Guidewire Software (NYSE:GWRE) Hits New 12-Month Low – Should You Sell?

Guidewire Software, Inc. (NYSE:GWRE)’s stock price hit a new 52-week low during trading on Thursday . The stock traded as low as $164.32 and last traded at $164.47, with a volume of 298886 shares changing hands. The stock had previously closed at $170.85.

Analyst Upgrades and Downgrades

GWRE has been the topic of several recent analyst reports. DA Davidson upgraded Guidewire Software from a “neutral” rating to a “buy” rating and increased their price target for the stock from $246.00 to $250.00 in a report on Wednesday, December 17th. Wall Street Zen lowered Guidewire Software from a “buy” rating to a “hold” rating in a research note on Friday, November 28th. Weiss Ratings reissued a “hold (c)” rating on shares of Guidewire Software in a research note on Wednesday, October 8th. BTIG Research reaffirmed a “buy” rating and issued a $250.00 price target on shares of Guidewire Software in a research note on Wednesday, December 17th. Finally, Citizens Jmp reissued a “market outperform” rating and issued a $281.00 price objective on shares of Guidewire Software in a research report on Wednesday, December 10th. One investment analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $269.50.

Guidewire Software Stock Performance

The firm’s 50 day moving average is $204.11 and its 200 day moving average is $221.42. The company has a debt-to-equity ratio of 0.44, a quick ratio of 3.48 and a current ratio of 3.48. The stock has a market cap of $14.14 billion, a P/E ratio of 158.42, a price-to-earnings-growth ratio of 11.69 and a beta of 1.08.

Guidewire Software (NYSE:GWRE) last announced its earnings results on Wednesday, December 3rd. The technology company reported $0.66 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.66. Guidewire Software had a return on equity of 10.15% and a net margin of 7.23%.The company had revenue of $332.64 million for the quarter, compared to analyst estimates of $316.62 million. During the same period in the prior year, the company posted $0.43 EPS. The firm’s quarterly revenue was up 26.5% compared to the same quarter last year. Analysts anticipate that Guidewire Software, Inc. will post 0.52 EPS for the current year.

Guidewire Software announced that its Board of Directors has authorized a share repurchase plan on Thursday, January 8th that authorizes the company to buyback $500.00 million in outstanding shares. This buyback authorization authorizes the technology company to purchase up to 3.1% of its shares through open market purchases. Shares buyback plans are usually a sign that the company’s board of directors believes its shares are undervalued.

Insider Transactions at Guidewire Software

In related news, CEO Michael George Rosenbaum sold 6,015 shares of Guidewire Software stock in a transaction that occurred on Tuesday, December 16th. The stock was sold at an average price of $192.08, for a total transaction of $1,155,361.20. Following the completion of the transaction, the chief executive officer directly owned 240,743 shares in the company, valued at approximately $46,241,915.44. This trade represents a 2.44% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, President John P. Mullen sold 7,975 shares of the firm’s stock in a transaction dated Tuesday, December 16th. The shares were sold at an average price of $192.08, for a total value of $1,531,838.00. Following the sale, the president owned 141,983 shares in the company, valued at $27,272,094.64. This trade represents a 5.32% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 51,340 shares of company stock valued at $10,523,458. 0.46% of the stock is owned by company insiders.

Hedge Funds Weigh In On Guidewire Software

A number of large investors have recently added to or reduced their stakes in GWRE. Allspring Global Investments Holdings LLC boosted its holdings in Guidewire Software by 112.6% in the 4th quarter. Allspring Global Investments Holdings LLC now owns 479,859 shares of the technology company’s stock worth $90,036,000 after buying an additional 254,142 shares during the last quarter. Hennion & Walsh Asset Management Inc. increased its position in shares of Guidewire Software by 87.0% during the fourth quarter. Hennion & Walsh Asset Management Inc. now owns 5,695 shares of the technology company’s stock worth $1,145,000 after purchasing an additional 2,649 shares in the last quarter. Exchange Traded Concepts LLC raised its stake in Guidewire Software by 57.2% in the 4th quarter. Exchange Traded Concepts LLC now owns 4,866 shares of the technology company’s stock valued at $978,000 after purchasing an additional 1,770 shares during the last quarter. Net Worth Advisory Group lifted its holdings in Guidewire Software by 14.1% in the 4th quarter. Net Worth Advisory Group now owns 1,658 shares of the technology company’s stock valued at $333,000 after purchasing an additional 205 shares in the last quarter. Finally, Stablepoint Partners LLC boosted its stake in Guidewire Software by 4.9% during the 4th quarter. Stablepoint Partners LLC now owns 4,903 shares of the technology company’s stock worth $986,000 after purchasing an additional 227 shares during the last quarter.

About Guidewire Software

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.