Guidewire Software (NYSE:GWRE) Stock Price Up 7.6% – What’s Next?

Guidewire Software, Inc. (NYSE:GWRE)’s share price was up 7.6% during mid-day trading on Tuesday . The stock traded as high as $130.00 and last traded at $131.4670. Approximately 262,731 shares were traded during mid-day trading, a decline of 84% from the average daily volume of 1,593,652 shares. The stock had previously closed at $122.22.

Analyst Upgrades and Downgrades

Several research firms recently commented on GWRE. Zacks Research downgraded Guidewire Software from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, December 2nd. Wall Street Zen cut Guidewire Software from a “buy” rating to a “hold” rating in a report on Friday, November 28th. Citizens Jmp reiterated a “market outperform” rating and set a $281.00 target price on shares of Guidewire Software in a research report on Wednesday, December 10th. Wells Fargo & Company cut their price target on shares of Guidewire Software from $250.00 to $210.00 and set an “overweight” rating for the company in a report on Wednesday, February 4th. Finally, Weiss Ratings restated a “hold (c)” rating on shares of Guidewire Software in a research report on Thursday, January 22nd. Eleven investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $255.92.

Guidewire Software Stock Up 5.4%

The company has a debt-to-equity ratio of 0.44, a quick ratio of 3.48 and a current ratio of 3.48. The stock has a market cap of $10.95 billion, a price-to-earnings ratio of 122.69, a PEG ratio of 8.23 and a beta of 1.06. The firm’s 50-day simple moving average is $164.23 and its two-hundred day simple moving average is $204.71.

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

Guidewire Software announced that its Board of Directors has authorized a stock buyback program on Thursday, January 8th that permits the company to buyback $500.00 million in shares. This buyback authorization permits the technology company to repurchase up to 3.1% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s management believes its stock is undervalued.

Insider Buying and Selling at Guidewire Software

In related news, CEO Michael George Rosenbaum sold 6,015 shares of the stock in a transaction that occurred on Tuesday, December 16th. The shares were sold at an average price of $192.08, for a total value of $1,155,361.20. Following the transaction, the chief executive officer directly owned 240,743 shares in the company, valued at $46,241,915.44. This represents a 2.44% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider James Winston King sold 1,860 shares of Guidewire Software stock in a transaction on Thursday, December 18th. The stock was sold at an average price of $195.00, for a total transaction of $362,700.00. Following the sale, the insider directly owned 33,702 shares of the company’s stock, valued at $6,571,890. This represents a 5.23% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 47,160 shares of company stock worth $8,917,644 over the last quarter. Company insiders own 0.46% of the company’s stock.

Institutional Investors Weigh In On Guidewire Software

A number of institutional investors have recently made changes to their positions in the stock. Advisors Asset Management Inc. bought a new stake in shares of Guidewire Software in the first quarter worth about $25,000. Root Financial Partners LLC bought a new stake in Guidewire Software during the 3rd quarter worth approximately $29,000. Measured Wealth Private Client Group LLC bought a new stake in Guidewire Software during the 3rd quarter worth approximately $29,000. Newbridge Financial Services Group Inc. acquired a new stake in Guidewire Software during the 2nd quarter worth approximately $30,000. Finally, Westside Investment Management Inc. bought a new position in Guidewire Software in the second quarter valued at approximately $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.