DA Davidson Reiterates Buy Rating for Guidewire Software (NYSE:GWRE)

Guidewire Software (NYSE:GWRE)‘s stock had its “buy” rating reiterated by research analysts at DA Davidson in a report released on Friday, Benzinga reports. They currently have a $222.00 price objective on the technology company’s stock. DA Davidson’s price objective would indicate a potential upside of 40.15% from the company’s current price.

Several other equities analysts have also recently issued reports on GWRE. Robert W. Baird upped their price objective on Guidewire Software from $202.00 to $235.00 and gave the company an “outperform” rating in a research report on Monday. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Guidewire Software in a research report on Monday. BTIG Research lifted their price objective on Guidewire Software from $175.00 to $230.00 and gave the stock a “buy” rating in a report on Wednesday. The Goldman Sachs Group decreased their target price on Guidewire Software from $255.00 to $225.00 and set a “buy” rating for the company in a research report on Friday, June 5th. Finally, Stifel Nicolaus dropped their price target on shares of Guidewire Software from $225.00 to $200.00 and set a “buy” rating on the stock in a report on Friday, June 5th. Thirteen investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $224.29.

Guidewire Software Trading Down 21.9%

Shares of GWRE traded down $44.46 during mid-day trading on Friday, hitting $158.40. 1,612,082 shares of the company’s stock traded hands, compared to its average volume of 1,568,555. 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 capitalization of $13.19 billion, a P/E ratio of 85.45 and a beta of 0.97. The business’s 50-day moving average price is $160.22 and its 200-day moving average price is $146.26. Guidewire Software has a 1 year low of $102.30 and a 1 year high of $272.60.

Guidewire Software (NYSE:GWRE) last released its earnings results on Thursday, September 3rd. The technology company reported $0.99 EPS for the quarter, beating analysts’ consensus estimates of $0.93 by $0.06. The company had revenue of $411.09 million during the quarter, compared to analysts’ expectations of $402.61 million. Guidewire Software had a return on equity of 12.62% and a net margin of 11.25%.The firm’s revenue for the quarter was up 15.3% compared to the same quarter last year. During the same quarter last year, the business posted $0.84 EPS. As a group, sell-side analysts forecast that Guidewire Software will post 1.83 EPS for the current fiscal year.

Insider Activity

In other Guidewire Software news, CAO David Peterson sold 2,500 shares of the company’s stock in a transaction on Thursday, August 27th. The stock was sold at an average price of $200.00, for a total value 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 sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Jeffrey Cooper sold 2,594 shares of the firm’s 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 completion of the transaction, the chief financial officer directly owned 63,467 shares in the company, valued at $7,536,071.58. This 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 90 days, insiders have sold 47,093 shares of company stock valued at $7,185,902. 0.46% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Guidewire Software

A number of institutional investors have recently added to or reduced their stakes in the stock. American Trust boosted its stake in Guidewire Software by 3.9% in the third quarter. American Trust now owns 1,632 shares of the technology company’s stock valued at $375,000 after acquiring an additional 61 shares in the last quarter. Vident Advisory LLC increased its position in shares of Guidewire Software by 1.7% during the third quarter. Vident Advisory LLC now owns 4,074 shares of the technology company’s stock worth $936,000 after purchasing an additional 70 shares in the last quarter. Castleark Management LLC lifted its holdings in shares of Guidewire Software by 1.6% during the 1st quarter. Castleark Management LLC now owns 5,180 shares of the technology company’s stock valued at $775,000 after purchasing an additional 80 shares during the last quarter. Cassaday & Co Wealth Management LLC lifted its holdings in shares of Guidewire Software by 9.9% during the 4th quarter. Cassaday & Co Wealth Management LLC now owns 1,085 shares of the technology company’s stock valued at $218,000 after purchasing an additional 98 shares during the last quarter. Finally, Avory & Company LLC boosted its position in shares of Guidewire Software by 10.0% in the 4th quarter. Avory & Company LLC now owns 1,187 shares of the technology company’s stock worth $239,000 after purchasing an additional 108 shares in the last quarter.

Key Guidewire Software News

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

• Positive Sentiment: Guidewire reported fourth-quarter EPS of $0.99, above the $0.93 analyst consensus, while revenue of $411.1 million exceeded expectations of $402.6 million. Revenue increased 15.3% year over year, and EPS improved from $0.84 in the prior-year quarter. Guidewire Announces Fourth Quarter and Fiscal Year 2026 Financial Results
• Positive Sentiment: Management issued fiscal 2027 revenue guidance of approximately $1.7 billion and highlighted increasing demand for its core products, new pricing offerings and AI-focused solutions. This supports the longer-term growth narrative. Analysts Revise Forecasts After Q4 Results
• Positive Sentiment: Several analysts remain bullish: Wells Fargo raised its target to $195 with an overweight rating, while Piper Sandler, RBC and Citizens JMP maintained positive ratings with targets ranging from $210 to $220. Citigroup also raised its target to $181, although it kept a neutral rating.
• Neutral Sentiment: Analyst reactions were mixed. Needham reaffirmed a hold rating, while other firms largely maintained their constructive views following the earnings report.
• Negative Sentiment: Fiscal first-quarter 2027 revenue guidance of $372 million to $378 million fell below the $386.1 million consensus estimate. Investors viewed the outlook as a sign of slower near-term growth, despite the quarterly earnings beat. Guidewire Shares Tumble on Weak First-Quarter Guidance
• Negative Sentiment: The weak first-quarter outlook overshadowed the results and triggered a sharp share decline. With GWRE trading at a high earnings multiple, investors appear to be demanding stronger forward guidance before assigning a higher valuation. Guidewire Sinks as Weak Outlook Overshadows Q4 Beat

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.