A better buy-in window may exist right now for Guidewire Software Inc. (GWRE)

Guidewire Software Inc. (NYSE: GWRE) stock fell -2.58% on Friday to $73.38 against a previous-day closing price of $75.32. With 0.25 million shares changed hands, the volume of the stock remained lighter than its average volume of 0.57 million shares. During the session, the Software – Application company that operates in wider Technology sector, reached to the highest price of $75.52 whereas the lowest price it dropped to was $73.01. The 52-week range on GWRE shows that it touched its highest point at $130.95 and its lowest point at $69.06 during that stretch. It currently has a 1-year price target of $100.67. Beta for the stock currently stands at 1.31.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of GWRE was up-trending over the past week, with a rise of 1.61%, but this was down by -5.83% over a month. Three-month performance dropped to -19.24% while six-month performance fell -26.38%. The stock lost -35.57% in the past year, while it has lost -35.37% so far this year. A look at the trailing 12-month EPS for GWRE yields -1.80 with Next year EPS estimates of -0.18. For the next quarter, that number is -0.01. This implies an EPS growth rate of -238.10% for this year and 85.40% for next year.

Float and Shares Shorts:

At present, 83.69 million GWRE shares are outstanding with a float of 83.59 million shares on hand for trading. On Apr 28, 2022, short shares totaled 3.3 million, which was 3.95% higher than short shares on Mar 30, 2022. In addition to Mr. Michael George Rosenbaum as the firm’s CEO & Director, Mr. Jeffrey Elliott Cooper serves as its Chief Financial Officer.

Institutional Ownership:

Through their ownership of 101.78% of GWRE’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 6.80% of GWRE, in contrast to 52.72% held by mutual funds. Shares owned by individuals account for 47.89%. As the largest shareholder in GWRE with 8.95% of the stake, The Vanguard Group, Inc. holds 7,502,386 shares worth 7,502,386. A second-largest stockholder of GWRE, BAMCO, Inc., holds 5,814,960 shares, controlling over 6.94% of the firm’s shares. Principal Global Investors LLC is the third largest shareholder in GWRE, holding 5,197,607 shares or 6.20% stake. With a 4.48% stake in GWRE, the Principal Investors – Mid Cap Fun is the largest stakeholder. A total of 3,757,552 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.95% of GWRE stock, is the second-largest Mutual Fund holder. It holds 2,468,690 shares valued at 175.25 million. Vanguard Small Cap Index Fund holds 2.52% of the stake in GWRE, owning 2,110,787 shares worth 149.84 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for GWRE since 13 analysts follow the stock currently. There are 7 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 4 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With GWRE analysts setting a high price target of $125.00 and a low target of $75.00, the average target price over the next 12 months is $99.10. Based on these targets, GWRE could surge 70.35% to reach the target high and rise by 2.21% to reach the target low. Reaching the average price target will result in a growth of 35.05% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. GWRE will report FY 2022 earnings on 09/07/2022. Analysts have provided yearly estimates in a range of -$0.45 being high and -$0.58 being low. For GWRE, this leads to a yearly average estimate of -$0.55. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Guidewire Software Inc. surprised analysts by $0.02 when it reported -$0.26 EPS against a consensus estimate of -$0.28. The surprise factor in the prior quarter was $0.06. Based on analyst estimates, the high estimate for the next quarter is $0.09 and the low estimate is -$0.07. The average estimate for the next quarter is thus -$0.01.

Summary of Insider Activity:

Insiders traded GWRE stock several times over the past three months with 8 Buys and 7 Sells. In these transactions, 6,806 shares were bought while 15,898 shares were sold. The number of buy transactions has increased to 81 while that of sell transactions has risen to 49 over the past year. The total number of shares bought during that period was 234,818 while 128,436 shares were sold.

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