Guidewire Software (NYSE:GWRE) Reaches New 1-Year Low on Insider Selling

Guidewire Software, Inc. (NYSE:GWRE)’s stock price hit a new 52-week low during mid-day trading on Tuesday after an insider sold shares in the company. The company traded as low as $120.37 and last traded at $122.1250, with a volume of 245430 shares traded. The stock had previously closed at $127.03.

Specifically, CEO Michael George Rosenbaum sold 1,200 shares of the firm’s stock in a transaction on Tuesday, February 17th. The shares were sold at an average price of $127.00, for a total value of $152,400.00. Following the completion of the transaction, the chief executive officer owned 230,743 shares of the company’s stock, valued at approximately $29,304,361. This trade represents a 0.52% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website.

Wall Street Analysts Forecast Growth

A number of equities analysts recently issued reports on the company. Weiss Ratings restated a “hold (c)” rating on shares of Guidewire Software in a research note on Thursday, January 22nd. Wells Fargo & Company dropped their target price on Guidewire Software from $250.00 to $210.00 and set an “overweight” rating on the stock in a research report on Wednesday, February 4th. Wall Street Zen lowered shares of Guidewire Software from a “buy” rating to a “hold” rating in a research report on Friday, November 28th. DA Davidson raised shares of Guidewire Software from a “neutral” rating to a “buy” rating and upped their price objective for the company from $246.00 to $250.00 in a report on Wednesday, December 17th. Finally, Citigroup raised their target price on shares of Guidewire Software from $242.00 to $245.00 and gave the stock a “neutral” rating in a report on Friday, December 5th. Eleven investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $259.77.

Guidewire Software News Summary

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

• Positive Sentiment: Sompo Group signed a long-term agreement to adopt Guidewire Cloud, a meaningful enterprise customer win that expands Guidewire’s global footprint and recurring cloud revenue visibility. Sompo Group and Guidewire Enter Long-Term Agreement
• Positive Sentiment: Guidewire released the London Market Tech Barometer showing brokers favor digitally advanced insurers — evidence that demand for Guidewire’s digital/cloud capabilities remains strong in key commercial insurance markets. London Market Tech Barometer
• Positive Sentiment: Unusual options activity—large call buying (1,297 calls, ~1,563% above average)—suggests some traders are positioned for upside into near-term news or catalysts. (Trade alert reported in market feeds.)
• Positive Sentiment: Guidewire has a $500M share repurchase authorization (announced earlier), which supports buy-side demand and signals management confidence in long-term value. (Referenced in recent MarketBeat coverage.)
• Neutral Sentiment: The company scheduled its Q2 FY2026 earnings release for March 5 (audio webcast), creating a near-term catalyst that can swing sentiment depending on guidance and execution. Earnings Release Announcement
• Neutral Sentiment: Market commentary and explainers (e.g., “Does Sompo’s New Cloud Deal Sharpen Guidewire’s Edge?”) are helping investors parse the Sompo deal’s strategic value versus valuation — useful context but not an immediate price driver. Does Sompo’s New Cloud Deal Sharpen Guidewire’s Edge?
• Negative Sentiment: BTIG cut its price target from $225 to $175 (still a “buy”), signaling some analyst concern on near-term valuation and adding downward pressure. BTIG Research Price Target Cut
• Negative Sentiment: CEO Michael Rosenbaum sold 1,200 shares (and has been selling periodically), which can weigh on sentiment even if sales are small relative to total holdings. SEC filing available for review. SEC Form 4 – Insider Sale

Guidewire Software Stock Performance

The company has a current ratio of 3.48, a quick ratio of 3.48 and a debt-to-equity ratio of 0.44. The firm’s fifty day moving average is $167.22 and its 200 day moving average is $206.33. The company has a market cap of $10.94 billion, a PE ratio of 122.60, a price-to-earnings-growth ratio of 8.30 and a beta of 1.06.

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. The business 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 company’s revenue for the quarter was up 26.5% compared to the same quarter last year. During the same quarter last year, the business earned $0.43 earnings per share. As a group, research analysts predict 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 stock buyback program on Thursday, January 8th that permits the company to buyback $500.00 million in shares. This buyback authorization permits the technology company to purchase up to 3.1% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s board believes its shares are undervalued.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. grew its holdings in shares of Guidewire Software by 1.3% during the third quarter. Vanguard Group Inc. now owns 9,039,377 shares of the technology company’s stock worth $2,077,791,000 after buying an additional 116,726 shares in the last quarter. Geode Capital Management LLC boosted its position in Guidewire Software by 8.9% during the fourth quarter. Geode Capital Management LLC now owns 1,778,201 shares of the technology company’s stock worth $357,504,000 after acquiring an additional 145,924 shares during the last quarter. Stockbridge Partners LLC grew its stake in Guidewire Software by 39.0% during the 4th quarter. Stockbridge Partners LLC now owns 1,445,206 shares of the technology company’s stock valued at $290,501,000 after acquiring an additional 405,850 shares in the last quarter. AQR Capital Management LLC raised its holdings in Guidewire Software by 3.6% in the 4th quarter. AQR Capital Management LLC now owns 1,316,817 shares of the technology company’s stock valued at $264,693,000 after acquiring an additional 45,289 shares during the last quarter. Finally, Capital World Investors purchased a new position in Guidewire Software in the 4th quarter worth approximately $202,405,000.

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.