The stock of Guidewire Software Inc. (NYSE:GWRE) increased by $0.01 on Friday to finish at $82.60, up 0.01 percent. The last five days have seen an average of 497,060 shares of common stock traded. 22 times new highs were reached in the current year, with a gain of $20.04. The average number of shares traded over the last 20 days was 466,125, while the average volume over the last 50 days totaled 763,290.
GWRE stock appreciated 2.47% since last month. On 07/12/23, the company’s shares reached a one-month low of $77.06. The stock touched a high of $86.79 on 08/01/23, after rallying from a low of $52.08 in 52 weeks. The price of GWRE stock has risen by 32.03% or $20.04 this year, reaching a new high 22 times. Still, the stock price is down -4.83% from the 52-week high.
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Insider Transactions
GWRE stock investors should be aware that Guidewire Software Inc. (GWRE) stock had its last reported insider trading activity 54 days ago on Jun 21. On Jun 21, President & COO Hung Priscilla sold 2,513 shares at $70.18 each. This transaction resulted in the insider making $176,362. On Jun 21, King James Winston sold 1,915 shares at a price of US$70.18. After the transaction, the insider now owns 32,776 shares. Chief Financial Officer Cooper Jeffrey Elliott had earlier sold 1,254 shares on Jun 21 for $70.18 a share. The transaction was completed for $88,006.
Valuation Metrics
Beta for the stock is 1.21. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 7.64, the price-to-book (PB) ratio of 5.66.
Financial Health
For the three months ended April 29, Guidewire Software Inc.’s quick ratio was 3.70, while its current ratio was 3.70, indicating its ability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending April 29 is 0.33, and the total debt to equity ratio is 0.33. As far as profitability goes, gross margin for the trailing twelve months is 46.60% percent. Guidewire Software Inc.’s EBITDA margin for the year ended April 29 was -18.16%, whereas its operating margin stood at -21.30% for the same period. Based on annual data, it had gross profit of $352.22 million and revenue of $812.61 million.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. GWRE’s return on assets (ROA) during the last 12 months has been -7.60%. There was a -8.30% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was -12.30%.
Earnings Surprise
According to Guidewire Software Inc.’s quarterly financial report for the quarter that ended April 29, it had $396.74 million in total debt versus $421.2 million in cash and short-term investments. A lower net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $207.49 million, while revenues rose by 4.84% to $232.61 million. It was predicted that Guidewire Software Inc.’s quarterly earnings would be -$0.08, but it ended up being -$0.14, beating the consensus by 42.90%. EBITDA was -$49.04 million for the quarter. At the end of Guidewire Software Inc.’s most recent quarter ended April 29, its liabilities totaled 721.42 million, while its total debt was $439.55 million. Equity owned by shareholders amounts to $81.44 million.
Technical Picture
Here’s a quick look at Guidewire Software Inc.’s (GWRE) price momentum from a technical perspective. As of 11 August, the RSI 9-day stood at 54.14%, suggesting the stock is Neutral, with a 29.82% historical volatility rate.
The stochastic %K and %D were 50.50% and 52.41% respectively, while the average true range (ATR) was 2.19. Based on the 14-day stochastic reading of 49.33%, the RSI (14) reading is 56.44%. On the 9-day MACD Oscillator, the stock is at -1.18, and the 14-day reading is at -0.43.
Analyst Ratings
In its most recent analyst report, Stifel raised its rating on Guidewire Software Inc. (NYSE: GWRE) to a Buy. Prior to this, analysts firm rated the stock as a Hold. Analysts have assigned Guidewire Software Inc. (GWRE) an Overweight rating. GWRE is a stock that is recommended for selling by 1 brokerage firm, while 5 companies recommend holding. The stock is underweighted by 1 analyst. Among the analysts who rate the stock, 0 rates it overweight and 9 others recommend it as a buy.
What is GWRE’s price target for the next 12 months?
The current consensus forecast for the stock is between $65.00 and $95.00, with a median target price of $85.00. In analyzing these forecasts, the average price target given by analysts for Guidewire Software Inc. (GWRE) is $84.77.
