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

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

Wall Street Analysts Forecast Growth

Several research firms have weighed in on GWRE. Citizens Jmp reiterated a “market outperform” rating and issued a $281.00 price objective on shares of Guidewire Software in a report on Wednesday, December 10th. Weiss Ratings reissued a “hold (c)” rating on shares of Guidewire Software in a research report on Thursday, January 22nd. Wells Fargo & Company cut their price objective on shares of Guidewire Software from $250.00 to $210.00 and set an “overweight” rating on the stock in a research report on Wednesday, February 4th. DA Davidson upgraded Guidewire Software from a “neutral” rating to a “buy” rating and increased their target price for the company from $246.00 to $250.00 in a research note on Wednesday, December 17th. Finally, Wall Street Zen lowered shares of Guidewire Software from a “buy” rating to a “hold” rating in a research note on Friday, November 28th. Eleven research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $265.54.

Guidewire Software Price Performance

The firm has a 50 day moving average price of $171.67 and a 200 day moving average price of $208.13. The stock has a market capitalization 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. The company has a current ratio of 3.48, a quick ratio of 3.48 and a debt-to-equity ratio of 0.44.

Guidewire Software (NYSE:GWRE) last issued its quarterly earnings results on Wednesday, December 3rd. The technology company reported $0.66 earnings per share for the quarter, meeting the consensus estimate of $0.66. The business had revenue of $332.64 million for the quarter, compared to the consensus estimate of $316.62 million. Guidewire Software had a net margin of 7.23% and a return on equity of 10.15%. The company’s revenue for the quarter was up 26.5% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.43 earnings per share. Research analysts anticipate that Guidewire Software, Inc. will post 0.52 earnings per share for the current year.

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

Insiders Place Their Bets

In other Guidewire Software news, CEO Michael George Rosenbaum sold 6,015 shares of Guidewire Software stock in a transaction that occurred on Tuesday, December 16th. The stock was sold at an average price of $192.08, for a total value of $1,155,361.20. Following the sale, the chief executive officer owned 240,743 shares of the company’s stock, valued at $46,241,915.44. The trade was a 2.44% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, President John P. Mullen sold 7,975 shares of the business’s stock in a transaction on Tuesday, December 16th. The stock was sold at an average price of $192.08, for a total transaction of $1,531,838.00. Following the completion of the sale, the president owned 141,983 shares in the company, valued at $27,272,094.64. This represents a 5.32% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 44,760 shares of company stock valued at $8,614,644. 0.46% of the stock is owned by company insiders.

Institutional Trading of Guidewire Software

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