Guidewire Software Inc (NYSE: GWRE)’s stock price has increased by 8.99 compared to its previous closing price of 183.49. However, the company has seen a 14.62% increase in its stock price over the last five trading sessions. benzinga.com reported 2025-01-23 that As of Jan. 23, 2025, three stocks in the information technology sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions.
Is It Worth Investing in Guidewire Software Inc (NYSE: GWRE) Right Now?
The price-to-earnings ratio for Guidewire Software Inc (NYSE: GWRE) is 565.73x, which is above its average ratio. Moreover, the 36-month beta value for GWRE is 1.24. Analysts have varying opinions on the stock, with 6 analysts rating it as a “buy,” 5 as “overweight,” 2 as “hold,” and 1 as “sell.”
The public float for GWRE is 82.83M and currently, short sellers hold a 2.06% of that float. On January 23, 2025, GWRE’s average trading volume was 929.22K shares.
GWRE’s Market Performance
GWRE’s stock has seen a 14.62% increase for the week, with a 16.23% rise in the past month and a 5.79% gain in the past quarter. The volatility ratio for the week is 1.97%, and the volatility levels for the past 30 days are at 1.99% for Guidewire Software Inc The simple moving average for the past 20 days is 14.39% for GWRE’s stock, with a 28.43% simple moving average for the past 200 days.
Analysts’ Opinion of GWRE
Raymond James, on the other hand, stated in their research note that they expect to see GWRE reach a price target of $125. The rating they have provided for GWRE stocks is “Outperform” according to the report published on February 01st, 2024.
GWRE Trading at 8.75% from the 50-Day Moving Average
After a stumble in the market that brought GWRE to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -4.38% of loss for the given period.
Volatility was left at 1.99%, however, over the last 30 days, the volatility rate increased by 1.97%, as shares surge +13.24% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +2.18% upper at present.
During the last 5 trading sessions, GWRE rose by +14.25%, which changed the moving average for the period of 200-days by +72.52% in comparison to the 20-day moving average, which settled at $174.80. In addition, Guidewire Software Inc saw 18.63% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at GWRE starting from Rosenbaum Michael George, who sale 1,400 shares at the price of $179.91 back on Jan 21 ’25. After this action, Rosenbaum Michael George now owns 278,930 shares of Guidewire Software Inc, valued at $251,874 using the latest closing price.
MIKE ROSENBAUM, the Officer of Guidewire Software Inc, proposed sale 1,400 shares at $179.91 during a trade that took place back on Jan 21 ’25, which means that MIKE ROSENBAUM is holding shares at $251,874 based on the most recent closing price.
Stock Fundamentals for GWRE
Current profitability levels for the company are sitting at:
- -0.02 for the present operating margin
- 0.61 for the gross margin
The net margin for Guidewire Software Inc stands at 0.03. The total capital return value is set at -0.01. Equity return is now at value 2.43, with 1.33 for asset returns.
Based on Guidewire Software Inc (GWRE), the company’s capital structure generated 0.44 points at debt to capital in total, while cash flow to debt ratio is standing at 0.21. The debt to equity ratio resting at 0.78. The interest coverage ratio of the stock is -3.34.
Currently, EBITDA for the company is 20.02 million with net debt to EBITDA at 2.75. When we switch over and look at the enterprise to sales, we see a ratio of 16.38. The receivables turnover for the company is 4.55for trailing twelve months and the total asset turnover is 0.4. The liquidity ratio also appears to be rather interesting for investors as it stands at 2.63.
Conclusion
To wrap up, the performance of Guidewire Software Inc (GWRE) has been better in recent times. The stock has received a bullish of “buy” and “hold” ratings from analysts. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
