Guidewire Software, Inc. (NYSE:GWRE) Downgraded by Zacks Investment Research

Zacks Investment Research cut shares of Guidewire Software, Inc. (NYSE:GWRE) from a buy rating to a hold rating in a research note published on Friday, October 27th.

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 also recently commented on GWRE. KeyCorp restated a buy rating and set a $86.00 target price on shares of Guidewire Software in a research report on Friday, September 29th. Stifel Nicolaus boosted their target price on shares of Guidewire Software from $70.00 to $75.00 and gave the company a hold rating in a research report on Thursday, September 7th. BidaskClub upgraded shares of Guidewire Software from a buy rating to a strong-buy rating in a research report on Saturday, August 19th. ValuEngine upgraded shares of Guidewire Software from a sell rating to a hold rating in a research report on Thursday, August 3rd. Finally, Bank of America Corporation upped their price objective on shares of Guidewire Software from $74.00 to $76.00 and gave the stock a neutral rating in a research report on Thursday, September 7th. One investment analyst has rated the stock with a sell rating, four have given a hold rating, eight have given a buy rating and one has issued a strong buy rating to the stock. The company presently has an average rating of Buy and a consensus target price of $80.11.

Shares of Guidewire Software (NYSE GWRE) traded down $0.45 during mid-day trading on Friday, reaching $79.86. 55,242 shares of the company traded hands, compared to its average volume of 443,281. The stock has a market capitalization of $6,010.00, a price-to-earnings ratio of 191.21, a price-to-earnings-growth ratio of 24.22 and a beta of 1.23. Guidewire Software has a 12 month low of $49.18 and a 12 month high of $83.47.

Guidewire Software (NYSE:GWRE) last released its quarterly earnings results on Wednesday, September 6th. The technology company reported $0.59 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ 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 business had revenue of $181.10 million for the quarter, compared to analyst estimates of $168.61 million. During the same period in the previous year, the company earned $0.22 earnings per share. The business’s revenue for the quarter was up 28.3% on a year-over-year basis. equities research analysts forecast that Guidewire Software will post 0.21 EPS for the current fiscal year.

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In other news, CEO Marcus Ryu sold 25,000 shares of the company’s stock in a transaction that occurred on Wednesday, November 1st. The shares were sold at an average price of $78.80, for a total value of $1,970,000.00. Following the transaction, the chief executive officer now directly owns 114,178 shares in the company, valued at approximately $8,997,226.40. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO Richard Hart sold 375 shares of the stock in a transaction that occurred on Tuesday, September 5th. The stock was sold at an average price of $75.57, for a total transaction of $28,338.75. Following the sale, the chief financial officer now owns 3,819 shares in the company, valued at $288,601.83. The disclosure for this sale can be found here. Insiders sold a total of 114,194 shares of company stock worth $8,854,115 over the last quarter. 0.69% of the stock is currently owned by company insiders.

Several hedge funds and other institutional investors have recently bought and sold shares of GWRE. D.A. Davidson & CO. grew its position in shares of Guidewire Software by 2,270.8% in the 2nd quarter. D.A. Davidson & CO. now owns 1,541 shares of the technology company’s stock valued at $105,000 after buying an additional 1,476 shares during the last quarter. The Manufacturers Life Insurance Company grew its position in Guidewire Software by 7.3% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 2,205 shares of the technology company’s stock worth $151,000 after purchasing an additional 150 shares during the last quarter. BNP Paribas Arbitrage SA grew its position in Guidewire Software by 64.2% during the 3rd quarter. BNP Paribas Arbitrage SA now owns 2,030 shares of the technology company’s stock worth $158,000 after purchasing an additional 794 shares during the last quarter. Zurcher Kantonalbank Zurich Cantonalbank grew its position in Guidewire Software by 12.6% during the 2nd quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 2,536 shares of the technology company’s stock worth $174,000 after purchasing an additional 283 shares during the last quarter. Finally, CIBC Asset Management Inc purchased a new position in Guidewire Software during the 3rd quarter worth $200,000.

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.

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