Goosehead Insurance (NASDAQ:GSHD) Shares Gap Down – Here’s Why

Goosehead Insurance (NASDAQ:GSHD) shares gapped down prior to trading on Tuesday. The stock had previously closed at $54.69, but opened at $45.66. Goosehead Insurance shares last traded at $46.0260, with a volume of 72,159 shares trading hands.

Key Goosehead Insurance News

Here are the key news stories impacting Goosehead Insurance this week:

• Positive Sentiment: Goosehead guided to third-quarter revenue of $108.8 million–$110.8 million, above the $105.1 million consensus estimate, and reaffirmed its full-year 2026 guidance. Goosehead preliminary third-quarter results
• Positive Sentiment: Piper Sandler raised its price target from $48 to $56, while maintaining a neutral rating. Piper Sandler price target update
• Negative Sentiment: The company said certain previously issued financial statements dating back to 2023 should no longer be relied upon and must be restated to correct GAAP departures. The size and implications of the corrections are not specified in the provided report; the delayed full earnings release adds uncertainty. Goosehead preliminary third-quarter results
• Negative Sentiment: Kehoe Law Firm said it is investigating potential securities claims following the restatement disclosure. The investigation is not itself a finding of wrongdoing, but may add to investor concerns. Kehoe Law Firm investigation announcement

Analyst Ratings Changes

GSHD has been the subject of several recent analyst reports. UBS Group raised their price objective on shares of Goosehead Insurance from $70.00 to $72.00 and gave the stock a “buy” rating in a report on Monday, July 27th. Piper Sandler increased their price target on shares of Goosehead Insurance from $48.00 to $56.00 and gave the stock a “neutral” rating in a research report on Tuesday. Citizens Jmp decreased their price target on Goosehead Insurance from $100.00 to $80.00 and set a “market outperform” rating for the company in a research note on Monday, October 12th. Cantor Fitzgerald reissued an “overweight” rating and issued a $76.00 price objective on shares of Goosehead Insurance in a report on Thursday, July 23rd. Finally, Zacks Research cut Goosehead Insurance from a “hold” rating to a “strong sell” rating in a research note on Thursday, October 22nd. One analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, six have assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and an average price target of $65.08.

Goosehead Insurance Price Performance

The stock has a market cap of $1.65 billion, a price-to-earnings ratio of 33.90, a P/E/G ratio of 2.13 and a beta of 1.51. The business’s fifty day simple moving average is $51.14 and its 200 day simple moving average is $50.53.

Insider Transactions at Goosehead Insurance

In related news, major shareholder Adrienne Kebodeaux sold 7,000 shares of the business’s stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $70.00, for a total transaction of $490,000.00. Following the completion of the sale, the insider owned 273,027 shares of the company’s stock, valued at $19,111,890. This represents a 2.50% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, major shareholder Durable Capital Partners Lp acquired 150,000 shares of the company’s stock in a transaction that occurred on Tuesday, September 22nd. The shares were acquired at an average price of $47.32 per share, for a total transaction of $7,098,000.00. Following the purchase, the insider owned 2,720,260 shares of the company’s stock, valued at $128,722,703.20. This trade represents a 5.84% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Company insiders own 38.07% of the company’s stock.

Institutional Trading of Goosehead Insurance

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Janus Henderson Group PLC boosted its position in Goosehead Insurance by 3,485.1% during the 1st quarter. Janus Henderson Group PLC now owns 386,906 shares of the company’s stock valued at $16,506,000 after purchasing an additional 376,114 shares during the period. Bank of America Corp DE increased its position in Goosehead Insurance by 28.2% in the first quarter. Bank of America Corp DE now owns 329,333 shares of the company’s stock worth $14,049,000 after buying an additional 72,527 shares during the period. Principal Financial Group Inc. increased its position in Goosehead Insurance by 23.2% in the first quarter. Principal Financial Group Inc. now owns 219,745 shares of the company’s stock worth $9,374,000 after buying an additional 41,334 shares during the period. Sei Investments Co. increased its position in Goosehead Insurance by 9.4% in the first quarter. Sei Investments Co. now owns 163,452 shares of the company’s stock worth $6,973,000 after buying an additional 14,051 shares during the period. Finally, Bank of New York Mellon Corp bought a new stake in Goosehead Insurance in the second quarter valued at $6,545,000.

About Goosehead Insurance

Goosehead Insurance is an independent insurance agency that distributes personal insurance products through a network of company-operated and franchised locations. The company works with multiple insurance carriers, helping customers compare coverage options and obtain policies.

Its offerings include homeowners, automobile, flood, umbrella and other personal insurance products. Goosehead also provides technology and support services to its agents, including tools for quoting, policy management and customer service.

Founded in 2003 by Mark and Robyn Jones, Goosehead is based in Westlake, Texas, and serves customers across the United States.