Guidewire Software declared that its Board of Directors has authorized a share buyback plan on Thursday, January 8th that permits the company to buyback $500.00 million in shares. This buyback authorization permits the technology company to reacquire up to 3.1% of its stock through open market purchases. Stock buyback plans are usually an indication that the company’s leadership believes its stock is undervalued.

Insider Transactions at Guidewire Software

In other news, CFO Jeffrey Elliott Cooper sold 1,232 shares of the business’s stock in a transaction that occurred on Thursday, December 18th. The shares were sold at an average price of $195.00, for a total transaction of $240,240.00. Following the completion of the transaction, the chief financial officer directly owned 72,969 shares of the company’s stock, valued at $14,228,955. The trade was a 1.66% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Michael George Rosenbaum sold 1,400 shares of the firm’s stock in a transaction that occurred on Monday, December 29th. The stock was sold at an average price of $204.95, for a total transaction of $286,930.00. Following the completion of the sale, the chief executive officer owned 237,943 shares in the company, valued at $48,766,417.85. This represents a 0.58% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 52,740 shares of company stock valued at $10,859,052. Company insiders own 0.46% of the company’s stock.

Hedge Funds Weigh In On Guidewire Software

Several institutional investors have recently added to or reduced their stakes in the company. Advisors Asset Management Inc. purchased a new stake in shares of Guidewire Software during the 1st quarter worth approximately $25,000. Root Financial Partners LLC purchased a new stake in Guidewire Software during the third quarter valued at $29,000. Measured Wealth Private Client Group LLC purchased a new stake in Guidewire Software during the third quarter valued at $29,000. Newbridge Financial Services Group Inc. bought a new position in Guidewire Software during the second quarter valued at $30,000. Finally, Westside Investment Management Inc. purchased a new position in shares of Guidewire Software in the 2nd quarter worth $32,000.

About Guidewire Software

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.