Guidewire Software, Inc. (GWRE) Raised to “Buy” at Zacks Investment Research

Guidewire Software, Inc. (NYSE:GWRE) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Tuesday, October 17th. The brokerage presently has a $88.00 price objective on the technology company’s stock. Zacks Investment Research‘s price target indicates a potential upside of 13.26% from the stock’s previous close.

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.”

Several other research firms have also commented on GWRE. Citigroup Inc. reaffirmed a “buy” rating and set a $85.00 price target (up previously from $79.00) on shares of Guidewire Software in a research report on Thursday, September 7th. TheStreet raised Guidewire Software from a “c+” rating to a “b” rating in a research report on Wednesday, September 6th. Deutsche Bank AG reaffirmed a “buy” rating and set a $85.00 price target (up previously from $80.00) on shares of Guidewire Software in a research report on Monday, October 2nd. KeyCorp reissued a “buy” rating and issued a $86.00 target price on shares of Guidewire Software in a report on Friday, September 29th. Finally, Bank of America Corporation boosted their target price on Guidewire Software from $74.00 to $76.00 and gave the company a “neutral” rating in a report on Thursday, September 7th. Five analysts have rated the stock with a hold rating, eight have assigned a buy rating and one has given a strong buy rating to the stock. The company currently has a consensus rating of “Buy” and a consensus price target of $80.11.

Guidewire Software (NYSE GWRE) traded up 0.62% on Tuesday, reaching $77.70. 426,027 shares of the company’s stock were exchanged. Guidewire Software has a 52-week low of $49.18 and a 52-week high of $81.46. The firm’s 50 day moving average price is $77.91 and its 200 day moving average price is $70.04. The company has a market cap of $5.83 billion, a PE ratio of 277.50 and a beta of 1.22.

Guidewire Software (NYSE:GWRE) last announced its quarterly earnings data on Wednesday, September 6th. The technology company reported $0.59 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.39 by $0.20. The business had revenue of $181.10 million during the quarter, compared to analysts’ expectations of $168.61 million. Guidewire Software had a return on equity of 3.59% and a net margin of 4.13%. The business’s quarterly revenue was up 28.3% compared to the same quarter last year. During the same quarter last year, the business posted $0.22 EPS. On average, analysts expect that Guidewire Software will post $0.97 earnings per share for the current year.

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In other news, CEO Marcus Ryu sold 25,000 shares of the company’s stock in a transaction on Monday, October 2nd. The stock was sold at an average price of $78.56, for a total value of $1,964,000.00. Following the sale, the chief executive officer now directly owns 149,678 shares in the company, valued at $11,758,703.68. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Craig Conway sold 600 shares of the company’s stock in a transaction on Monday, October 16th. The shares were sold at an average price of $78.51, for a total value of $47,106.00. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 114,870 shares of company stock worth $8,738,930. 0.96% of the stock is owned by company insiders.

A number of institutional investors have recently added to or reduced their stakes in GWRE. BlackRock Inc. increased its stake in Guidewire Software by 33,371.0% in the first quarter. BlackRock Inc. now owns 3,071,300 shares of the technology company’s stock valued at $173,006,000 after purchasing an additional 3,062,124 shares during the last quarter. Janus Henderson Group PLC acquired a new position in Guidewire Software in the second quarter valued at $113,628,000. Harbour Capital Advisors LLC acquired a new position in Guidewire Software in the second quarter valued at $6,700,000. Wasatch Advisors Inc. acquired a new position in Guidewire Software in the second quarter valued at $28,037,000. Finally, Goldman Sachs Group Inc. increased its stake in Guidewire Software by 49.9% in the first quarter. Goldman Sachs Group Inc. now owns 988,047 shares of the technology company’s stock valued at $55,656,000 after purchasing an additional 329,005 shares during the last quarter.

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.

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