Guidewire Software (NYSE:GWRE) Reaches New 12-Month Low – Time to Sell?

Guidewire Software, Inc. (NYSE:GWRE) shares hit a new 52-week low during trading on Thursday . The company traded as low as $150.70 and last traded at $150.0350, with a volume of 311301 shares traded. The stock had previously closed at $162.69.

Wall Street Analyst Weigh In

GWRE has been the subject of several research analyst reports. Wells Fargo & Company cut their target price on Guidewire Software from $275.00 to $250.00 and set an “overweight” rating for the company in a research report on Thursday, January 8th. BTIG Research restated a “buy” rating and issued a $250.00 target price on shares of Guidewire Software in a report on Tuesday. Wall Street Zen downgraded Guidewire Software from a “buy” rating to a “hold” rating in a research report on Friday, November 28th. Citigroup upped their price target on shares of Guidewire Software from $242.00 to $245.00 and gave the company a “neutral” rating in a report on Friday, December 5th. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Guidewire Software in a research report on Thursday, January 22nd. Twelve investment analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Guidewire Software has an average rating of “Moderate Buy” and an average target price of $269.50.

Guidewire Software Trading Down 8.6%

The stock has a market cap of $12.64 billion, a price-to-earnings ratio of 141.85, a P/E/G ratio of 10.44 and a beta of 1.08. The company has a debt-to-equity ratio of 0.44, a current ratio of 3.48 and a quick ratio of 3.48. The company’s fifty day moving average price is $192.62 and its 200-day moving average price is $216.58.

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

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

Insider Activity

In other Guidewire Software news, insider James Winston King sold 1,860 shares of the stock in a transaction that occurred on Thursday, December 18th. The stock was sold at an average price of $195.00, for a total transaction of $362,700.00. Following the transaction, the insider owned 33,702 shares in the company, valued at approximately $6,571,890. This represents a 5.23% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CAO David Franklin Peterson sold 358 shares of Guidewire Software stock in a transaction on Tuesday, December 16th. The shares were sold at an average price of $192.08, for a total transaction of $68,764.64. Following the completion of the sale, the chief accounting officer directly owned 12,806 shares in the company, valued at $2,459,776.48. This represents a 2.72% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 51,558 shares of company stock valued at $10,261,857. Insiders own 0.46% of the company’s stock.

Institutional Investors Weigh In On Guidewire Software

A number of hedge funds have recently modified their holdings of the business. Wealth Enhancement Advisory Services LLC grew its stake in shares of Guidewire Software by 57.0% in the 3rd quarter. Wealth Enhancement Advisory Services LLC now owns 51,694 shares of the technology company’s stock valued at $11,735,000 after purchasing an additional 18,774 shares during the last quarter. Scalar Gauge Management LLC purchased a new position in Guidewire Software in the 3rd quarter valued at $5,287,000. Allspring Global Investments Holdings LLC acquired a new position in Guidewire Software in the 3rd quarter valued at $51,967,000. Y Intercept Hong Kong Ltd raised its position in Guidewire Software by 59.6% during the 3rd quarter. Y Intercept Hong Kong Ltd now owns 27,763 shares of the technology company’s stock worth $6,382,000 after buying an additional 10,364 shares during the last quarter. Finally, Assenagon Asset Management S.A. lifted its stake in shares of Guidewire Software by 12.8% in the 3rd quarter. Assenagon Asset Management S.A. now owns 150,957 shares of the technology company’s stock worth $34,699,000 after acquiring an additional 17,151 shares during the period.

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.