What Analysts Are Saying About Guidewire Software Stock

Analysts' ratings for Guidewire Software GWRE over the last quarter vary from bullish to bearish, as provided by 16 analysts.

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 5 10 1 0 0
Last 30D 0 0 1 0 0
1M Ago 4 8 0 0 0
2M Ago 1 0 0 0 0
3M Ago 0 2 0 0 0

Insights from analysts' 12-month price targets are revealed, presenting an average target of $171.56, a high estimate of $185.00, and a low estimate of $150.00. This current average reflects an increase of 14.76% from the previous average price target of $149.50.

price target chart

Diving into Analyst Ratings: An In-Depth Exploration

A clear picture of Guidewire Software's perception among financial experts is painted 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
Tyler Radke Citigroup Raises Neutral $165.00 $123.00
Parker Lane Stifel Raises Buy $175.00 $140.00
Peter Heckmann DA Davidson Maintains Buy $168.00 $168.00
Aaron Kimson JMP Securities Raises Market Outperform $179.00 $141.00
Michael Turrin Wells Fargo Raises Overweight $185.00 $175.00
Rishi Jaluria RBC Capital Raises Outperform $180.00 $170.00
Ken Wong Oppenheimer Raises Outperform $185.00 $170.00
Joe Vruwink Baird Raises Outperform $175.00 $165.00
Joe Vruwink Baird Raises Outperform $165.00 $152.00
Matthew Vanvliet BTIG Raises Buy $165.00 $140.00
Peter Heckmann DA Davidson Raises Buy $168.00 $142.00
Michael Turrin Wells Fargo Raises Overweight $175.00 $150.00
Ken Wong Oppenheimer Raises Outperform $170.00 $140.00
Kevin Kumar Goldman Sachs Raises Buy $170.00 $146.00
Rishi Jaluria RBC Capital Raises Outperform $170.00 $130.00
Michael Turrin Wells Fargo Raises Overweight $150.00 $140.00

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: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Guidewire Software compared to the broader market.
  • Price Targets: Gaining insights, analysts provide estimates for the future value of Guidewire Software's stock. This comparison reveals trends in analysts' expectations over time.

To gain a panoramic view of Guidewire Software's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Guidewire Software analyst ratings.

Unveiling the Story Behind 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.

Revenue Growth: Over the 3 months period, Guidewire Software showcased positive performance, achieving a revenue growth rate of 21.12% as of 31 July, 2024. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Information Technology sector.

Net Margin: Guidewire Software's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 5.75%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Guidewire Software's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 1.28%, 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 0.79%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Guidewire Software's debt-to-equity ratio stands notably higher than the industry average, reaching 0.32. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

How Are Analyst Ratings Determined?

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.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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

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