Guidewire Software Target of Unusually High Options Trading (NYSE:GWRE)

Guidewire Software, Inc. (NYSE:GWRE) saw unusually large options trading activity on Wednesday. Traders purchased 1,297 call options on the company. This represents an increase of approximately 1,563% compared to the average daily volume of 78 call options.

Guidewire Software Stock Down 0.7%

Shares of GWRE opened at $148.58 on Thursday. The company has a current ratio of 2.93, a quick ratio of 2.93 and a debt-to-equity ratio of 0.45. Guidewire Software has a 12 month low of $120.37 and a 12 month high of $272.60. The firm’s 50 day moving average is $145.44 and its 200-day moving average is $191.48. The stock has a market capitalization of $12.58 billion, a PE ratio of 67.54, a P/E/G ratio of 6.45 and a beta of 1.05.

Guidewire Software (NYSE:GWRE) last issued its quarterly earnings results on Thursday, March 5th. The technology company reported $1.17 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.77 by $0.40. The business had revenue of $359.10 million during the quarter, compared to analysts’ expectations of $342.88 million. Guidewire Software had a return on equity of 13.44% and a net margin of 14.11%.The firm’s revenue for the quarter was up 24.0% compared to the same quarter last year. During the same period in the previous year, the company posted $0.51 earnings per share. Equities research analysts forecast that Guidewire Software will post 0.52 EPS for the current year.

Guidewire Software declared that its Board of Directors has authorized a stock buyback plan on Thursday, January 8th that authorizes the company to repurchase $500.00 million in shares. This repurchase authorization authorizes the technology company to repurchase up to 3.1% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company’s board of directors believes its shares are undervalued.

Analyst Ratings Changes

Several equities analysts have recently commented on the company. Oppenheimer decreased their target price on Guidewire Software from $300.00 to $250.00 and set an “outperform” rating on the stock in a research report on Tuesday, February 24th. Citizens Jmp restated a “market outperform” rating and issued a $281.00 price target on shares of Guidewire Software in a research note on Wednesday, December 10th. Royal Bank Of Canada decreased their price objective on Guidewire Software from $300.00 to $250.00 and set an “outperform” rating on the stock in a report on Friday, March 6th. BTIG Research increased their price objective on Guidewire Software from $175.00 to $200.00 and gave the stock a “buy” rating in a research report on Friday, March 6th. Finally, Zacks Research raised Guidewire Software from a “hold” rating to a “strong-buy” rating in a report on Friday, March 13th. One analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Guidewire Software currently has an average rating of “Moderate Buy” and a consensus target price of $249.85.

Insider Activity at Guidewire Software

In related news, insider James Winston King sold 1,001 shares of Guidewire Software stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $163.86, for a total transaction of $164,023.86. Following the completion of the sale, the insider owned 32,701 shares of the company’s stock, valued at approximately $5,358,385.86. The trade was a 2.97% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, President John P. Mullen sold 6,576 shares of the company’s stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $163.86, for a total transaction of $1,077,543.36. Following the completion of the transaction, the president owned 135,407 shares in the company, valued at approximately $22,187,791.02. This trade represents a 4.63% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 30,295 shares of company stock worth $4,819,906 in the last quarter. 0.46% of the stock is owned by corporate insiders.

Institutional Trading of Guidewire Software

Large investors have recently modified their holdings of the stock. Wealth Enhancement Advisory Services LLC increased its stake in shares of Guidewire Software by 57.0% in the third quarter. Wealth Enhancement Advisory Services LLC now owns 51,694 shares of the technology company’s stock valued at $11,735,000 after buying an additional 18,774 shares during the period. Scalar Gauge Management LLC acquired a new stake in Guidewire Software during the 3rd quarter worth approximately $5,287,000. American Century Companies Inc. boosted its position in Guidewire Software by 3.4% during the 3rd quarter. American Century Companies Inc. now owns 520,390 shares of the technology company’s stock worth $119,617,000 after buying an additional 17,104 shares during the period. Dynamic Technology Lab Private Ltd grew its holdings in Guidewire Software by 901.1% during the 3rd quarter. Dynamic Technology Lab Private Ltd now owns 9,110 shares of the technology company’s stock worth $2,094,000 after acquiring an additional 8,200 shares during the last quarter. Finally, BDF Gestion bought a new stake in Guidewire Software during the 4th quarter worth approximately $1,803,000.

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.