The Analyst Verdict: Guidewire Software In The Eyes Of 10 Experts

Ratings for Guidewire Software GWRE were provided by 10 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 3 5 1 1 0
Last 30D 0 1 0 0 0
1M Ago 2 4 0 1 0
2M Ago 0 0 0 0 0
3M Ago 1 0 1 0 0

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $134.0, along with a high estimate of $152.00 and a low estimate of $95.00. Surpassing the previous average price target of $124.30, the current average has increased by 7.8%.

price target chart

Deciphering Analyst Ratings: An In-Depth Analysis

In examining recent analyst actions, we gain insights into how financial experts perceive Guidewire Software. The following summary 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
Joe Vruwink Baird Raises Outperform $152.00 $140.00
Rishi Jaluria RBC Capital Maintains Outperform $130.00 $130.00
Alexei Gogolev JP Morgan Raises Overweight $145.00 $133.00
Ken Wong Oppenheimer Raises Outperform $140.00 $130.00
Parker Lane Stifel Raises Buy $140.00 $130.00
Michael Turrin Wells Fargo Raises Overweight $140.00 $130.00
Brad Sills B of A Securities Raises Underperform $95.00 $80.00
Matthew Vanvliet BTIG Raises Buy $140.00 $135.00
Tyler Radke Citigroup Raises Neutral $122.00 $109.00
Peter Heckmann DA Davidson Raises Buy $136.00 $126.00

Key Insights:

  • Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Guidewire Software. This offers insight into analysts' perspectives on the current state of the company.
  • Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Guidewire Software compared to the broader market.
  • Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Guidewire Software's stock. This examination reveals shifts in analysts' expectations over time.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Guidewire Software's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Guidewire Software analyst ratings.

Get to Know Guidewire Software Better

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's Economic Impact: An Analysis

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Negative Revenue Trend: Examining Guidewire Software's financials over 3 months reveals challenges. As of 30 April, 2024, the company experienced a decline of approximately -0.09% in revenue growth, reflecting a decrease 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: Guidewire Software's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of -2.28%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Guidewire Software's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -0.43%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Guidewire Software's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of -0.27%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: Guidewire Software's debt-to-equity ratio is below the industry average. With a ratio of 0.34, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

The Core of Analyst Ratings: What Every Investor Should Know

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per 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.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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

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