Goosehead Insurance (NASDAQ:GSHD) Shares Gap Down – Here’s Why

Goosehead Insurance (NASDAQ:GSHD)’s share price gapped down before the market opened on Tuesday. The stock had previously closed at $46.19, but opened at $44.91. Goosehead Insurance shares last traded at $44.5150, with a volume of 44,934 shares changing hands.

Wall Street Analyst Weigh In

Several research firms have commented on GSHD. Texas Capital upgraded shares of Goosehead Insurance from a “hold” rating to a “strong-buy” rating in a report on Tuesday, September 29th. Keefe, Bruyette & Woods reduced their target price on shares of Goosehead Insurance from $80.00 to $72.00 and set an “outperform” rating for the company in a report on Thursday, July 23rd. JPMorgan Chase & Co. decreased their price target on shares of Goosehead Insurance from $68.00 to $60.00 and set a “neutral” rating on the stock in a research note on Thursday, October 1st. Piper Sandler cut shares of Goosehead Insurance from an “overweight” rating to a “neutral” rating and lowered their price target for the company from $72.00 to $48.00 in a report on Tuesday. Finally, Royal Bank Of Canada increased their price target on shares of Goosehead Insurance from $55.00 to $58.00 and gave the company a “sector perform” rating in a report on Thursday, July 23rd. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $66.27.

Goosehead Insurance Stock Performance

The stock’s fifty day simple moving average is $60.97 and its 200-day simple moving average is $49.98. The stock has a market cap of $1.58 billion, a P/E ratio of 32.49, a P/E/G ratio of 1.62 and a beta of 1.46.

Goosehead Insurance (NASDAQ:GSHD) last announced its earnings results on Wednesday, July 22nd. The company reported $0.64 EPS for the quarter, topping the consensus estimate of $0.47 by $0.17. Goosehead Insurance had a net margin of 8.78% and a negative return on equity of 21.00%. The company had revenue of $95.63 million for the quarter, compared to analysts’ expectations of $103.30 million. During the same period last year, the firm earned $0.49 earnings per share. The business’s revenue for the quarter was up 20.6% on a year-over-year basis. As a group, equities research analysts forecast that Goosehead Insurance will post 1.46 earnings per share for the current year.

Insider Buying and Selling

In other news, major shareholder & Robyn Jones Descendants Mark sold 125,000 shares of the company’s stock in a transaction on Wednesday, July 29th. The stock was sold at an average price of $69.71, for a total transaction of $8,713,750.00. Following the completion of the sale, the insider directly owned 6,870,180 shares in the company, valued at approximately $478,920,247.80. This represents a 1.79% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, major shareholder Adrienne Kebodeaux sold 7,000 shares of the firm’s stock in a transaction on Thursday, August 20th. The stock was sold at an average price of $70.00, for a total value of $490,000.00. Following the completion of the transaction, the insider owned 273,027 shares in the company, valued at $19,111,890. The trade was a 2.50% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders bought 339,979 shares of company stock valued at $18,446,632 and sold 267,000 shares valued at $18,056,139. Corporate insiders own 38.07% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in GSHD. Langdon Equity Partners acquired a new stake in Goosehead Insurance in the fourth quarter valued at about $41,892,000. Wesbanco Bank Inc. lifted its holdings in shares of Goosehead Insurance by 226.5% in the first quarter. Wesbanco Bank Inc. now owns 32,000 shares of the company’s stock worth $1,365,000 after acquiring an additional 22,200 shares during the last quarter. Principal Financial Group Inc. lifted its holdings in shares of Goosehead Insurance by 23.2% in the first quarter. Principal Financial Group Inc. now owns 219,745 shares of the company’s stock worth $9,374,000 after acquiring an additional 41,334 shares during the last quarter. Corient Private Wealth LP boosted its stake in shares of Goosehead Insurance by 123.7% in the 2nd quarter. Corient Private Wealth LP now owns 56,935 shares of the company’s stock valued at $2,761,000 after purchasing an additional 31,483 shares in the last quarter. Finally, Motley Fool Wealth Management LLC grew its holdings in shares of Goosehead Insurance by 44.4% during the 4th quarter. Motley Fool Wealth Management LLC now owns 122,473 shares of the company’s stock valued at $9,020,000 after purchasing an additional 37,685 shares during the last quarter.

Goosehead Insurance Company Profile

Goosehead Insurance, Inc is an independent insurance agency and distribution company that helps individuals and businesses shop for insurance coverage from a broad network of insurance carriers. The company uses a technology-enabled platform to provide quoting, policy management and customer service through its corporate operations and franchise network.

Goosehead offers a range of personal and commercial insurance products, including homeowners, automobile, renters, flood, umbrella and life insurance, along with coverage designed for small businesses and other commercial customers.