Guidewire Software (NYSE:GWRE) Trading Down 6.3% – Here’s Why

Guidewire Software, Inc. (NYSE:GWRE)’s stock price dropped 6.3% during trading on Wednesday . The company traded as low as $132.08 and last traded at $133.5160. 648,250 shares changed hands during mid-day trading, a decline of 61% from the average session volume of 1,651,158 shares. The stock had previously closed at $142.53.

Analyst Ratings Changes

GWRE has been the subject of a number of recent analyst reports. Wells Fargo & Company lowered their price objective on Guidewire Software from $210.00 to $190.00 and set an “overweight” rating for the company in a research report on Friday, June 5th. The Goldman Sachs Group reduced their target price on shares of Guidewire Software from $255.00 to $225.00 and set a “buy” rating for the company in a report on Friday, June 5th. Weiss Ratings reissued a “hold (c)” rating on shares of Guidewire Software in a report on Wednesday, June 3rd. Oppenheimer lowered their target price on shares of Guidewire Software from $250.00 to $180.00 and set an “outperform” rating on the stock in a research note on Monday, May 18th. Finally, BTIG Research reissued a “buy” rating and issued a $175.00 price target on shares of Guidewire Software in a research note on Thursday, July 2nd. Eleven analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $224.42.

Guidewire Software Trading Down 6.1%

The company has a fifty day moving average price of $132.39 and a two-hundred day moving average price of $142.58. The firm has a market capitalization of $11.14 billion, a price-to-earnings ratio of 72.36 and a beta of 0.95. The company has a current ratio of 2.44, a quick ratio of 2.44 and a debt-to-equity ratio of 0.51.

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

Insiders Place Their Bets

In other Guidewire Software news, CEO Michael George Rosenbaum sold 5,830 shares of Guidewire Software stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $118.74, for a total value of $692,254.20. Following the sale, the chief executive officer owned 199,776 shares in the company, valued at $23,721,402.24. The trade was a 2.84% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider James Winston King sold 1,684 shares of the stock in a transaction on Thursday, July 9th. The stock was sold at an average price of $130.64, for a total value of $219,997.76. Following the transaction, the insider owned 30,018 shares of the company’s stock, valued at approximately $3,921,551.52. This represents a 5.31% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 30,193 shares of company stock valued at $3,792,858. Insiders own 0.46% of the company’s stock.

Hedge Funds Weigh In On Guidewire Software

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Capital World Investors acquired a new position in shares of Guidewire Software during the fourth quarter worth about $202,405,000. Principal Financial Group Inc. boosted its stake in Guidewire Software by 547.3% during the 1st quarter. Principal Financial Group Inc. now owns 1,180,334 shares of the technology company’s stock worth $176,537,000 after purchasing an additional 997,992 shares during the period. Alliancebernstein L.P. grew its stake 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 purchasing an additional 431,725 shares during the last quarter. Stockbridge Partners LLC increased its stake in 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. increased its stake in shares of Guidewire Software by 179.0% during the first quarter. Assenagon Asset Management S.A. now owns 628,759 shares of the technology company’s stock worth $94,037,000 after acquiring an additional 403,370 shares during the period.

Guidewire Software Company Profile

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.