GWRE stock: buy or sell?

GWRE stock price: $111.39 0.47% At close on February 26th, 2020

Updated on:
February 26th, 2020

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After marking all time highs on February 19th, Guidewire Software stepped up 0.47% today to $111.39. Last session broke a streak of 4 red sessions in a row.

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?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. That's why is so important to choose your own trading strategy that matches with your character as inversor. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

Currently, Guidewire Software stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is Guidewire Software stock a buy?

Banks and financial institutions publish stock ratings everyday. Unfortunately, we couldn't detect any rating for GWRE stock for the last 30 days.

GWRE stock analysis

Daily outlook

Guidewire Software stepped up 0.47% to $111.39 after marking all time highs on Feb 19th.

After sliding for 4 sessions, Wednesday Guidewire Software stepped up a tiny 0.47%, closing at $111.39. On Feb/19, GWRE hit a new all time high, pushing higher than on November tops. Check different trading setups that use ATHs as triggers.

GWRE stock chart (daily)

Weekly outlook

Guidewire Software closed this week at $111.39 and plummed a scary -6.79%.

Guidewire Software stock is drawing an uptrend with rising tops and bottoms. Now trading in between its last bottom and last top, GWRE might consolidate in a flat-base, waiting to break out over or down under . Not so far away is the last all-time high Guidewire Software marked last week. Since mid December 2019 when GWRE stock price broke up the SMA40w line, it gained $6.66 (6.36%). Since early May 2019 when SMA20w and SMA40w crossed up, GWRE price gained $6.89 per share (6.59%).

GWRE stock chart (weekly)

GWRE stock price history

GWRE IPO was on January 25th, 2012 at $16.75 per share1. Since then, GWRE stock surged a 565.00%, with a yearly average of 70.60%. If you had invested $1,000 in GWRE stock in 2012, it would worth $5,650.00 today.

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

GWRE stock historical price chart

GWRE stock reached all-time highs on Feb/19 with a price of $124.16.

GWRE stock price target

Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. 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. For the last month we have not found any price prediction for Guidewire Software stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

Since last March, when Guidewire Software presented its last earnings report, it . As soon as we get its posted EPS from the earnings report, we will extend this review.
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 turnover report draw a tight movement of 0.00% to $661.07 M dollars. When comparing 2018 vs 2018, similarly, profit margin (that is, the net income divided by revenues) remained constant a 0.00% to -2.97%.

To have an up to date view of the financial situation of Guidewire Software, we have calculated the trailing twelve month (TTM) sales and income figures. TTM values are the sum of the last 4 quarters and aproximate to an annual fiscal report ending in 2019-Q1 that can be compared to 2018 fiscal year results. Annual Guidewire Software TTM sales up to January 2019 were $738.06 and earnings were $41.05 M USD. When comparing this TTM figures with the last reported annuality, we can esteem Guidewire Software business evolution since July 2018: Annual sales up to January, compared to lastest yearly report, boosted a phenomenal 11.65%. Likewise, profit margin (net income/sales) jumped at -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 revenues for 2019-Q1, a -5.80% decline compared to previous quarter. Reported quarter earnings marked $0.76 million with a profit margin of 0.45%. Profit margin decreased a -2.61% compared to previous quarter when profit margin was 3.05%. When comparing revenues to same quarter last year, Guidewire Software sales marked a good increase and raised 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 a stock, it's always worth to overview 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.

For a better context understanding, the next table shows ownership data compared to other related stocks:

GWRE
Market cap$9.2 B
Total shares82.6 M
Float shares82.5 M
  - Institutional holdings (%)111.0%
  - Insider holdings (%)0.1%
Shares in short selling0.0%

GWRE summary

Wednesday, February 26th, 2020
Open$111.46
Close$111.39
Day range$110.80 - $112.92
Previous close$110.87
Session gain0.47%
Average true range$2.65
50d mov avg$113.01
100d mov avg$113.14
200d mov avg$107.07
Daily pattern
Weekly pattern lt06a

Guidewire Software performance

To better understand Guidewire Software performance you must compare its gains with other related stocks in same sector or industry. For Guidewire Software, the benchmark is made against .
Stock3m6m12m
GWREGuidewire Softwar...-8.57%15.81%18.98%

Guidewire Software competitors

Unfortunately, we could not find any public company that could be defined as Guidewire Software competitor. This doesn't mean Guidewire Software does not have any competitor in the market, it's just we could not detected it.