Guidewire Software (NYSE:GWRE) Announces Earnings Results, Misses Estimates By $0.38 EPS

Guidewire Software (NYSE:GWRE) released its earnings results on Thursday. The technology company reported $0.55 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.93 by ($0.38), Zacks reports. Guidewire Software had a net margin of 11.25% and a return on equity of 12.62%.

Guidewire Software Stock Up 4.9%

NYSE:GWRE traded up $9.46 during trading hours on Thursday, reaching $202.22. The company had a trading volume of 1,933,571 shares, compared to its average volume of 1,567,772. Guidewire Software has a twelve month low of $102.30 and a twelve month high of $272.60. The company has a quick ratio of 2.44, a current ratio of 2.44 and a debt-to-equity ratio of 0.51. The firm has a market cap of $16.84 billion, a price-to-earnings ratio of 109.31 and a beta of 0.96. The business’s 50-day simple moving average is $158.37 and its two-hundred day simple moving average is $145.73.

Analysts Set New Price Targets

A number of analysts have weighed in on GWRE shares. DA Davidson decreased their price target on Guidewire Software from $246.00 to $222.00 and set a “buy” rating for the company in a report on Monday, June 8th. Oppenheimer boosted their price objective on Guidewire Software from $180.00 to $200.00 and gave the company an “outperform” rating in a research note on Monday, August 17th. Guggenheim raised their target price on Guidewire Software from $180.00 to $210.00 and gave the stock a “buy” rating in a research note on Thursday, August 27th. Stifel Nicolaus lowered their target price on Guidewire Software from $225.00 to $200.00 and set a “buy” rating for the company in a report on Friday, June 5th. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Guidewire Software in a report on Monday. Thirteen investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to data from MarketBeat, Guidewire Software presently has a consensus rating of “Moderate Buy” and an average target price of $223.93.

Insider Activity

In other news, CAO David Peterson sold 2,500 shares of the stock in a transaction dated Thursday, August 27th. The shares were sold at an average price of $200.00, for a total transaction of $500,000.00. Following the transaction, the chief accounting officer owned 9,787 shares of the company’s stock, valued at $1,957,400. This represents a 20.35% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Jeffrey Cooper sold 2,594 shares of the stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $118.74, for a total transaction of $308,011.56. Following the transaction, the chief financial officer directly owned 63,467 shares in the company, valued at $7,536,071.58. This trade represents a 3.93% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders have sold 47,093 shares of company stock valued at $7,185,902. Corporate insiders own 0.46% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Advisors Asset Management Inc. acquired a new stake in Guidewire Software in the first quarter valued at approximately $25,000. Measured Wealth Private Client Group LLC acquired a new stake in Guidewire Software in the 3rd quarter valued at $29,000. Daiwa Securities Group Inc. acquired a new stake in Guidewire Software in the 4th quarter valued at $76,000. Employees Retirement System of Texas increased its stake in Guidewire Software by 26.4% during the 3rd quarter. Employees Retirement System of Texas now owns 781 shares of the technology company’s stock valued at $180,000 after purchasing an additional 163 shares in the last quarter. Finally, UMB Bank n.a. increased its stake in Guidewire Software by 15.8% during the 4th quarter. UMB Bank n.a. now owns 990 shares of the technology company’s stock valued at $199,000 after purchasing an additional 135 shares in the last quarter.

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.