Goosehead Insurance (NASDAQ:GSHD) Shares Up 6.5% Following Strong Earnings

Goosehead Insurance (NASDAQ:GSHD)’s share price rose 6.5% during trading on Thursday following a stronger than expected earnings report. The stock traded as high as $54.54 and last traded at $54.7630. Approximately 361,204 shares were traded during mid-day trading, a decline of 27% from the average daily volume of 496,886 shares. The stock had previously closed at $51.40.

The company reported $0.64 earnings per share for the quarter, topping the consensus estimate of $0.47 by $0.17. The firm had revenue of $95.63 million for the quarter, compared to the consensus estimate of $103.30 million. Goosehead Insurance had a net margin of 8.78% and a negative return on equity of 21.00%. The firm’s revenue for the quarter was up 20.6% on a year-over-year basis. During the same period in the prior year, the firm earned $0.49 EPS.

Analyst Upgrades and Downgrades

GSHD has been the topic of a number of recent research reports. JPMorgan Chase & Co. upped their price objective on Goosehead Insurance from $55.00 to $60.00 and gave the stock a “neutral” rating in a research report on Monday, July 13th. Bank of America decreased their target price on Goosehead Insurance from $43.00 to $37.00 and set an “underperform” rating for the company in a report on Tuesday, April 14th. Piper Sandler boosted their target price on Goosehead Insurance from $52.00 to $72.00 and gave the stock an “overweight” rating in a research note on Wednesday, July 15th. Royal Bank Of Canada upped their price target on Goosehead Insurance from $55.00 to $58.00 and gave the stock a “sector perform” rating in a report on Thursday. Finally, Weiss Ratings raised Goosehead Insurance from a “sell (d)” rating to a “sell (d+)” rating in a research report on Thursday, July 9th. Seven equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, Goosehead Insurance presently has a consensus rating of “Hold” and an average target price of $68.27.

Insider Activity

In related news, major shareholder & Robyn Jones Descendants Mark sold 9,588 shares of the stock in a transaction on Wednesday, May 27th. The stock was sold at an average price of $40.76, for a total value of $390,806.88. Following the transaction, the insider owned 6,995,180 shares of the company’s stock, valued at $285,123,536.80. This represents a 0.14% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, major shareholder Patrick Ryan Langston bought 2,800 shares of the company’s stock in a transaction that occurred on Friday, May 29th. The stock was acquired at an average cost of $35.56 per share, for a total transaction of $99,568.00. Following the acquisition, the insider directly owned 7,800 shares of the company’s stock, valued at $277,368. The trade was a 56.00% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last quarter, insiders have acquired 12,800 shares of company stock valued at $480,718 and have sold 219,192 shares valued at $9,092,267. 38.07% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Wasatch Advisors LP raised its position in shares of Goosehead Insurance by 32.3% during the 1st quarter. Wasatch Advisors LP now owns 2,292,227 shares of the company’s stock worth $97,786,000 after acquiring an additional 559,087 shares in the last quarter. T. Rowe Price Investment Management Inc. boosted its holdings in Goosehead Insurance by 38.5% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 2,002,003 shares of the company’s stock valued at $147,448,000 after purchasing an additional 556,293 shares in the last quarter. Durable Capital Partners LP boosted its holdings in Goosehead Insurance by 126.5% in the third quarter. Durable Capital Partners LP now owns 1,542,186 shares of the company’s stock valued at $114,769,000 after purchasing an additional 861,374 shares in the last quarter. DF Dent & Co. Inc. increased its stake in Goosehead Insurance by 3.2% in the fourth quarter. DF Dent & Co. Inc. now owns 1,044,660 shares of the company’s stock valued at $76,939,000 after purchasing an additional 32,246 shares during the last quarter. Finally, State Street Corp increased its stake in Goosehead Insurance by 1.4% in the second quarter. State Street Corp now owns 1,027,500 shares of the company’s stock valued at $108,412,000 after purchasing an additional 14,311 shares during the last quarter.

Goosehead Insurance Price Performance

The company’s 50 day simple moving average is $44.51 and its 200 day simple moving average is $49.11. The company has a market capitalization of $2.09 billion, a PE ratio of 42.88, a price-to-earnings-growth ratio of 1.91 and a beta of 1.41.

About Goosehead Insurance

Goosehead Insurance (NASDAQ: GSHD) is a technology-driven insurance agency that connects consumers with a broad range of personal and commercial insurance products through an extensive network of independent insurance advisors. The company specializes in homeowners, auto, flood, dwelling fire, umbrella, life, and commercial lines coverage, working with multiple national and regional carriers to offer tailored policies. By combining advanced quoting tools with local market expertise, Goosehead streamlines the insurance shopping process and helps clients find competitive coverage options.

Founded in 2003 and headquartered in Westlake, Texas, Goosehead has grown its footprint across more than 40 states in the U.S.