Gold prices bounce off 3-week lows; demand likely longer term
Investing.com - BMO Capital lowered its price target on Goosehead Insurance Inc . (NASDAQ:GSHD) to $110.00 from $142.00 on Friday, while maintaining a Market Perform rating on the stock. The insurance company, currently trading at $87.62, has seen its shares decline 14.2% in the past week, with a market capitalization of $2.2 billion.
The price target reduction follows Goosehead’s second-quarter results, which showed misses on both growth and margin key performance indicators (KPIs), according to BMO Capital. Despite the challenges, the company maintains a healthy gross profit margin of 45.1% and has demonstrated strong revenue growth of 23.7% over the last twelve months. According to InvestingPro, seven analysts have recently revised their earnings expectations downward for the upcoming period.
Despite the disappointing quarterly performance, BMO noted that Goosehead appears to have reached the low point in carrier commission rates and customer retention, as home insurance marketplace profit levels have improved outside of California.
The firm maintained its Market Perform rating, citing that while Goosehead’s 2025 revenue guidance remains intact, the lower 2025 premium guidance appears achievable.
BMO Capital indicated that the quarterly results established a lower starting point for several KPIs including pricing, retention, and productivity, which translates to a worse growth outlook for 2026.
In other recent news, Goosehead Insurance reported its second-quarter 2025 earnings, revealing a mixed performance. The company posted earnings per share of $0.49, which was slightly below the consensus forecast of $0.50. However, total revenues reached $94.8 million, surpassing both the estimates by JMP Securities and the consensus forecast. JMP Securities reiterated its Market Outperform rating on Goosehead Insurance, maintaining a price target of $150.00, reflecting optimism about the company’s financial performance. On the other hand, Piper Sandler downgraded the stock from Overweight to Neutral, citing a slower growth outlook and adjusting the price target to $109.00 from $122.00. The firm expressed concerns about Goosehead’s growth trajectory, noting that revenue growth did not meet expectations. Additionally, Goosehead Insurance has formed a strategic partnership with Baird & Warner Real Estate, launching Adaptive Insurance Agency to offer integrated insurance services during real estate transactions. This partnership aims to provide Baird & Warner clients with access to Goosehead’s portfolio of insurance carriers and guidance on coverage options.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.