Guidewire Software exec sells over $316k in company stock

Published 20/06/2024, 22:30
Guidewire Software exec sells over $316k in company stock

Guidewire (NYSE:GWRE) Software, Inc.'s (NYSE:GWRE) Chief Admin Officer, Gen Couns, King James Winston, recently sold a total of $316,000 worth of company stock, according to the latest SEC filings. The transactions were executed on two separate dates, with shares sold at prices ranging from $134.20 to $134.5375.

On June 18, 2024, Winston sold 1,036 shares at an average price of $134.5375, totaling approximately $139,380. The sale on June 20 involved 1,316 shares at $134.20 each, amounting to around $176,607. The disclosures indicated that one of the sales was conducted to cover taxes related to the settlement of Restricted Stock Units, while the other was an automatic sale under a prearranged 10b5-1 trading plan established in October of the previous year.

Following these transactions, Winston's holdings in Guidewire Software decreased, though he still retains a significant number of shares in the company. The sales come at a time when insider trading activity is closely watched by investors seeking insights into executive confidence and company performance.

Guidewire Software, headquartered in San Mateo, California, specializes in providing software solutions for the insurance industry. The company's shares are publicly traded on the New York Stock Exchange under the ticker symbol GWRE. As of now, there has been no official statement from Guidewire Software or King James Winston regarding the recent stock sales.

In other recent news, Guidewire Software Inc . has been the focus of several analyst firms following a strong fiscal third-quarter performance. Baird increased its price target for Guidewire shares to $152, citing the company's Annual Recurring Revenue (ARR) of $828 million, a 15% year-over-year increase that surpassed consensus estimates. The company's subscription gross margins also reached 65%, exceeding the consensus of 64%.

DA Davidson, Wells Fargo, and RBC Capital also raised their price targets for Guidewire, attributing the revisions to strong deal momentum and the maturation of the company's cloud infrastructure. Guidewire's robust financial performance was driven by a 33% year-over-year increase in InsuranceSuite cloud deals, exceeding prior guidance on all metrics.

Guidewire's outlook for the fiscal year 2024 has been revised upwards, with ARR expected to be between $856 million and $864 million. Operating cash flow projections were also raised significantly to $130 million to $150 million. These recent developments underscore Guidewire's robust operational execution and potential for sustained growth.

InvestingPro Insights

In light of the recent insider trading activity at Guidewire Software, Inc., current and prospective investors may find the following metrics and tips from InvestingPro valuable for a deeper understanding of the company's financial health and stock performance.

Guidewire Software has demonstrated notable price performance, with a 90.91% one-year total return, indicating strong investor confidence and a potentially bullish outlook for the company's stock. Additionally, the company's stock is trading close to its 52-week high at 98.16% of the peak value, reflecting a sustained positive trend in the market valuation.

InvestingPro Tips highlight that analysts have a positive outlook on Guidewire Software's future earnings, with 10 analysts revising their earnings upwards for the upcoming period. This suggests that the company's financial prospects are improving, which may be a contributing factor to the recent insider transactions. Moreover, Guidewire is poised for growth, as analysts predict the company will be profitable this year, a significant turnaround considering it was not profitable over the last twelve months.

However, the company operates with a moderate level of debt, which could impact its financial flexibility. The P/E ratio stands at a negative -1040, reflecting challenges in profitability, but this is expected to change as net income is anticipated to grow.

For those interested in a comprehensive analysis, InvestingPro offers additional insights on Guidewire Software, which can be accessed at https://www.investing.com/pro/GWRE. There are more InvestingPro Tips available to help investors make informed decisions, and by using the coupon code PRONEWS24, users can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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