On November 17, 2023, James Winston King, an insider at Guidewire Software, Inc. (NYSE: GWRE), sold 798 shares of the company’s stock. The shares were sold at an average price of $222.54, amounting to a total transaction value of $177,586.92. After this sale, King holds 37,019 shares valued at approximately $8,238,208.26, reflecting a reduction of 2.11% in his holdings.
The sale was officially disclosed in a filing with the Securities and Exchange Commission (SEC), which can be reviewed on the SEC’s website. This transaction is part of a broader pattern of trading activity involving insiders at Guidewire Software.
Market Reaction and Stock Performance
Following the transaction, Guidewire Software’s stock experienced a decline. During midday trading on the same day, the stock fell by 2.8%, trading down $6.18 to reach $216.33. The trading volume for the day was 954,148 shares, surpassing the average volume of 903,025 shares. Guidewire’s stock has shown volatility, with a 50-day moving average of $238.24 and a 200-day moving average of $229.07. The company currently boasts a market capitalization of $18.39 billion and a price-to-earnings ratio of 270.41.
In the past year, Guidewire’s stock has fluctuated between a low of $165.08 and a high of $272.60. The company maintains a quick ratio and current ratio of 2.77, indicating strong liquidity, while its debt-to-equity ratio stands at 0.46.
Analyst Insights and Institutional Activity
Recent commentary from equities research analysts has been mixed yet generally optimistic about Guidewire Software. For instance, DA Davidson raised its price target from $246.00 to $250.00, maintaining a “neutral” rating. Meanwhile, both Raymond James Financial and The Goldman Sachs Group provided positive outlooks, raising price targets to $275.00 and $305.00, respectively.
Currently, one analyst has rated Guidewire with a “Strong Buy,” while nine analysts have given it a “Buy” rating, four have issued a “Hold,” and one has assigned a “Sell” rating. According to MarketBeat, the consensus rating for Guidewire Software is “Moderate Buy,” with a consensus price target of $274.08.
In addition to insider trading activity, several institutional investors have altered their positions in Guidewire. American Trust increased its stake by 3.9% during the third quarter, now holding 1,632 shares valued at approximately $375,000. Other notable changes include United Capital Financial Advisors LLC, which raised its holdings by an impressive 302.8%, now owning 4,415 shares valued at about $1,015,000.
Guidewire Software, Inc. provides a robust platform for property and casualty insurers globally. It offers various cloud-based solutions such as Guidewire InsuranceSuite Cloud and Guidewire InsuranceNow, addressing the needs of insurers in policy, billing, and claims management.
As the market reacts to insider trading and analysts’ evaluations, Guidewire Software continues to be a focal point for investors and analysts alike, reflecting the dynamic nature of the technology sector.
