Guidewire Software (NYSE:GWRE) Trading Down 5.8% After Earnings Miss

Guidewire Software, Inc. (NYSE:GWRE)’s stock price was down 5.8% during mid-day trading on Friday after the company announced weaker than expected quarterly earnings. The company traded as low as $181.20 and last traded at $176.12. Approximately 265,210 shares were traded during mid-day trading, a decline of 79% from the average daily volume of 1,258,145 shares. The stock had previously closed at $186.98.

The technology company reported $0.08 EPS for the quarter, missing analysts’ consensus estimates of $0.52 by ($0.44). The firm had revenue of $289.48 million for the quarter, compared to analysts’ expectations of $285.74 million. Guidewire Software had a return on equity of 2.38% and a net margin of 2.91%.

Analyst Ratings Changes

Several equities research analysts have issued reports on GWRE shares. JMP Securities reissued a “market outperform” rating and issued a $231.00 price objective on shares of Guidewire Software in a research report on Friday, December 6th. Royal Bank of Canada boosted their price objective on shares of Guidewire Software from $215.00 to $230.00 and gave the company an “outperform” rating in a research report on Friday, December 6th. JPMorgan Chase & Co. boosted their price objective on shares of Guidewire Software from $228.00 to $231.00 and gave the company an “overweight” rating in a research report on Friday. Needham & Company LLC reissued a “hold” rating on shares of Guidewire Software in a research report on Friday. Finally, Oppenheimer boosted their price target on shares of Guidewire Software from $220.00 to $230.00 and gave the company an “outperform” rating in a report on Friday, December 6th. One analyst has rated the stock with a sell rating, two have given a hold rating and ten have given a buy rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $206.08.

Insider Buying and Selling

In other Guidewire Software news, CEO Michael George Rosenbaum sold 5,932 shares of the company’s stock in a transaction that occurred on Tuesday, December 17th. The shares were sold at an average price of $171.06, for a total transaction of $1,014,727.92. Following the transaction, the chief executive officer now owns 281,730 shares in the company, valued at approximately $48,192,733.80. This represents a 2.06 % decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, President John P. Mullen sold 7,165 shares of the company’s stock in a transaction that occurred on Tuesday, December 17th. The shares were sold at an average price of $171.06, for a total transaction of $1,225,644.90. Following the transaction, the president now owns 182,096 shares in the company, valued at $31,149,341.76. The trade was a 3.79 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 42,656 shares of company stock worth $7,856,836 in the last 90 days. 0.48% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of GWRE. Versant Capital Management Inc acquired a new position in Guidewire Software during the 4th quarter valued at approximately $25,000. Ossiam acquired a new position in Guidewire Software during the 4th quarter valued at approximately $29,000. Assetmark Inc. increased its stake in Guidewire Software by 537.0% during the 3rd quarter. Assetmark Inc. now owns 172 shares of the technology company’s stock valued at $31,000 after purchasing an additional 145 shares in the last quarter. Point72 Hong Kong Ltd acquired a new position in Guidewire Software during the 3rd quarter valued at approximately $33,000. Finally, Cullen Frost Bankers Inc. acquired a new position in Guidewire Software during the 4th quarter valued at approximately $34,000.

Guidewire Software Price Performance

The firm’s fifty day moving average price is $194.63 and its 200 day moving average price is $184.40. The firm has a market capitalization of $14.51 billion, a PE ratio of 482.56, a P/E/G ratio of 37.21 and a beta of 1.31. The company has a current ratio of 2.66, a quick ratio of 2.66 and a debt-to-equity ratio of 0.53.

About Guidewire Software

Guidewire Software, Inc provides a platform for property and casualty (P&C) insurers worldwide. The company offers Guidewire InsuranceSuite Cloud, such as PolicyCenter Cloud, BillingCenter Cloud, and ClaimCenter Cloud applications. It also provides Guidewire InsuranceNow, a cloud-based platform that offers policy, billing, and claims management functionality to insurers; and Guidewire InsuranceSuite for Self-Managed.