Guidewire Software, Inc. (GWRE) Rating Lowered to Hold at Zacks Investment Research

Guidewire Software, Inc. (NYSE:GWRE) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a research note issued on Wednesday.

According to Zacks, “Guidewire Software, a property and casualty insurance based software solutions provider, reported better-than-expected fiscal fourth-quarter 2017 results. The impressive top and bottom lines were driven by higher service activities, an additional $16.2 million of hosting revenues from ISCS, which the company acquired in February 2017; and certain early payments from term licenses. Notably, regular customer addition via cross-selling of its product suites is a positive. The company’s shift from term license to a cloud-based model is a tailwind for the company in the long run as the industry shifts toward cloud infrastructure. However, the costs related to the shift will put pressure on margins in the near term and affect the top line as term license revenues include advance payments whereas subscription-based revenues are a bit delayed. Nevertheless, the company’s shares have outperformed the industry on a year-to-date basis.”

GWRE has been the subject of a number of other research reports. Deutsche Bank AG reissued a “buy” rating and set a $85.00 target price (up previously from $80.00) on shares of Guidewire Software in a research report on Monday, October 2nd. KeyCorp reissued a “buy” rating and set a $86.00 target price on shares of Guidewire Software in a research report on Friday, September 29th. TheStreet raised shares of Guidewire Software from a “c+” rating to a “b” rating in a research report on Wednesday, September 6th. Citigroup Inc. reissued a “buy” rating and set a $85.00 target price (up previously from $79.00) on shares of Guidewire Software in a research report on Thursday, September 7th. Finally, Bank of America Corporation increased their target price on shares of Guidewire Software from $74.00 to $76.00 and gave the company a “neutral” rating in a research report on Thursday, September 7th. Five analysts have rated the stock with a hold rating, seven have assigned a buy rating and two have assigned a strong buy rating to the stock. The company currently has a consensus rating of “Buy” and a consensus target price of $80.67.

Shares of Guidewire Software (GWRE) traded down 1.33% during trading on Wednesday, hitting $78.58. 159,950 shares of the company’s stock were exchanged. The stock has a market cap of $5.89 billion, a P/E ratio of 280.64 and a beta of 1.22. The firm has a 50-day moving average price of $77.16 and a 200-day moving average price of $68.64. Guidewire Software has a one year low of $49.18 and a one year high of $81.46.

Guidewire Software (NYSE:GWRE) last announced its quarterly earnings results on Wednesday, September 6th. The technology company reported $0.59 earnings per share for the quarter, topping the consensus estimate of $0.39 by $0.20. Guidewire Software had a net margin of 4.13% and a return on equity of 3.59%. The firm had revenue of $181.10 million during the quarter, compared to analysts’ expectations of $168.61 million. During the same quarter in the prior year, the company earned $0.22 EPS. The company’s revenue was up 28.3% compared to the same quarter last year. Equities research analysts expect that Guidewire Software will post $0.98 EPS for the current fiscal year.

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In other news, insider Scott Roza sold 782 shares of the stock in a transaction on Monday, July 17th. The shares were sold at an average price of $70.39, for a total value of $55,044.98. Following the sale, the insider now owns 1,383 shares in the company, valued at $97,349.37. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Richard Hart sold 375 shares of the stock in a transaction on Thursday, October 5th. The stock was sold at an average price of $77.40, for a total transaction of $29,025.00. The disclosure for this sale can be found here. Insiders have sold a total of 114,870 shares of company stock worth $8,727,708 in the last 90 days. 0.96% of the stock is currently owned by company insiders.

Large investors have recently added to or reduced their stakes in the company. D.A. Davidson & CO. increased its stake in shares of Guidewire Software by 2,270.8% in the second quarter. D.A. Davidson & CO. now owns 1,541 shares of the technology company’s stock worth $105,000 after acquiring an additional 1,476 shares during the period. The Manufacturers Life Insurance Company increased its stake in shares of Guidewire Software by 7.3% in the second quarter. The Manufacturers Life Insurance Company now owns 2,205 shares of the technology company’s stock worth $151,000 after acquiring an additional 150 shares during the period. Zurcher Kantonalbank Zurich Cantonalbank increased its stake in shares of Guidewire Software by 12.6% in the second quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 2,536 shares of the technology company’s stock worth $174,000 after acquiring an additional 283 shares during the period. Tower Research Capital LLC TRC increased its stake in shares of Guidewire Software by 424.4% in the first quarter. Tower Research Capital LLC TRC now owns 2,601 shares of the technology company’s stock worth $146,000 after acquiring an additional 2,105 shares during the period. Finally, First Trust Advisors LP acquired a new stake in shares of Guidewire Software in the second quarter worth $214,000.

About Guidewire Software

Guidewire Software, Inc is a provider of software products for property and casualty (P&C) insurers. The Company’s software serves as a technology platform for P&C insurance carriers. The Company’s InsurancePlatform consists of three elements: core transaction processing, data management and analytics, and digital engagement.

Analyst Recommendations for Guidewire Software (NYSE:GWRE)

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