Demystifying Guidewire Software: Insights From 16 Analyst Reviews

Ratings for Guidewire Software GWRE were provided by 16 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 7 8 1 0 0
Last 30D 1 0 0 0 0
1M Ago 5 6 1 0 0
2M Ago 0 2 0 0 0
3M Ago 1 0 0 0 0

In the assessment of 12-month price targets, analysts unveil insights for Guidewire Software, presenting an average target of $175.69, a high estimate of $200.00, and a low estimate of $165.00. This upward trend is evident, with the current average reflecting a 14.04% increase from the previous average price target of $154.06.

price target chart

Investigating Analyst Ratings: An Elaborate Study

The analysis of recent analyst actions sheds light on the perception of Guidewire Software by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Parker Lane Stifel Raises Buy $200.00 $175.00
Peter Heckmann DA Davidson Raises Buy $186.00 $168.00
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

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: 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: 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.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Guidewire Software's market standing. Stay informed and make data-driven decisions with 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: Delving into Financials

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Over the 3 months period, Guidewire Software showcased positive performance, achieving a revenue growth rate of 7.99% as of 31 July, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.

Net Margin: Guidewire Software's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 5.75%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Guidewire Software's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 1.28%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.79%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.33.

Analyst Ratings: What Are They?

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

Which Stocks Are Analysts Recommending Now?

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

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