GWRE stock: buy or sell?

GWRE stock price: $109.37 1.27% At close on September 20th, 2019

Updated on:
September 20th, 2019

4

Guidewire Software shares raised 1.27% to $109.37 today.

Guidewire Software, Inc. provides software products for property and casualty insurers. It offers Guidewire InsuranceNow, a cloud-based platform that offers policy, billing, and claims management functionality to insurers.

Should I buy GWRE stock?

You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. Trading strategies are meant for helping you in the decision process of what stocks to choose and when is the best time to buy them. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

None of our preferred buy setups matches with Guidewire Software stock situation right now, hence this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean GWRE will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is Guidewire Software stock a buy?

Banks and financial institutions post stock ratings everyday. At Stocks2.com, we collected 5 ratings published for GWRE stock in the last 30 days.

Is GWRE a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-9-6JPMorgan Chase & Co.n/aOverweight
2019-5-16Piper Jaffray Companiesn/aNeutral
2019-3-4Piper Jaffray CompaniesOverweightNeutral
2019-2-1Goldman Sachs Groupn/aBuy
2019-2-1Goldman Sachs Groupn/aConviction-Buy

GWRE stock analysis

Daily outlook

Guidewire Software shares raised 1.27% to $109.37 today.

Guidewire Software ended today at $109.37 and raised a nice 1.27%. On Sep 6th, GWRE hit new all time highs, pushing higher previous ATH of $109.06 recorded on May. New ATHs are usual entry points for many trading setups as there aren't higher resistences. On September 5th GWRE price bounced up over the SMA of 200 days demonstrating to be a significant support for this stock. Since last May when SMA100d and SMA200d crossed up, GWRE price gained $7.72 per share (7.59%).

GWRE stock chart (daily)

Weekly outlook

Guidewire Software shares jumped 3.28% this week, ending at $109.37. Early September GWRE skyrocketed a super good 12.09% in just one week.

Guidewire Software stock is trading in the range of its last top and last bottom. Loosing would mean breaking the current uptrend. Breakdowns under last bottom are selling point signals for some trading strategies. Not so far away is the last price record Guidewire Software marked early September. Since price and SMA40w lines crossed up late August, GWRE climbed $15.72 (16.79%). Early May, SMA20w and SMA40w crossed up triggering a rise of 4.66%.

GWRE stock chart (weekly)

GWRE stock price history

GWRE stock went public on January 25th, 2012 with a price of $16.751. Since then, GWRE stock grew a 553.00%, with a yearly average of 79.00%. If you had invested right after GWRE's IPO a $1,000 in GWRE stock in 2012, it would worth $5,530.00 today.

1: Adjusted price after possible price splits or reverse-splits.

GWRE stock historical price chart

GWRE stock reached all-time highs on Sep/6 with a price of $113.34.

GWRE stock price target is $107.30

How much a stock will be priced tomorrow or next week is quite unpredictable However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. We detected 3 price forecasts for GWRE stock released in the last 30 days:
GWRE stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-9-6JPMorgan Chase & Co.Raises Target$116.00$132.0013.8%
2019-5-16Piper Jaffray CompaniesRaises Target$90.00$100.0011.1%
2019-3-4Piper Jaffray CompaniesDowngrades$95.00$90.00-5.3%
(in average)$100.30$107.307.0%
The price prediction for Guidewire Software stock is $107.30, moving in a range between $132.00 and $90.00. In average, analysts' outlook on GWRE price target is positive, upgrading the forecast by a 7.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Since last March, when Guidewire Software published its last earnings report, it . Unfortunately, reported EPS is not yet available in our database.
GWRE earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a-0.02n/a
2017-Q3-n/a0.34n/a
2017-Q42018-03-060.190.3373.7%
2018-Q12018-03-06-0.01n/an/a
2018-Q22018-06-05-0.23-0.26n/a
2018-Q32018-09-050.540.6113.0%
2018-Q42018-12-04-0.030.15n/a
2019-Q12019-03-06-0.060.11n/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

Compared to 2018, last anual revenues report draw a tight movement of 0.00% to $661.07 million dollars. Likewise, its income margin (compared to sales) stayed constant to -2.97%, that is $-19.67 million.

Guidewire Software fiscal year ends in July, and to compare its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, Guidewire Software TTM sales up to January 2019 were $738.06 and earnings $41.05 M dollars. When comparing this TTM figures with the last reported annuality, we can review Guidewire Software business evolution since July 2018: Annual sales up to January, compared to lastest yearly report, climbed a wonderful 11.65%. Regarding profit margin, Guidewire Software escalated 8.54% to -2.97%

GWRE annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2014$350 M-$15 M4.2%-
2014$350 M0.00%$15 M4.2%0.00%
2015$381 M8.65%$9.89 M2.6%-32.81%
2015$381 M0.00%$9.89 M2.6%-0.05%
2016$424 M11.54%$15 M3.5%51.54%
2016$424 M0.00%$15 M3.5%-0.03%
2017$514 M21.17%$21 M4.1%41.69%
2017$514 M0.00%$21 M4.1%0.02%
2018$661 M28.54%$-19.67 M-3.0%-192.68%
2018$661 M0.00%$-19.67 M-3.0%-0.03%
TTM $738 M11.65%$41 M5.6%-308.74%

Quarterly financial results

Guidewire Software posted $169.27 million in sales for 2019-Q1, a -5.80% decline compared to previous quarter. Reported quarter income marked $0.76 million with a profit margin of 0.45%. Profit margin declined a -2.61% compared to previous quarter when profit margin was 3.05%. When comparing sales to same quarter last year, Guidewire Software sales marked a decent growth and grew a 3.34%. Looking back to recent quarterly results, Guidewire Software posted 2 negative quarters in a row.
GWRE quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$123 M-$-2 M-1.5%-
2017-Q3$181 M46.71%$27 M14.9%-1,579.67%
2017-Q4$108 M-40.27%$-9 M-8.2%-133.10%
2018-Q1$164 M51.42%$-46 M-27.8%411.05%
2018-Q2$140 M-14.24%$-49 M-34.6%6.73%
2018-Q3$249 M77.01%$83 M33.6%-271.58%
2018-Q4$180 M-27.73%$5 M3.1%-93.42%
2019-Q1$169 M-5.80%$1 M0.4%-86.23%

Guidewire Software ownership

When you are planning to invest in shares of a stock, it's always worth to review its ownership structure.

Guidewire Software shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 0.12% of all shares.

Bearish positions for GWRE stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to Guidewire Software:

GWREBNFTDXCEBIXIBM
Market cap$8.9 B$806.1 M$8.4 B$1.3 B$126.7 B
Total shares81.8 M32.7 M262.0 M30.5 M885.9 M
Float shares81.8 M26.7 M260.7 M22.1 M884.5 M
  - Institutional holdings (%)108.3%75.0%88.3%89.3%57.5%
  - Insider holdings (%)0.1%26.5%0.4%17.8%0.1%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

GWRE summary

Friday, September 20th, 2019
Open$108.42
Close$109.37
Day range$108.54 - $110.21
Previous close$108.00
Session gain1.27%
Average true range$4.24
50d mov avg$100.05
100d mov avg$100.87
200d mov avg$95.84
Daily patternlb11a
Weekly pattern lt06a

Guidewire Software performance

Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. For Guidewire Software, the comparison is made against Benefitfocus, DXC Technology, Ebix, International Business Machines, and Pegasystems.
Stock3m6m12m
GWREGuidewire Softwar...8.56%16.86%10.81%
BNFTBenefitfocus-8.16%-45.44%-38.99%
DXCDXC Technology-40.44%-49.23%-66.00%
EBIXEbix-9.44%-9.78%-46.07%
IBMInternational Bus...3.92%4.96%-0.91%
MJCO-2.06%21.56%22.25%
PEGAPegasystems-1.98%12.85%14.03%

Guidewire Software competitors

One check before investing in any stock is to have a look a list of its competitors, in this case for Guidewire Software. We selected 6 companies as Guidewire Software competitors as they are in the same industry or have similar market objectives.