Guidewire Software (GWRE) Upgraded to “Buy” at Zacks Investment Research

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Zacks Investment Research upgraded shares of Guidewire Software (NYSE:GWRE) from a hold rating to a buy rating in a research report sent to investors on Tuesday. They currently have $107.00 price target on the technology company’s stock.

According to Zacks, “Guidewire Software is benefiting from strong adoption of several cloud-based products. Further, growth in Services revenues and License revenues remains a key catalyst. The company’s elaborate partnership programs and strategic collaborations are major growth drivers. The company’s Partner Connect Program has been implemented worldwide, benefiting its customers in the property and casualty insurance industry. Guidewire’s acquisition strategies are also a major contributor to its growth. Notably, shares of Guidewire have outperformed the industry in the past year. Also, Guidewire’s cloud deployment partner, Amazon’s Web Services continues to gain momentum and this bodes well for it. However, transition to a subscription based model from a term license based one, might hurt the top line in the near term.”

Several other analysts also recently commented on GWRE. Guggenheim initiated coverage on shares of Guidewire Software in a report on Tuesday, August 7th. They issued a buy rating and a $115.00 price objective on the stock. Piper Jaffray Companies upped their price objective on shares of Guidewire Software to $110.00 and gave the company an overweight rating in a report on Tuesday, August 28th. Citigroup initiated coverage on shares of Guidewire Software in a report on Tuesday, September 4th. They issued a neutral rating and a $101.00 price objective on the stock. TheStreet raised shares of Guidewire Software from a c rating to a b- rating in a report on Thursday, September 6th. Finally, Stifel Nicolaus upped their price objective on shares of Guidewire Software from $93.00 to $106.00 and gave the company a hold rating in a report on Friday, September 21st. Four research analysts have rated the stock with a hold rating and nine have issued a buy rating to the company’s stock. The company currently has a consensus rating of Buy and an average target price of $109.90.

NYSE:GWRE opened at $88.78 on Tuesday. The company has a market cap of $8.14 billion, a price-to-earnings ratio of 986.44, a P/E/G ratio of 49.51 and a beta of 1.19. Guidewire Software has a twelve month low of $70.06 and a twelve month high of $107.79. The company has a current ratio of 5.43, a quick ratio of 5.43 and a debt-to-equity ratio of 0.21.

Guidewire Software (NYSE:GWRE) last released its earnings results on Wednesday, September 5th. The technology company reported $0.81 earnings per share for the quarter, topping the consensus estimate of $0.76 by $0.05. The company had revenue of $248.60 million for the quarter, compared to the consensus estimate of $238.86 million. Guidewire Software had a negative net margin of 2.97% and a positive return on equity of 1.83%. Guidewire Software’s revenue was up 37.3% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.59 EPS. On average, equities research analysts expect that Guidewire Software will post 0.26 earnings per share for the current year.

In related news, CEO Marcus Ryu sold 20,822 shares of the stock in a transaction on Monday, October 1st. The shares were sold at an average price of $100.34, for a total transaction of $2,089,279.48. Following the sale, the chief executive officer now directly owns 21,098 shares of the company’s stock, valued at $2,116,973.32. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Craig Conway sold 400 shares of the stock in a transaction on Monday, July 16th. The stock was sold at an average price of $95.28, for a total transaction of $38,112.00. Following the sale, the director now directly owns 9,393 shares in the company, valued at $894,965.04. The disclosure for this sale can be found here. Insiders sold a total of 88,630 shares of company stock worth $8,733,135 over the last ninety days. Insiders own 0.69% of the company’s stock.

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Partner Fund Management L.P. purchased a new stake in Guidewire Software during the second quarter worth $27,012,000. Royal Bank of Canada boosted its holdings in Guidewire Software by 6.0% during the first quarter. Royal Bank of Canada now owns 47,143 shares of the technology company’s stock worth $3,812,000 after buying an additional 2,670 shares in the last quarter. Schwab Charles Investment Management Inc. boosted its holdings in Guidewire Software by 6.4% during the second quarter. Schwab Charles Investment Management Inc. now owns 419,050 shares of the technology company’s stock worth $37,204,000 after buying an additional 25,326 shares in the last quarter. Millennium Management LLC purchased a new stake in Guidewire Software during the first quarter worth $7,646,000. Finally, Amalgamated Bank boosted its holdings in Guidewire Software by 24.1% during the second quarter. Amalgamated Bank now owns 18,694 shares of the technology company’s stock worth $1,660,000 after buying an additional 3,632 shares in the last quarter.

About Guidewire Software

Guidewire Software, Inc provides software products for property and casualty insurers worldwide. The company offers Guidewire InsuranceSuite comprising Guidewire PolicyCenter, BillingCenter, and ClaimCenter applications. It also provides Guidewire InsuranceNow, a cloud-based platform, which offers policy, billing, and claims management functionality to insurers that prefer to subscribe to a cloud-based solution.

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