Guidewire Software (NYSE:GWRE) Shares Gap Up Following Earnings Beat

Guidewire Software, Inc. (NYSE:GWRE)’s stock price gapped up prior to trading on Wednesday following a better than expected earnings announcement. The stock had previously closed at $218.18, but opened at $246.95. Guidewire Software shares last traded at $256.39, with a volume of 928,469 shares traded.

The technology company reported $0.88 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.47 by $0.41. The business had revenue of $293.51 million during the quarter, compared to analysts’ expectations of $286.40 million. Guidewire Software had a net margin of 2.91% and a return on equity of 2.38%. The firm’s revenue for the quarter was up 22.0% on a year-over-year basis. During the same quarter last year, the company posted $0.26 EPS.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on the company. DA Davidson cut Guidewire Software from a “strong-buy” rating to a “hold” rating and set a $226.00 price target for the company. in a research note on Thursday, May 22nd. The Goldman Sachs Group boosted their target price on shares of Guidewire Software from $210.00 to $240.00 and gave the company a “buy” rating in a report on Monday, February 10th. Needham & Company LLC restated a “hold” rating on shares of Guidewire Software in a research report on Wednesday. Bank of America raised their price objective on shares of Guidewire Software from $135.00 to $160.00 and gave the company an “underperform” rating in a research report on Wednesday. Finally, Robert W. Baird raised their target price on shares of Guidewire Software from $230.00 to $236.00 and gave the stock an “outperform” rating in a report on Friday, March 7th. One analyst has rated the stock with a sell rating, three have given a hold rating and nine have given a buy rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $220.75.

Insider Activity at Guidewire Software

In other news, CEO Michael George Rosenbaum sold 1,400 shares of the firm’s stock in a transaction on Tuesday, May 27th. The stock was sold at an average price of $212.02, for a total transaction of $296,828.00. Following the completion of the sale, the chief executive officer now directly owns 248,793 shares of the company’s stock, valued at $52,749,091.86. This trade represents a 0.56% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, President John P. Mullen sold 2,300 shares of the stock in a transaction that occurred on Tuesday, April 1st. The stock was sold at an average price of $187.95, for a total transaction of $432,285.00. Following the completion of the sale, the president now directly owns 164,030 shares of the company’s stock, valued at $30,829,438.50. This trade represents a 1.38% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 28,671 shares of company stock worth $5,471,104. 0.48% of the stock is owned by company insiders.

Institutional Trading of Guidewire Software

A number of institutional investors and hedge funds have recently modified their holdings of GWRE. Strs Ohio acquired a new stake in shares of Guidewire Software in the first quarter valued at about $1,336,000. Advisors Capital Management LLC increased its position in Guidewire Software by 3.8% during the first quarter. Advisors Capital Management LLC now owns 43,253 shares of the technology company’s stock worth $8,104,000 after acquiring an additional 1,599 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in shares of Guidewire Software by 8.7% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 301,940 shares of the technology company’s stock valued at $56,571,000 after buying an additional 24,287 shares during the period. Vancity Investment Management Ltd bought a new stake in Guidewire Software during the first quarter worth about $1,066,000. Finally, United Services Automobile Association acquired a new position in Guidewire Software during the first quarter valued at approximately $1,014,000.

Guidewire Software Stock Performance

The company has a debt-to-equity ratio of 0.53, a current ratio of 2.66 and a quick ratio of 2.66. The stock has a market cap of $21.84 billion, a P/E ratio of 712.20, a PEG ratio of 37.21 and a beta of 1.18. The stock has a 50-day simple moving average of $200.46 and a 200-day simple moving average of $194.29.

About Guidewire Software

Guidewire Software, Inc provides a platform for property and casualty (P&C) insurers worldwide. The company offers Guidewire InsuranceSuite Cloud, such as PolicyCenter Cloud, BillingCenter Cloud, and ClaimCenter Cloud applications. It also provides Guidewire InsuranceNow, a cloud-based platform that offers policy, billing, and claims management functionality to insurers; and Guidewire InsuranceSuite for Self-Managed.