Demystifying Guidewire Software: Insights From 6 Analyst Reviews

Providing a diverse range of perspectives from bullish to bearish, 6 analysts have published ratings on Guidewire Software GWRE in the last three months.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 2 4 0 0 0
Last 30D 0 1 0 0 0
1M Ago 0 0 0 0 0
2M Ago 0 1 0 0 0
3M Ago 2 2 0 0 0

Analysts have recently evaluated Guidewire Software and provided 12-month price targets. The average target is $113.67, accompanied by a high estimate of $125.00 and a low estimate of $100.00. This current average reflects an increase of 15.05% from the previous average price target of $98.80.

price target chart

Decoding Analyst Ratings: A Detailed Look

The standing of Guidewire Software among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Alexander Sklar Raymond James Announces Outperform $125.00 -
Ken Wong Oppenheimer Raises Outperform $115.00 $100.00
Patrick Walravens JMP Securities Raises Market Outperform $110.00 $100.00
Kevin Kumar Goldman Sachs Raises Buy $115.00 $103.00
Parker Lane Stifel Raises Buy $100.00 $95.00
Joe Vruwink Baird Raises Outperform $117.00 $96.00

Key Insights:

  • Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Guidewire Software. This information provides a snapshot of how analysts perceive the current state of the company.
  • Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Guidewire Software compared to the broader market.
  • Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Guidewire Software's stock. This comparison reveals trends in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Guidewire Software's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Guidewire Software analyst ratings.

About Guidewire Software

Guidewire Software provides software solutions for property and casualty insurers. Flagship product InsuranceSuite is an on-premises system of record and comprises ClaimCenter, a claims management system; PolicyCenter, a policy management system including policy definitions, quotas, issuance, maintenance, and renewal; and BillingCenter, for billing management, payment plans, and agent commissions. The company also offers InsuranceNow, a cloud-based offering, as well as a variety of other add-on applications.

Guidewire Software: Financial Performance Dissected

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Positive Revenue Trend: Examining Guidewire Software's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 6.21% as of 31 October, 2023, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of -13.05%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Guidewire Software's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -2.25%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Guidewire Software's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -1.37%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Guidewire Software's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.36.

The Basics of Analyst Ratings

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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