Stock Traders Purchase High Volume of Call Options on Guidewire Software (NYSE:GWRE)
by Danessa Lincoln · The Markets DailyGuidewire Software, Inc. (NYSE:GWRE – Get Free Report) was the target of some unusual options trading on Wednesday. Stock investors bought 1,297 call options on the stock. This represents an increase of 1,563% compared to the average volume of 78 call options.
Guidewire Software Trading Up 1.5%
Guidewire Software stock opened at $150.82 on Friday. The business has a 50-day simple moving average of $145.32 and a two-hundred day simple moving average of $191.19. The company has a market cap of $12.77 billion, a P/E ratio of 68.56, a P/E/G ratio of 6.41 and a beta of 1.05. Guidewire Software has a 52-week low of $120.37 and a 52-week high of $272.60. The company has a quick ratio of 2.93, a current ratio of 2.93 and a debt-to-equity ratio of 0.45.
Guidewire Software (NYSE:GWRE – Get Free Report) last issued its quarterly earnings data on Thursday, March 5th. The technology company reported $1.17 earnings per share for the quarter, topping the consensus estimate of $0.77 by $0.40. The firm had revenue of $359.10 million for the quarter, compared to analysts’ expectations of $342.88 million. Guidewire Software had a net margin of 14.11% and a return on equity of 13.44%. The business’s quarterly revenue was up 24.0% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.51 EPS. Analysts predict that Guidewire Software will post 0.52 EPS for the current year.
Guidewire Software announced that its Board of Directors has approved a share buyback plan on Thursday, January 8th that allows the company to buyback $500.00 million in shares. This buyback authorization allows the technology company to purchase up to 3.1% of its shares through open market purchases. Shares buyback plans are typically an indication that the company’s management believes its shares are undervalued.
Analyst Upgrades and Downgrades
Several research firms have issued reports on GWRE. Stifel Nicolaus lowered their target price on shares of Guidewire Software from $300.00 to $250.00 and set a “buy” rating on the stock in a research note on Friday, March 6th. Wells Fargo & Company decreased their price objective on shares of Guidewire Software from $250.00 to $210.00 and set an “overweight” rating for the company in a report on Wednesday, February 4th. Weiss Ratings restated a “hold (c)” rating on shares of Guidewire Software in a research report on Thursday, January 22nd. Oppenheimer dropped their target price on shares of Guidewire Software from $300.00 to $250.00 and set an “outperform” rating on the stock in a report on Tuesday, February 24th. Finally, Citizens Jmp reaffirmed a “market outperform” rating and issued a $281.00 target price on shares of Guidewire Software in a research report on Wednesday, December 10th. One analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $249.85.
View Our Latest Analysis on GWRE
Insiders Place Their Bets
In other news, insider James Winston King sold 1,001 shares of the business’s stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $163.86, for a total value of $164,023.86. Following the completion of the transaction, the insider owned 32,701 shares in the company, valued at $5,358,385.86. The trade was a 2.97% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CAO David Franklin Peterson sold 273 shares of the company’s stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $163.86, for a total value of $44,733.78. Following the transaction, the chief accounting officer directly owned 12,533 shares in the company, valued at approximately $2,053,657.38. The trade was a 2.13% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 30,295 shares of company stock worth $4,819,906. 0.46% of the stock is owned by corporate insiders.
Institutional Inflows and Outflows
Several institutional investors and hedge funds have recently modified their holdings of the business. Advisors Asset Management Inc. purchased a new stake in shares of Guidewire Software in the 1st quarter worth $25,000. Root Financial Partners LLC purchased a new position in Guidewire Software during the third quarter valued at $29,000. Measured Wealth Private Client Group LLC bought a new stake in Guidewire Software during the third quarter valued at about $29,000. Newbridge Financial Services Group Inc. bought a new stake in Guidewire Software during the second quarter valued at about $30,000. Finally, Cornerstone Planning Group LLC increased its position in Guidewire Software by 620.0% in the third quarter. Cornerstone Planning Group LLC now owns 144 shares of the technology company’s stock worth $34,000 after buying an additional 124 shares in the last quarter.
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.