Guidewire Software (NYSE:GWRE) Issues Earnings Results, Beats Expectations By $0.40 EPS

Guidewire Software (NYSE:GWRE) released its earnings results on Thursday. The technology company reported $1.17 earnings per share for the quarter, beating analysts’ consensus estimates of $0.77 by $0.40, FiscalAI reports. The firm had revenue of $359.10 million during the quarter, compared to the consensus estimate of $342.88 million. Guidewire Software had a return on equity of 10.15% and a net margin of 7.23%.

Guidewire Software Trading Up 5.1%

Shares of GWRE traded up $7.83 during mid-day trading on Thursday, reaching $161.62. 3,380,848 shares of the company were exchanged, compared to its average volume of 1,806,287. The business has a 50 day simple moving average of $156.32 and a two-hundred day simple moving average of $201.52. Guidewire Software has a 52 week low of $120.37 and a 52 week high of $272.60. The stock has a market capitalization of $13.74 billion, a PE ratio of 153.93, a PEG ratio of 9.79 and a beta of 1.06. The company has a debt-to-equity ratio of 0.44, a quick ratio of 3.48 and a current ratio of 3.48.

Insider Activity

In other news, insider James Winston King sold 1,860 shares of the company’s stock in a transaction on Thursday, December 18th. The shares were 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 transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, President John P. Mullen sold 7,975 shares of the business’s stock in a transaction on Tuesday, December 16th. The shares were sold at an average price of $192.08, for a total transaction of $1,531,838.00. Following the completion of the transaction, the president owned 141,983 shares in the company, valued at approximately $27,272,094.64. The trade was a 5.32% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 42,760 shares of company stock worth $7,978,508 over the last quarter. Company insiders own 0.46% of the company’s stock.

Hedge Funds Weigh In On Guidewire Software

Institutional investors and hedge funds have recently modified their holdings of the business. Corient Private Wealth LLC increased its stake in shares of Guidewire Software by 38.6% in the 4th quarter. Corient Private Wealth LLC now owns 10,958 shares of the technology company’s stock valued at $2,164,000 after acquiring an additional 3,053 shares in the last quarter. Mackenzie Financial Corp grew its holdings in Guidewire Software by 8.7% in the fourth quarter. Mackenzie Financial Corp now owns 5,693 shares of the technology company’s stock worth $1,151,000 after purchasing an additional 458 shares during the period. NewEdge Advisors LLC increased its stake in Guidewire Software by 5.4% in the fourth quarter. NewEdge Advisors LLC now owns 3,868 shares of the technology company’s stock valued at $777,000 after purchasing an additional 198 shares in the last quarter. XTX Topco Ltd raised its holdings in shares of Guidewire Software by 349.9% during the fourth quarter. XTX Topco Ltd now owns 12,382 shares of the technology company’s stock valued at $2,489,000 after purchasing an additional 9,630 shares during the period. Finally, Zurich Insurance Group Ltd FI acquired a new position in shares of Guidewire Software during the fourth quarter valued at about $5,547,000.

Guidewire Software announced that its board has approved a share repurchase plan on Thursday, January 8th that authorizes the company to repurchase $500.00 million in outstanding shares. This repurchase authorization authorizes the technology company to buy up to 3.1% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s management believes its stock is undervalued.

Analyst Ratings Changes

A number of analysts have recently weighed in on GWRE shares. Oppenheimer cut their price target on shares of Guidewire Software from $300.00 to $250.00 and set an “outperform” rating for the company in a report on Tuesday, February 24th. Citizens Jmp restated a “market outperform” rating and set a $281.00 price objective on shares of Guidewire Software in a research report on Wednesday, December 10th. Zacks Research downgraded Guidewire Software from a “strong-buy” rating to a “hold” rating in a report on Tuesday, December 2nd. Wells Fargo & Company decreased their price target on Guidewire Software from $250.00 to $210.00 and set an “overweight” rating on the stock in a research note on Wednesday, February 4th. Finally, Weiss Ratings restated a “hold (c)” rating on shares of Guidewire Software in a research report on Thursday, January 22nd. Eleven equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $255.92.

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.