Guidewire Software (NYSE:GWRE) Board of Directors Initiates Stock Buyback Program

Guidewire Software (NYSE:GWRE) announced that its Board of Directors has approved a share buyback program on Thursday, January 8th, RTT News reports. The company plans to buyback $500.00 million in outstanding shares. This buyback authorization allows the technology company to repurchase up to 3.1% of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s management believes its stock is undervalued.

Guidewire Software Stock Performance

NYSE GWRE traded down $7.09 on Thursday, hitting $180.59. 1,390,902 shares of the company’s stock traded hands, compared to its average volume of 995,486. The firm has a market capitalization of $15.35 billion, a PE ratio of 172.00, a P/E/G ratio of 12.23 and a beta of 1.08. Guidewire Software has a 1-year low of $165.08 and a 1-year high of $272.60. The firm’s 50-day moving average price is $207.89 and its two-hundred day moving average price is $223.12. 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 EPS for the quarter, hitting the consensus estimate of $0.66. The company had revenue of $332.64 million during the quarter, compared to analyst estimates of $316.62 million. Guidewire Software had a net margin of 7.23% and a return on equity of 10.15%. The firm’s revenue was up 26.5% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.43 EPS. As a group, analysts expect that Guidewire Software will post 0.52 EPS for the current year.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on GWRE. Citigroup raised their price target on shares of Guidewire Software from $242.00 to $245.00 and gave the company a “neutral” rating in a report on Friday, December 5th. Wall Street Zen cut shares of Guidewire Software from a “buy” rating to a “hold” rating in a research note on Friday, November 28th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Guidewire Software in a report on Wednesday, October 8th. Zacks Research downgraded Guidewire Software from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, December 2nd. Finally, Citizens Jmp reiterated a “market outperform” rating and set a $281.00 price objective on shares of Guidewire Software in a research report on Wednesday, December 10th. One analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $269.50.

Insider Activity at Guidewire Software

In other Guidewire Software news, insider James Winston King sold 1,860 shares of the 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 transaction, the insider owned 33,702 shares of the company’s stock, valued at $6,571,890. This represents a 5.23% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, CEO Michael George Rosenbaum sold 1,400 shares of Guidewire Software stock in a transaction dated Monday, December 29th. The shares were sold at an average price of $204.95, for a total value of $286,930.00. Following the completion of the sale, the chief executive officer owned 237,943 shares of the company’s stock, valued at $48,766,417.85. This trade represents a 0.58% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 52,740 shares of company stock worth $10,859,052 in the last ninety days. Company insiders own 0.46% of the company’s stock.

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.