Guidewire Software (NYSE:GWRE) Hits New 52-Week Low – Time to Sell?

Guidewire Software, Inc. (NYSE:GWRE) shares hit a new 52-week low on Tuesday . The company traded as low as $120.37 and last traded at $122.1250, with a volume of 245430 shares changing hands. The stock had previously closed at $127.03.

Analyst Upgrades and Downgrades

Several research firms have commented on GWRE. Weiss Ratings restated a “hold (c)” rating on shares of Guidewire Software in a report on Thursday, January 22nd. Citigroup raised their price target on Guidewire Software from $242.00 to $245.00 and gave the company a “neutral” rating in a research note on Friday, December 5th. Wall Street Zen lowered shares of Guidewire Software from a “buy” rating to a “hold” rating in a research note on Friday, November 28th. Citizens Jmp reissued a “market outperform” rating and set a $281.00 target price on shares of Guidewire Software in a research report on Wednesday, December 10th. Finally, Zacks Research lowered shares of Guidewire Software from a “strong-buy” rating to a “hold” rating in a report on Tuesday, December 2nd. Eleven research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Guidewire Software presently has an average rating of “Moderate Buy” and an average price target of $265.54.

Guidewire Software Price Performance

The stock has a 50 day moving average of $171.67 and a 200-day moving average of $208.13. 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 company has a market cap of $10.39 billion, a PE ratio of 116.42, a price-to-earnings-growth ratio of 8.19 and a beta of 1.06.

Guidewire Software (NYSE:GWRE) last posted its quarterly 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 during 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 revenue for the quarter was up 26.5% compared to the same quarter last year. During the same period last year, the firm posted $0.43 EPS. Equities analysts predict that Guidewire Software, Inc. will post 0.52 earnings per share for the current year.

Guidewire Software declared that its Board of Directors has initiated a stock buyback program on Thursday, January 8th that allows the company to buyback $500.00 million in shares. This buyback authorization allows the technology company to reacquire up to 3.1% of its shares through open market purchases. Shares buyback programs are usually an indication that the company’s board of directors believes its stock is undervalued.

Insider Buying and Selling at Guidewire Software

In other Guidewire Software news, CEO Michael George Rosenbaum sold 1,200 shares of Guidewire Software stock in a transaction dated Monday, February 2nd. The stock was sold at an average price of $140.01, for a total transaction of $168,012.00. Following the completion of the transaction, the chief executive officer owned 233,143 shares in the company, valued at approximately $32,642,351.43. This trade represents a 0.51% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CFO Jeffrey Elliott Cooper sold 216 shares of the business’s stock in a transaction dated Tuesday, January 13th. The shares were sold at an average price of $180.87, for a total value of $39,067.92. Following the completion of the transaction, the chief financial officer directly owned 72,753 shares of the company’s stock, valued at approximately $13,158,835.11. This trade represents a 0.30% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 44,760 shares of company stock valued at $8,614,644. 0.46% of the stock is owned by insiders.

Institutional Trading of Guidewire Software

A number of hedge funds have recently added to or reduced their stakes in GWRE. Advisors Asset Management Inc. purchased a new position in shares of Guidewire Software in the 1st quarter valued at about $25,000. Root Financial Partners LLC purchased a new position in Guidewire Software in the 3rd quarter valued at $29,000. Measured Wealth Private Client Group LLC purchased a new position in shares of Guidewire Software in the third quarter worth about $29,000. Newbridge Financial Services Group Inc. acquired a new position in shares of Guidewire Software during the 2nd quarter worth approximately $30,000. Finally, Westside Investment Management Inc. purchased a new stake in Guidewire Software in the 2nd quarter valued at $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.