Guidewire Software, Inc. (NYSE:GWRE) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a research note issued to investors on Wednesday.

According to Zacks, “Guidewire Software, a property and casualty insurance based software solutions provider, reported better-than-expected fiscal fourth-quarter 2017 results. The impressive top and bottom lines were driven by higher service activities, an additional $16.2 million of hosting revenues from ISCS, which the company acquired in February 2017; and certain early payments from term licenses. Notably, regular customer addition via cross-selling of its product suites is a positive. The company’s shift from term license to a cloud-based model is a tailwind for the company in the long run as the industry shifts toward cloud infrastructure. However, the costs related to the shift will put pressure on margins in the near term and affect the top line as term license revenues include advance payments whereas subscription-based revenues are a bit delayed. Nevertheless, the company’s shares have outperformed the industry on a year-to-date basis.”

GWRE has been the topic of several other research reports. Piper Jaffray Companies reaffirmed a “buy” rating and set a $80.00 target price on shares of Guidewire Software in a research note on Sunday, August 27th. BidaskClub raised shares of Guidewire Software from a “buy” rating to a “strong-buy” rating in a research note on Saturday, August 19th. TheStreet lowered Guidewire Software from a “b-” rating to a “c+” rating in a report on Monday, August 14th. Bank of America Corporation lifted their price target on Guidewire Software from $74.00 to $76.00 and gave the stock a “neutral” rating in a report on Thursday, September 7th. Finally, Deutsche Bank AG reiterated a “buy” rating and set a $85.00 price target (up previously from $80.00) on shares of Guidewire Software in a report on Monday, October 2nd. Five analysts have rated the stock with a hold rating, seven have assigned a buy rating and two have assigned a strong buy rating to the company’s stock. Guidewire Software has a consensus rating of “Buy” and a consensus price target of $80.67.

Guidewire Software (NYSE GWRE) traded up 1.04% during midday trading on Wednesday, reaching $79.38. 623,950 shares of the company were exchanged. The firm’s 50 day moving average price is $76.92 and its 200-day moving average price is $68.56. Guidewire Software has a 52 week low of $49.18 and a 52 week high of $81.46. The stock has a market capitalization of $5.95 billion, a P/E ratio of 283.50 and a beta of 1.22.

Guidewire Software (NYSE:GWRE) last announced its earnings results on Wednesday, September 6th. The technology company reported $0.59 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.39 by $0.20. Guidewire Software had a net margin of 4.13% and a return on equity of 3.59%. The company had revenue of $181.10 million for the quarter, compared to analysts’ expectations of $168.61 million. During the same quarter in the previous year, the company posted $0.22 EPS. The firm’s quarterly revenue was up 28.3% on a year-over-year basis. Equities analysts forecast that Guidewire Software will post $0.98 EPS for the current fiscal year.

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In related news, CFO Richard Hart sold 375 shares of the business’s stock in a transaction dated Thursday, October 5th. The shares were sold at an average price of $77.40, for a total value of $29,025.00. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO Marcus Ryu sold 10,341 shares of the business’s stock in a transaction dated Friday, July 14th. The shares were sold at an average price of $69.65, for a total transaction of $720,250.65. Following the completion of the sale, the chief executive officer now owns 199,480 shares in the company, valued at $13,893,782. The disclosure for this sale can be found here. In the last quarter, insiders have sold 125,419 shares of company stock worth $9,462,648. Insiders own 0.96% of the company’s stock.

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Ardsley Advisory Partners purchased a new stake in Guidewire Software in the 2nd quarter valued at about $550,000. Wasatch Advisors Inc. purchased a new stake in Guidewire Software in the 2nd quarter valued at about $28,037,000. Public Employees Retirement System of Ohio raised its holdings in Guidewire Software by 176.5% in the 2nd quarter. Public Employees Retirement System of Ohio now owns 89,627 shares of the technology company’s stock valued at $6,158,000 after buying an additional 57,218 shares during the period. Koch Industries Inc. purchased a new stake in Guidewire Software in the 2nd quarter valued at about $304,000. Finally, DF Dent & Co. Inc. raised its holdings in Guidewire Software by 49.3% in the 2nd quarter. DF Dent & Co. Inc. now owns 13,775 shares of the technology company’s stock valued at $946,000 after buying an additional 4,550 shares during the period.

About Guidewire Software

Guidewire Software, Inc is a provider of software products for property and casualty (P&C) insurers. The Company’s software serves as a technology platform for P&C insurance carriers. The Company’s InsurancePlatform consists of three elements: core transaction processing, data management and analytics, and digital engagement.

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Analyst Recommendations for Guidewire Software (NYSE:GWRE)

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