Royal Bank Of Canada Has Lowered Expectations for Guidewire Software (NYSE:GWRE) Stock Price

Guidewire Software (NYSE:GWRE) had its target price dropped by research analysts at Royal Bank Of Canada from $300.00 to $250.00 in a research note issued on Friday,Benzinga reports. The brokerage currently has an “outperform” rating on the technology company’s stock. Royal Bank Of Canada’s price target suggests a potential upside of 48.46% from the company’s current price.

Other equities research analysts have also recently issued reports about the company. BTIG Research upped their price target on Guidewire Software from $175.00 to $200.00 and gave the company a “buy” rating in a research report on Friday. Wall Street Zen lowered shares of Guidewire Software from a “buy” rating to a “hold” rating in a report on Friday, November 28th. Zacks Research cut shares of Guidewire Software from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, December 2nd. Citigroup boosted their price target on shares of Guidewire Software from $242.00 to $245.00 and gave the company a “neutral” rating in a research report on Friday, December 5th. Finally, Wells Fargo & Company decreased their price target on shares of Guidewire Software from $250.00 to $210.00 and set an “overweight” rating on the stock in a report on Wednesday, February 4th. Eleven research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $250.15.

Guidewire Software Stock Performance

GWRE stock traded up $7.56 during midday trading on Friday, reaching $168.40. 1,187,570 shares of the company’s stock traded hands, compared to its average volume of 1,790,252. The firm has a market capitalization of $14.32 billion, a PE ratio of 160.38, a price-to-earnings-growth ratio of 9.91 and a beta of 1.06. The company has a 50-day moving average price of $155.43 and a two-hundred day moving average price of $201.24. Guidewire Software has a 52 week low of $120.37 and a 52 week high of $272.60. The company has a debt-to-equity ratio of 0.44, a quick ratio of 3.48 and a current ratio of 3.48.

Guidewire Software (NYSE:GWRE) last announced its quarterly earnings results on Thursday, March 5th. The technology company reported $1.17 earnings per share for the quarter, beating the consensus estimate of $0.77 by $0.40. Guidewire Software had a return on equity of 10.15% and a net margin of 7.23%.The company had revenue of $359.10 million during the quarter, compared to analysts’ expectations of $342.88 million. During the same period in the previous year, the business earned $0.51 earnings per share. The firm’s quarterly revenue was up 24.0% compared to the same quarter last year. As a group, equities analysts anticipate that Guidewire Software will post 0.52 EPS for the current year.

Guidewire Software declared that its Board of Directors has approved a stock repurchase plan on Thursday, January 8th that permits the company to buyback $500.00 million in outstanding shares. This buyback authorization permits the technology company to repurchase up to 3.1% of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s management believes its shares are undervalued.

Insider Buying and Selling

In other news, CEO Michael George Rosenbaum sold 1,200 shares of the business’s stock in a transaction that occurred on Monday, February 23rd. The shares were sold at an average price of $125.50, for a total value of $150,600.00. Following the completion of the sale, the chief executive officer directly owned 229,543 shares in the company, valued at approximately $28,807,646.50. The trade was a 0.52% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, 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 transaction of $362,700.00. Following the completion of the sale, the insider directly owned 33,702 shares of the company’s stock, valued at $6,571,890. This trade represents a 5.23% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 42,760 shares of company stock worth $7,978,508 in the last quarter. 0.46% of the stock is owned by insiders.

Institutional Trading of Guidewire Software

Several hedge funds have recently added to or reduced their stakes in the business. IFP Advisors Inc grew its stake in shares of Guidewire Software by 4.6% during the third quarter. IFP Advisors Inc now owns 1,104 shares of the technology company’s stock valued at $254,000 after buying an additional 49 shares during the last quarter. Earned Wealth Advisors LLC boosted its holdings in Guidewire Software by 5.4% during the 3rd quarter. Earned Wealth Advisors LLC now owns 989 shares of the technology company’s stock valued at $227,000 after acquiring an additional 51 shares during the period. Smartleaf Asset Management LLC boosted its holdings in Guidewire Software by 9.3% during the 3rd quarter. Smartleaf Asset Management LLC now owns 624 shares of the technology company’s stock valued at $145,000 after acquiring an additional 53 shares during the period. PDS Planning Inc grew its position in Guidewire Software by 6.4% during the 3rd quarter. PDS Planning Inc now owns 911 shares of the technology company’s stock worth $209,000 after acquiring an additional 55 shares during the last quarter. Finally, American Trust increased its stake in Guidewire Software by 3.9% in the 3rd quarter. American Trust now owns 1,632 shares of the technology company’s stock worth $375,000 after purchasing an additional 61 shares during the period.

Guidewire Software News Roundup

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

• Positive Sentiment: Q2 beat and raised outlook — Guidewire reported a strong Q2 with EPS and revenue above consensus and raised its fiscal‑2026 outlook, a primary driver of the rally. Guidewire Raises Outlook After Strong Quarter
• Positive Sentiment: Raised fiscal‑2026 revenue target to $1.448B — Management cited large deals and accelerating AI-driven modernization as reasons for lifting the revenue outlook, supporting expectations for continued top‑line acceleration. Guidewire raises fiscal 2026 revenue outlook to $1.448B
• Positive Sentiment: Company release & messaging — Official BusinessWire release emphasized durable demand for large, multi‑year deals and AI-driven product momentum, reinforcing the guidance raise and positive management commentary. Guidewire Announces Second Quarter Fiscal Year 2026 Financial Results
• Positive Sentiment: Analyst upgrade / price‑target lift — BTIG raised its price target from $175 to $200 and maintained a buy rating, adding analyst conviction and potential incremental buy-side interest. BTIG price target raise (Benzinga)
• Positive Sentiment: Unusual options activity — Large call buying was noted (1,297 calls), signaling speculative or hedged bullish bets that can amplify intraday moves.
• Neutral Sentiment: Q2 / ARR highlights coverage — Analyst and media recaps emphasize strong ARR growth and cloud momentum; useful detail for modeling subscription cadence but largely descriptive rather than new. Q2 2026 Earnings Call Highlights (Yahoo)
• Neutral Sentiment: Earnings call transcript & details — Full transcript provides color on large deals, AI initiatives, and cadence for ARR conversion — helpful for longer‑term modeling but not incremental to the headline beat. Earnings Call Transcript (Seeking Alpha)
• Neutral Sentiment: Metric analysis — Zacks and other outlets note outperformance versus estimates on top and bottom lines; useful for comparing execution but mostly confirms the beat. Guidewire Q2 earnings vs. estimates (Zacks)

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.