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

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.”

Several other brokerages have also recently issued reports on GWRE. Citigroup Inc. reissued a “buy” rating and set a $85.00 target price (up previously from $79.00) on shares of Guidewire Software in a report on Thursday, September 7th. TheStreet raised shares of Guidewire Software from a “c+” rating to a “b” rating in a report on Wednesday, September 6th. Deutsche Bank AG reaffirmed a “buy” rating and issued a $85.00 price objective (up previously from $80.00) on shares of Guidewire Software in a report on Monday, October 2nd. BidaskClub cut shares of Guidewire Software from a “strong-buy” rating to a “buy” rating in a report on Wednesday. Finally, KeyCorp reaffirmed a “buy” rating and issued a $86.00 price objective on shares of Guidewire Software in a report on Friday, September 29th. Five research analysts have rated the stock with a hold rating, eight have issued a buy rating and one has assigned a strong buy rating to the stock. Guidewire Software presently has a consensus rating of “Buy” and an average target price of $80.22.

Shares of Guidewire Software (NYSE GWRE) traded up 1.01% during midday trading on Friday, hitting $78.17. 101,481 shares of the stock were exchanged. The firm’s 50-day moving average is $77.72 and its 200-day moving average is $69.39. The stock has a market cap of $5.86 billion, a price-to-earnings ratio of 279.18 and a beta of 1.22. Guidewire Software has a 12 month low of $49.18 and a 12 month high of $81.46.

Guidewire Software (NYSE:GWRE) last issued its earnings results on Wednesday, September 6th. The technology company reported $0.59 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ 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 firm had revenue of $181.10 million during the quarter, compared to analysts’ expectations of $168.61 million. During the same quarter last year, the company posted $0.22 earnings per share. The firm’s revenue was up 28.3% compared to the same quarter last year. Equities research analysts predict that Guidewire Software will post $0.98 earnings per share for the current year.

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In other news, insider Ali Kheirolomoom sold 2,047 shares of Guidewire Software stock in a transaction dated Wednesday, September 20th. The shares were sold at an average price of $77.06, for a total value of $157,741.82. Following the sale, the insider now owns 1,941 shares in the company, valued at $149,573.46. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO Marcus Ryu sold 25,000 shares of Guidewire Software stock in a transaction dated Tuesday, August 1st. The shares were sold at an average price of $72.34, for a total transaction of $1,808,500.00. Following the completion of the sale, the chief executive officer now owns 164,139 shares in the company, valued at approximately $11,873,815.26. The disclosure for this sale can be found here. In the last quarter, insiders sold 114,870 shares of company stock worth $8,738,930. Company insiders own 0.96% of the company’s stock.

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Tocqueville Asset Management L.P. boosted its position in Guidewire Software by 0.3% during the third quarter. Tocqueville Asset Management L.P. now owns 15,650 shares of the technology company’s stock worth $939,000 after acquiring an additional 50 shares during the last quarter. Stifel Financial Corp boosted its position in Guidewire Software by 1.2% during the second quarter. Stifel Financial Corp now owns 5,044 shares of the technology company’s stock worth $312,000 after acquiring an additional 58 shares during the last quarter. Teacher Retirement System of Texas boosted its position in Guidewire Software by 1.1% during the second quarter. Teacher Retirement System of Texas now owns 5,906 shares of the technology company’s stock worth $406,000 after acquiring an additional 63 shares during the last quarter. Pacer Advisors Inc. boosted its position in Guidewire Software by 1.0% during the second quarter. Pacer Advisors Inc. now owns 8,178 shares of the technology company’s stock worth $562,000 after acquiring an additional 78 shares during the last quarter. Finally, TD Asset Management Inc. boosted its position in Guidewire Software by 0.3% during the second quarter. TD Asset Management Inc. now owns 29,400 shares of the technology company’s stock worth $1,816,000 after acquiring an additional 100 shares during the last quarter.

Guidewire Software Company Profile

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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