Guidewire Software (NYSE:GWRE) Shares Down 5.4% After Analyst Downgrade

Shares of Guidewire Software, Inc. (NYSE:GWRE) were down 5.4% during trading on Monday after DA Davidson lowered their price target on the stock from $246.00 to $222.00. DA Davidson currently has a buy rating on the stock. Guidewire Software traded as low as $128.10 and last traded at $128.7460. Approximately 310,370 shares were traded during trading, a decline of 81% from the average daily volume of 1,599,491 shares. The stock had previously closed at $136.06.

A number of other analysts have also recently issued reports on GWRE. Royal Bank Of Canada reduced their target price on shares of Guidewire Software from $250.00 to $215.00 and set an “outperform” rating for the company in a research note on Friday. Citizens Jmp cut their price target on shares of Guidewire Software from $300.00 to $220.00 and set a “market outperform” rating on the stock in a report on Friday. Stifel Nicolaus reduced their price objective on shares of Guidewire Software from $225.00 to $200.00 and set a “buy” rating for the company in a research note on Friday. The Goldman Sachs Group decreased their price objective on shares of Guidewire Software from $255.00 to $225.00 and set a “buy” rating for the company in a report on Friday. Finally, Zacks Research downgraded shares of Guidewire Software from a “strong-buy” rating to a “hold” rating in a research report on Monday, May 25th. Eleven analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $229.00.

Insiders Place Their Bets

In other news, CEO Michael George Rosenbaum sold 1,200 shares of Guidewire Software stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $158.92, for a total value of $190,704.00. Following the transaction, the chief executive officer owned 208,006 shares of the company’s stock, valued at $33,056,313.52. This trade represents a 0.57% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 32,479 shares of company stock valued at $5,015,270. 0.46% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of GWRE. Dynamic Technology Lab Private Ltd lifted its holdings in shares of Guidewire Software by 901.1% during the third quarter. Dynamic Technology Lab Private Ltd now owns 9,110 shares of the technology company’s stock worth $2,094,000 after buying an additional 8,200 shares during the last quarter. Comerica Bank boosted its position in shares of Guidewire Software by 52.0% in the fourth quarter. Comerica Bank now owns 78,659 shares of the technology company’s stock valued at $15,811,000 after acquiring an additional 26,912 shares during the period. BDF Gestion acquired a new stake in shares of Guidewire Software in the fourth quarter worth $1,803,000. American Century Companies Inc. grew its stake in shares of Guidewire Software by 3.4% in the third quarter. American Century Companies Inc. now owns 520,390 shares of the technology company’s stock worth $119,617,000 after acquiring an additional 17,104 shares during the last quarter. Finally, Fieldview Capital Management LLC bought a new position in Guidewire Software during the third quarter worth $2,862,000.

Guidewire Software Trading Down 5.3%

The stock has a market capitalization of $10.90 billion, a price-to-earnings ratio of 69.57 and a beta of 0.93. The company’s 50 day moving average is $140.07 and its 200 day moving average is $160.52. The company has a debt-to-equity ratio of 0.51, a quick ratio of 2.93 and a current ratio of 2.44.

Guidewire Software (NYSE:GWRE) last posted its quarterly earnings results on Thursday, June 4th. The technology company reported $0.82 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.74 by $0.08. Guidewire Software had a net margin of 11.25% and a return on equity of 12.62%. The company had revenue of $372.54 million for the quarter, compared to analyst estimates of $355.92 million. During the same period last year, the business posted $0.88 EPS. The business’s quarterly revenue was up 26.9% on a year-over-year basis. On average, research analysts forecast that Guidewire Software, Inc. will post 1.84 EPS for the current fiscal year.

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.