Guidewire Software Sees Unusually High Options Volume (NYSE:GWRE)

Guidewire Software, Inc. (NYSE:GWRE) was the recipient of some unusual options trading activity on Wednesday. Investors acquired 1,297 call options on the company. This is an increase of 1,563% compared to the typical daily volume of 78 call options.

Analyst Upgrades and Downgrades

Several equities analysts recently weighed in on GWRE shares. Zacks Research downgraded shares of Guidewire Software from a “strong-buy” rating to a “hold” rating in a report on Tuesday, December 2nd. DA Davidson raised shares of Guidewire Software from a “neutral” rating to a “buy” rating and upped their price objective for the company from $246.00 to $250.00 in a report on Wednesday, December 17th. Wells Fargo & Company cut their price objective on shares of Guidewire Software from $250.00 to $210.00 and set an “overweight” rating on the stock in a research note on Wednesday. Citizens Jmp restated a “market outperform” rating and set a $281.00 target price on shares of Guidewire Software in a research report on Wednesday, December 10th. Finally, Wall Street Zen lowered shares of Guidewire Software from a “buy” rating to a “hold” rating in a report on Friday, November 28th. Twelve investment analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $266.64.

Guidewire Software Stock Up 1.8%

GWRE stock opened at $132.01 on Thursday. Guidewire Software has a one year low of $121.88 and a one year high of $272.60. The company has a debt-to-equity ratio of 0.44, a quick ratio of 3.48 and a current ratio of 3.48. The firm’s fifty day moving average is $185.11 and its 200 day moving average is $213.65. The firm has a market cap of $11.22 billion, a PE ratio of 125.73, a P/E/G ratio of 8.45 and a beta of 1.06.

Guidewire Software (NYSE:GWRE) last posted its earnings results on Wednesday, December 3rd. The technology company reported $0.66 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.66. Guidewire Software had a net margin of 7.23% and a return on equity of 10.15%. The business had revenue of $332.64 million for the quarter, compared to analyst estimates of $316.62 million. During the same period in the prior year, the company posted $0.43 EPS. The company’s revenue for the quarter was up 26.5% on a year-over-year basis. On average, research analysts forecast that Guidewire Software will post 0.52 EPS for the current year.

Guidewire Software announced that its Board of Directors has approved a stock repurchase plan on Thursday, January 8th that allows the company to repurchase $500.00 million in outstanding shares. This repurchase authorization allows the technology company to repurchase up to 3.1% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company’s management believes its shares are undervalued.

Insider Transactions at Guidewire Software

In related news, CEO Michael George Rosenbaum sold 6,015 shares of the firm’s stock in a transaction on Tuesday, December 16th. The stock was sold at an average price of $192.08, for a total value of $1,155,361.20. Following the completion of the transaction, the chief executive officer owned 240,743 shares in the company, valued at $46,241,915.44. This trade represents a 2.44% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, insider James Winston King sold 1,860 shares of Guidewire Software stock in a transaction dated Thursday, December 18th. The stock was sold at an average price of $195.00, for a total value of $362,700.00. Following the sale, the insider directly owned 33,702 shares of the company’s stock, valued at approximately $6,571,890. This represents a 5.23% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 48,358 shares of company stock valued at $9,409,729 in the last quarter. Insiders own 0.46% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. IFP Advisors Inc grew its stake in Guidewire Software by 4.6% in the 3rd quarter. IFP Advisors Inc now owns 1,104 shares of the technology company’s stock valued at $254,000 after acquiring an additional 49 shares during the period. Earned Wealth Advisors LLC lifted its holdings in Guidewire Software by 5.4% during the third quarter. Earned Wealth Advisors LLC now owns 989 shares of the technology company’s stock valued at $227,000 after purchasing an additional 51 shares in the last quarter. Smartleaf Asset Management LLC grew its position in shares of Guidewire Software by 9.3% in the third quarter. Smartleaf Asset Management LLC now owns 624 shares of the technology company’s stock valued at $145,000 after purchasing an additional 53 shares during the period. PDS Planning Inc grew its position in shares of Guidewire Software by 6.4% in the third quarter. PDS Planning Inc now owns 911 shares of the technology company’s stock valued at $209,000 after purchasing an additional 55 shares during the period. Finally, American Trust increased its stake in shares of Guidewire Software by 3.9% during the third quarter. American Trust now owns 1,632 shares of the technology company’s stock worth $375,000 after purchasing an additional 61 shares in the last quarter.

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.