Guidewire Software (NYSE:GWRE) Trading Up 5% – Should You Buy?

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

Wall Street Analysts Forecast Growth

Several research firms have recently commented on GWRE. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Guidewire Software in a research report on Wednesday, June 3rd. Guggenheim initiated coverage on Guidewire Software in a report on Thursday. They set a “buy” rating and a $180.00 price target on the stock. The Goldman Sachs Group lowered their target price on shares of Guidewire Software from $255.00 to $225.00 and set a “buy” rating on the stock in a report on Friday, June 5th. BTIG Research reiterated a “buy” rating and issued a $175.00 target price on shares of Guidewire Software in a research report on Thursday, July 2nd. Finally, Zacks Research downgraded Guidewire Software from a “strong-buy” rating to a “hold” rating in a research report on Monday, May 25th. One investment analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and three have given a Hold rating to the company’s stock. According to data from MarketBeat, Guidewire Software has a consensus rating of “Moderate Buy” and a consensus price target of $221.00.

Guidewire Software Trading Up 4.6%

The company has a debt-to-equity ratio of 0.51, a quick ratio of 2.44 and a current ratio of 2.44. The stock’s fifty day moving average is $132.71 and its 200 day moving average is $141.71. The stock has a market cap of $11.44 billion, a P/E ratio of 74.23 and a beta of 0.95.

Guidewire Software (NYSE:GWRE) last released its quarterly earnings results on Thursday, June 4th. The technology company reported $0.82 EPS for the quarter, topping the consensus estimate of $0.74 by $0.08. Guidewire Software had a return on equity of 12.62% and a net margin of 11.25%.The company had revenue of $372.54 million during the quarter, compared to analyst estimates of $355.92 million. During the same quarter last year, the business posted $0.88 earnings per share. The firm’s revenue was up 26.9% on a year-over-year basis. As a group, equities research analysts predict that Guidewire Software, Inc. will post 1.83 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, President John P. Mullen sold 4,292 shares of the business’s 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 transaction, the president owned 131,115 shares of the company’s stock, valued at approximately $15,568,595.10. The trade was a 3.17% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Jeffrey Elliott Cooper sold 2,594 shares of the stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $118.74, for a total value of $308,011.56. Following the sale, the chief financial officer owned 63,467 shares in the company, valued at $7,536,071.58. The trade was a 3.93% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders sold 30,193 shares of company stock worth $3,792,858. 0.46% of the stock is owned by company insiders.

Institutional Investors Weigh In On Guidewire Software

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Geode Capital Management LLC grew its holdings in Guidewire Software by 8.9% during the 4th quarter. Geode Capital Management LLC now owns 1,778,201 shares of the technology company’s stock valued at $357,504,000 after purchasing an additional 145,924 shares during the last quarter. Stockbridge Partners LLC lifted its stake in Guidewire Software by 39.0% in the fourth quarter. Stockbridge Partners LLC now owns 1,445,206 shares of the technology company’s stock worth $290,501,000 after purchasing an additional 405,850 shares during the last quarter. AQR Capital Management LLC lifted its stake in Guidewire Software by 3.6% in the fourth quarter. AQR Capital Management LLC now owns 1,316,817 shares of the technology company’s stock worth $264,693,000 after purchasing an additional 45,289 shares during the last quarter. Principal Financial Group Inc. boosted its position in shares of Guidewire Software by 547.3% during the first quarter. Principal Financial Group Inc. now owns 1,180,334 shares of the technology company’s stock valued at $176,537,000 after buying an additional 997,992 shares during the period. Finally, Capital World Investors purchased a new position in shares of Guidewire Software during the fourth quarter valued at approximately $202,405,000.

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.