Guidewire Software (NYSE:GWRE) Shares Down 11.4% – Should You Sell?

Guidewire Software, Inc. (NYSE:GWRE) fell 11.4% during mid-day trading on Thursday . The stock traded as low as $129.03 and last traded at $126.7370. 144,686 shares traded hands during trading, a decline of 91% from the average session volume of 1,634,589 shares. The stock had previously closed at $142.99.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on GWRE. Weiss Ratings restated a “hold (c)” rating on shares of Guidewire Software in a research report on Thursday, January 22nd. Stifel Nicolaus cut their target price on shares of Guidewire Software from $300.00 to $250.00 and set a “buy” rating for the company in a research report on Friday, March 6th. BTIG Research lifted their price target on shares of Guidewire Software from $175.00 to $200.00 and gave the company a “buy” rating in a report on Friday, March 6th. Royal Bank Of Canada lowered their price target on shares of Guidewire Software from $300.00 to $250.00 and set an “outperform” rating on the stock in a report on Friday, March 6th. Finally, Wells Fargo & Company lowered 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. One equities research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $249.85.

Guidewire Software Price Performance

The firm’s fifty day moving average price is $144.12 and its 200 day moving average price is $180.91. The company has a quick ratio of 2.93, a current ratio of 2.93 and a debt-to-equity ratio of 0.45. The stock has a market cap of $10.97 billion, a PE ratio of 58.89, a P/E/G ratio of 6.08 and a beta of 1.05.

Guidewire Software (NYSE:GWRE) last released its earnings results on Thursday, March 5th. The technology company reported $1.17 EPS for the quarter, topping the consensus estimate of $0.77 by $0.40. Guidewire Software had a net margin of 14.11% and a return on equity of 13.44%. The firm had revenue of $359.10 million for the quarter, compared to the consensus estimate of $342.88 million. During the same quarter in the previous year, the firm earned $0.51 earnings per share. The company’s quarterly revenue was up 24.0% compared to the same quarter last year. As a group, equities analysts expect that Guidewire Software, Inc. will post 1.84 EPS for the current fiscal year.

Guidewire Software declared that its board has approved a stock repurchase program on Thursday, January 8th that authorizes the company to repurchase $500.00 million in outstanding shares. This repurchase authorization authorizes the technology company to buy up to 3.1% of its shares through open market purchases. Shares repurchase programs are typically a sign that the company’s board believes its shares are undervalued.

Insider Transactions at Guidewire Software

In other news, President John P. Mullen sold 6,576 shares of the business’s stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $163.86, for a total value of $1,077,543.36. Following the transaction, the president owned 135,407 shares of the company’s stock, valued at approximately $22,187,791.02. The trade was a 4.63% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Michael George Rosenbaum sold 4,737 shares of the business’s stock in a transaction on Tuesday, March 17th. The stock was 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 directly owned 221,206 shares in the company, valued at $36,246,815.16. This trade represents a 2.10% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 31,279 shares of company stock valued at $4,867,874. 0.46% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Guidewire Software

Hedge funds have recently bought and sold shares of the business. Measured Wealth Private Client Group LLC purchased a new stake in Guidewire Software during the third quarter valued at $29,000. Root Financial Partners LLC purchased a new stake in Guidewire Software during the third quarter valued at $29,000. Advisors Asset Management Inc. purchased a new stake in Guidewire Software during the first quarter valued at $25,000. Cornerstone Planning Group LLC raised its stake in Guidewire Software by 620.0% during the third quarter. Cornerstone Planning Group LLC now owns 144 shares of the technology company’s stock valued at $34,000 after purchasing an additional 124 shares in the last quarter. Finally, Hazlett Burt & Watson Inc. purchased a new stake in Guidewire Software during the third quarter valued at $35,000.

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.