Guidewire Software (NYSE:GWRE) Shares Up 12.2% – Still a Buy?

Guidewire Software, Inc. (NYSE:GWRE)’s share price shot up 12.2% on Monday . The company traded as high as $170.07 and last traded at $171.3030. 751,341 shares were traded during mid-day trading, a decline of 52% from the average session volume of 1,555,904 shares. The stock had previously closed at $152.67.

Key Stories Impacting Guidewire Software

Here are the key news stories impacting Guidewire Software this week:

• Positive Sentiment: BTIG Research reaffirmed its Buy rating on Guidewire Software and kept a $200 price target, implying upside from current levels. BTIG Reaffirms Buy on Guidewire Software
• Positive Sentiment: DA Davidson also reiterated a Buy rating and raised its target to $246, signaling expectations for continued execution and meaningful long-term upside. DA Davidson Reaffirms Buy on Guidewire Software
• Positive Sentiment: Investors are positioning ahead of Guidewire’s upcoming Q3 FY2026 earnings, with analysts watching cloud subscription momentum, annual recurring revenue (ARR), and margins as key catalysts. Guidewire to Report Q3 Earnings: Here’s What Investors Should Know
• Positive Sentiment: Recent news also highlights a $500 million share repurchase authorization, which can support the stock by signaling confidence in cash generation and capital allocation. Guidewire Software jumps as focus turns to upcoming Q3 results and capital return
• Neutral Sentiment: Guidewire is expected to report revenue of roughly $352 million to $358 million, so the market is likely focused on whether the company can beat expectations and maintain cloud growth momentum. Guidewire Software Q3 Earnings on the Horizon
• Negative Sentiment: A recent market commentary noted that GWRE shares fell after a strong prior-day gain, suggesting some traders may be taking profits or reducing exposure before earnings. Guidewire Software Inc Shares Fall 5.1%

Analysts Set New Price Targets

A number of brokerages recently weighed in on GWRE. Zacks Research lowered shares of Guidewire Software from a “strong-buy” rating to a “hold” rating in a report on Monday, May 25th. DA Davidson reissued a “buy” rating and issued a $246.00 price target on shares of Guidewire Software in a report on Tuesday. Stifel Nicolaus lowered their price target on shares of Guidewire Software from $300.00 to $250.00 and set a “buy” rating for the company in a report on Friday, March 6th. Oppenheimer lowered their price target on shares of Guidewire Software from $250.00 to $180.00 and set an “outperform” rating for the company in a report on Monday, May 18th. Finally, Royal Bank Of Canada lowered their price target on shares of Guidewire Software from $300.00 to $250.00 and set an “outperform” rating for the company in a report on Friday, March 6th. Eleven equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $244.46.

Guidewire Software Trading Down 5.2%

The stock has a market capitalization of $13.76 billion, a P/E ratio of 73.87 and a beta of 0.93. The company has a debt-to-equity ratio of 0.45, a current ratio of 2.93 and a quick ratio of 2.93. The business’s 50 day simple moving average is $140.20 and its 200-day simple moving average is $162.43.

Guidewire Software (NYSE:GWRE) last announced its quarterly earnings data on Thursday, March 5th. The technology company reported $1.17 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.77 by $0.40. Guidewire Software had a net margin of 14.11% and a return on equity of 13.44%. The firm had revenue of $359.10 million for the quarter, compared to analysts’ expectations of $342.88 million. During the same period last year, the firm earned $0.51 earnings per share. The business’s revenue for the quarter was up 24.0% on a year-over-year basis. As a group, analysts forecast that Guidewire Software, Inc. will post 1.84 EPS for the current year.

Insider Buying and Selling at Guidewire Software

In other Guidewire Software news, President John P. Mullen sold 6,576 shares of the firm’s stock in a transaction that occurred on Tuesday, March 17th. The shares were sold at an average price of $163.86, for a total value of $1,077,543.36. Following the transaction, the president directly owned 135,407 shares of the company’s stock, valued at approximately $22,187,791.02. This trade represents a 4.63% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Jeffrey Elliott Cooper sold 4,757 shares of the firm’s stock in a transaction that occurred on Friday, March 13th. The shares were sold at an average price of $158.72, for a total transaction of $755,031.04. Following the completion of the transaction, the chief financial officer directly owned 67,996 shares in the company, valued at approximately $10,792,325.12. The trade was a 6.54% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 33,679 shares of company stock valued at $5,214,878. 0.46% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Guidewire Software

Several institutional investors and hedge funds have recently made changes to their positions in GWRE. Capital World Investors acquired a new position in shares of Guidewire Software in the 4th quarter valued at $202,405,000. Principal Financial Group Inc. grew its holdings in shares of Guidewire Software by 547.3% in the 1st 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. Alliancebernstein L.P. grew its holdings in shares of Guidewire Software by 405.1% in the 2nd quarter. Alliancebernstein L.P. now owns 538,303 shares of the technology company’s stock valued at $126,743,000 after buying an additional 431,725 shares during the period. Stockbridge Partners LLC grew its holdings in shares of Guidewire Software by 39.0% in the 4th quarter. Stockbridge Partners LLC now owns 1,445,206 shares of the technology company’s stock valued at $290,501,000 after buying an additional 405,850 shares during the period. Finally, Assenagon Asset Management S.A. grew its holdings in shares of Guidewire Software by 179.0% in the 1st quarter. Assenagon Asset Management S.A. now owns 628,759 shares of the technology company’s stock valued at $94,037,000 after buying an additional 403,370 shares during the period.

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.