Guidewire Software (NYSE:GWRE) Trading Up 9.6% – Here’s What Happened

Guidewire Software, Inc. (NYSE:GWRE) shares shot up 9.6% on Wednesday . The company traded as high as $136.71 and last traded at $137.1490. 632,056 shares changed hands during mid-day trading, a decline of 62% from the average session volume of 1,682,174 shares. The stock had previously closed at $125.09.

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on GWRE shares. Royal Bank Of Canada dropped their price target on Guidewire Software from $300.00 to $250.00 and set an “outperform” rating for the company in a research report on Friday, March 6th. Weiss Ratings restated a “hold (c)” rating on shares of Guidewire Software in a report on Thursday, January 22nd. Wells Fargo & Company cut their target price on shares of Guidewire Software from $250.00 to $210.00 and set an “overweight” rating for the company in a research report on Wednesday, February 4th. Zacks Research upgraded shares of Guidewire Software from a “hold” rating to a “strong-buy” rating in a research report on Friday, March 13th. Finally, Stifel Nicolaus cut their price objective on Guidewire Software from $300.00 to $250.00 and set a “buy” rating for the company in a research report on Friday, March 6th. One investment analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, three have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $249.85.

Guidewire Software Trading Up 1.2%

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 firm has a market cap of $11.92 billion, a price-to-earnings ratio of 64.53, a price-to-earnings-growth ratio of 5.89 and a beta of 1.05. The business’s 50-day moving average price is $143.13 and its two-hundred day moving average price is $183.71.

Guidewire Software (NYSE:GWRE) last announced its earnings results on Thursday, March 5th. The technology company reported $1.17 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.77 by $0.40. The firm had revenue of $359.10 million for the quarter, compared to analyst estimates of $342.88 million. Guidewire Software had a net margin of 14.11% and a return on equity of 13.44%. Guidewire Software’s revenue was up 24.0% compared to the same quarter last year. During the same quarter last year, the business earned $0.51 earnings per share. Equities analysts expect that Guidewire Software, Inc. will post 0.52 earnings per share for the current year.

Guidewire Software announced that its board has approved a stock repurchase plan on Thursday, January 8th that allows the company to repurchase $500.00 million in shares. This repurchase authorization allows the technology company to reacquire up to 3.1% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s board of directors believes its shares are undervalued.

Insider Activity

In related news, CEO Michael George Rosenbaum sold 4,737 shares of the company’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 transaction of $776,204.82. Following the completion of the transaction, the chief executive officer owned 221,206 shares of the company’s stock, valued at approximately $36,246,815.16. This represents a 2.10% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, President John P. Mullen sold 6,576 shares of the stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $163.86, for a total transaction of $1,077,543.36. Following the transaction, the president directly owned 135,407 shares in the company, valued at approximately $22,187,791.02. This represents a 4.63% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 31,279 shares of company stock valued at $4,887,686 in the last 90 days. 0.46% of the stock is currently owned by insiders.

Institutional Trading of Guidewire Software

Institutional investors and hedge funds have recently made changes to their positions in the company. IFP Advisors Inc grew its position in Guidewire Software by 4.6% during the third quarter. IFP Advisors Inc now owns 1,104 shares of the technology company’s stock valued at $254,000 after acquiring an additional 49 shares during the period. Earned Wealth Advisors LLC lifted its stake in shares of Guidewire Software by 5.4% in the 3rd quarter. Earned Wealth Advisors LLC now owns 989 shares of the technology company’s stock valued at $227,000 after purchasing an additional 51 shares in the last quarter. Smartleaf Asset Management LLC grew its holdings in shares of Guidewire Software by 9.3% during the 3rd quarter. Smartleaf Asset Management LLC now owns 624 shares of the technology company’s stock worth $145,000 after purchasing an additional 53 shares during the period. PDS Planning Inc raised its holdings in Guidewire Software by 6.4% in the third quarter. PDS Planning Inc now owns 911 shares of the technology company’s stock valued at $209,000 after buying an additional 55 shares during the period. Finally, American Trust raised its holdings in Guidewire Software by 3.9% in the third quarter. American Trust now owns 1,632 shares of the technology company’s stock valued at $375,000 after buying an additional 61 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.