Guidewire Software (NYSE:GWRE) Shares Up 7.6% – Still a Buy?

Guidewire Software, Inc. (NYSE:GWRE) rose 7.6% on Tuesday . The stock traded as high as $130.00 and last traded at $131.4670. Approximately 262,731 shares traded hands during trading, a decline of 84% from the average daily volume of 1,593,652 shares. The stock had previously closed at $122.22.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on the stock. Zacks Research downgraded shares of Guidewire Software from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, December 2nd. BTIG Research lowered their target price on shares of Guidewire Software from $225.00 to $175.00 and set a “buy” rating for the company in a report on Wednesday, February 18th. Oppenheimer cut their price target on shares of Guidewire Software from $300.00 to $250.00 and set an “outperform” rating on the stock in a research note on Tuesday. Wells Fargo & Company decreased their price target on shares of Guidewire Software from $250.00 to $210.00 and set an “overweight” rating on the stock in a report on Wednesday, February 4th. Finally, Wall Street Zen cut 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 issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $255.92.

Guidewire Software Stock Up 6.1%

The firm’s 50-day moving average price is $161.76 and its 200-day moving average price is $203.63. The company has a debt-to-equity ratio of 0.44, a current ratio of 3.48 and a quick ratio of 3.48. The company has a market cap of $12.26 billion, a price-to-earnings ratio of 137.30, a price-to-earnings-growth ratio of 8.26 and a beta of 1.06.

Guidewire Software (NYSE:GWRE) last announced its quarterly earnings results on Wednesday, December 3rd. The technology company reported $0.66 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.66. Guidewire Software had a net margin of 7.23% and a return on equity of 10.15%. The firm had revenue of $332.64 million during the quarter, compared to analysts’ expectations of $316.62 million. During the same period in the prior year, the company earned $0.43 EPS. The firm’s revenue was up 26.5% on a year-over-year basis. Sell-side analysts forecast that Guidewire Software, Inc. will post 0.52 earnings per share for the current fiscal year.

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

Insider Activity

In related news, CEO Michael George Rosenbaum sold 1,200 shares of Guidewire Software stock in a transaction on Monday, February 23rd. The shares were sold at an average price of $125.50, for a total transaction of $150,600.00. Following the sale, the chief executive officer owned 229,543 shares of the company’s stock, valued at $28,807,646.50. The trade was a 0.52% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, insider James Winston King sold 1,860 shares of the business’s stock in a transaction on Thursday, December 18th. The stock was sold at an average price of $195.00, for a total transaction of $362,700.00. Following the completion of the transaction, the insider owned 33,702 shares in the company, valued at $6,571,890. This represents a 5.23% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 47,160 shares of company stock worth $8,917,644 over the last 90 days. Company insiders own 0.46% of the company’s stock.

Institutional Trading of Guidewire Software

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