The Goldman Sachs Group Issues Pessimistic Forecast for Guidewire Software (NYSE:GWRE) Stock Price

Guidewire Software (NYSE:GWRE) had its price target dropped by equities researchers at The Goldman Sachs Group from $255.00 to $225.00 in a note issued to investors on Friday,Benzinga reports. The firm currently has a “buy” rating on the technology company’s stock. The Goldman Sachs Group’s target price would suggest a potential upside of 65.44% from the stock’s previous close.

A number of other research firms have also weighed in on GWRE. Oppenheimer lowered their price objective on Guidewire Software from $250.00 to $180.00 and set an “outperform” rating on the stock in a research note on Monday, May 18th. BTIG Research restated a “buy” rating and set a $200.00 price objective on shares of Guidewire Software in a research report on Tuesday. Royal Bank Of Canada cut their price target on shares of Guidewire Software from $250.00 to $215.00 and set an “outperform” rating for the company in a report on Friday. Weiss Ratings reiterated a “hold (c)” rating on shares of Guidewire Software in a research report on Wednesday. Finally, Zacks Research downgraded Guidewire Software from a “strong-buy” rating to a “hold” rating in a research report on Monday, May 25th. Eleven equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat.com, Guidewire Software has a consensus rating of “Moderate Buy” and an average price target of $231.00.

Guidewire Software Stock Performance

GWRE stock traded down $15.17 during trading on Friday, hitting $136.00. 2,122,655 shares of the company traded hands, compared to its average volume of 1,593,047. The company has a debt-to-equity ratio of 0.45, a current ratio of 2.93 and a quick ratio of 2.93. The company has a market cap of $11.51 billion, a PE ratio of 61.66 and a beta of 0.93. The stock’s 50-day simple moving average is $140.32 and its 200 day simple moving average is $161.08. Guidewire Software has a 1 year low of $115.57 and a 1 year high of $272.60.

Guidewire Software (NYSE:GWRE) last issued its earnings results on Thursday, June 4th. The technology company reported $0.82 EPS for the quarter, beating analysts’ consensus estimates of $0.79 by $0.03. Guidewire Software had a net margin of 14.11% and a return on equity of 13.44%. The business had revenue of $372.54 million during the quarter, compared to analysts’ expectations of $355.92 million. During the same period in the prior year, the business earned $0.88 earnings per share. The company’s quarterly revenue was up 26.9% compared to the same quarter last year. On average, equities analysts expect that Guidewire Software will post 1.84 earnings per share for the current fiscal year.

Insider Buying and Selling at Guidewire Software

In other Guidewire Software news, CFO Jeffrey Elliott Cooper sold 4,757 shares of the business’s stock in a transaction on Friday, March 13th. The shares were sold at an average price of $158.72, for a total value of $755,031.04. Following the completion of the transaction, the chief financial officer owned 67,996 shares in the company, valued at $10,792,325.12. The trade was a 6.54% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, President John P. Mullen sold 6,576 shares of the company’s stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $163.86, for a total value of $1,077,543.36. Following the sale, the president directly owned 135,407 shares in the company, valued at $22,187,791.02. This represents a 4.63% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 33,679 shares of company stock valued at $5,214,878 in the last 90 days. Company insiders own 0.46% of the company’s stock.

Institutional Investors Weigh In On Guidewire Software

A number of hedge funds have recently bought and sold shares of the stock. Measured Wealth Private Client Group LLC acquired a new position in shares of Guidewire Software during the third quarter worth about $29,000. Advisors Asset Management Inc. acquired a new stake in Guidewire Software in the first quarter valued at approximately $25,000. Cornerstone Planning Group LLC lifted its stake in Guidewire Software by 620.0% in the third quarter. Cornerstone Planning Group LLC now owns 144 shares of the technology company’s stock worth $34,000 after acquiring an additional 124 shares during the last quarter. Flagship Harbor Advisors LLC acquired a new position in Guidewire Software during the 4th quarter worth approximately $36,000. Finally, Leonteq Securities AG acquired a new position in Guidewire Software during the 1st quarter worth approximately $36,000.

Key Guidewire Software News

Here are the key news stories impacting Guidewire Software this week:

• Positive Sentiment: Guidewire beat fiscal Q3 expectations with EPS of $0.82 and revenue of $372.5 million, while revenue rose 26.9% year over year and ARR increased 19%, highlighting solid demand for its insurance software platform. Article Title
• Positive Sentiment: The company lifted full-year revenue, profit and cash flow guidance, and its Q4 revenue outlook of $396 million to $406 million was above the consensus estimate, reinforcing management’s confidence in continued momentum. Article Title
• Neutral Sentiment: Several analysts trimmed price targets after the results, including Stifel, RBC, Wells Fargo and Citizens JMP, but most kept bullish ratings, suggesting valuation concerns more than a change in long-term outlook. Article Title
• Negative Sentiment: Despite the earnings beat, the stock fell as the market appears focused on software-sector pressure and the possibility that expectations had already run ahead of results. Article Title

Guidewire Software Company Profile

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.