Guidewire Software (NYSE:GWRE) Shares Down 5.8% Following Weak Earnings

Guidewire Software, Inc. (NYSE:GWRE)’s stock price dropped 5.8% during mid-day trading on Friday following a weaker than expected earnings announcement. The company traded as low as $181.20 and last traded at $176.12. Approximately 265,210 shares changed hands during mid-day trading, a decline of 79% from the average daily volume of 1,258,145 shares. The stock had previously closed at $186.98.

The technology company reported $0.08 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.52 by ($0.44). Guidewire Software had a return on equity of 2.38% and a net margin of 2.91%. The firm had revenue of $289.48 million during the quarter, compared to analysts’ expectations of $285.74 million.

Analyst Upgrades and Downgrades

A number of research firms have recently commented on GWRE. Oppenheimer boosted their price target on shares of Guidewire Software from $220.00 to $230.00 and gave the company an “outperform” rating in a research report on Friday, December 6th. Stifel Nicolaus lifted their price target on Guidewire Software from $200.00 to $220.00 and gave the stock a “buy” rating in a research note on Tuesday, November 19th. DA Davidson reissued a “buy” rating and set a $210.00 price objective on shares of Guidewire Software in a report on Wednesday, December 4th. JPMorgan Chase & Co. upped their target price on Guidewire Software from $210.00 to $228.00 and gave the stock an “overweight” rating in a research note on Friday, December 6th. Finally, The Goldman Sachs Group boosted their price objective on shares of Guidewire Software from $210.00 to $240.00 and gave the stock a “buy” rating in a report on Monday, February 10th. One analyst has rated the stock with a sell rating, two have given a hold rating and ten have issued a buy rating to the stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $205.83.

Insider Activity at Guidewire Software

In other Guidewire Software news, insider James Winston King sold 270 shares of the business’s stock in a transaction on Wednesday, January 15th. The shares were sold at an average price of $174.78, for a total transaction of $47,190.60. Following the completion of the sale, the insider now directly owns 45,664 shares in the company, valued at approximately $7,981,153.92. The trade was a 0.59 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, President John P. Mullen sold 1,350 shares of the firm’s stock in a transaction dated Friday, December 20th. The stock was sold at an average price of $170.43, for a total value of $230,080.50. Following the completion of the transaction, the president now directly owns 180,746 shares in the company, valued at $30,804,540.78. The trade was a 0.74 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 42,656 shares of company stock valued at $7,856,836. 0.48% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in GWRE. Versant Capital Management Inc bought a new stake in Guidewire Software in the 4th quarter valued at $25,000. Assetmark Inc. increased its stake in Guidewire Software by 537.0% during the third quarter. Assetmark Inc. now owns 172 shares of the technology company’s stock worth $31,000 after acquiring an additional 145 shares during the last quarter. Ossiam purchased a new stake in Guidewire Software during the fourth quarter valued at approximately $29,000. Point72 Hong Kong Ltd purchased a new position in shares of Guidewire Software in the 3rd quarter worth approximately $33,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. increased its position in shares of Guidewire Software by 101.0% during the 4th quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 197 shares of the technology company’s stock valued at $34,000 after purchasing an additional 99 shares during the last quarter.

Guidewire Software Stock Performance

The business has a 50-day moving average of $194.39 and a 200-day moving average of $184.38. The company has a market capitalization of $14.74 billion, a P/E ratio of 492.73, a P/E/G ratio of 37.21 and a beta of 1.25. The company has a debt-to-equity ratio of 0.53, a current ratio of 2.66 and a quick ratio of 2.66.

About Guidewire Software

Guidewire Software, Inc provides a platform for property and casualty (P&C) insurers worldwide. The company offers Guidewire InsuranceSuite Cloud, such as PolicyCenter Cloud, BillingCenter Cloud, and ClaimCenter Cloud applications. It also provides Guidewire InsuranceNow, a cloud-based platform that offers policy, billing, and claims management functionality to insurers; and Guidewire InsuranceSuite for Self-Managed.