Guidewire Software Inc. (NYSE:GWRE) previous close was $119.62 while the outstanding shares total 83.18M. The firm has a beta of 1.28. GWRE’s shares traded lower over the last trading session, losing -1.25% on 07/30/20. The shares fell to a low of $116.11 before closing at $118.13. Intraday shares traded counted 0.5 million, which was 10.57% higher than its 30-day average trading volume of 561.36K. The stock’s Relative Strength Index (RSI) is 56.26, with weekly volatility at 2.20% and ATR at 2.90. The GWRE stock’s 52-week price range has touched low of $71.64 and a $124.16 high.
Investors have identified the Software – Application company Guidewire Software Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $10.00 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Guidewire Software Inc. (GWRE) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. In terms of their assets, the company currently has 1224299000 million total, with 176717000 million as their total liabilities.
GWRE were able to record -16.33 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by 39.71 million. In cash movements, the company had a total of 5.91 million as operating cash flow.
Potential earnings growth for Guidewire Software Inc. (GWRE)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Guidewire Software Inc. recorded a total of 168.16 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 3.15% coming in sequential stages and their sales for the third quarter reducing by -3.15%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 85.75 million trying to sell their products during the last quarter, with the result yielding a gross income of 82.41 million. This allows shareholders to hold on to 83.18M with the revenue now reading -0.37 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (-0.28 cents a share).
Having a look at the company’s valuation, the company is expected to record 0.63 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on GWRE sounds very interesting.
Is the stock of GWRE attractive?
In related news, Director, Ryu Marcus sold 12,500 shares of the company’s stock in a transaction that recorded on Jul 20. The sale was performed at an average price of 119.46, for a total value of 1,493,266. As the sale deal closes, the Chief Sales Officer, Sherry Steven P. now sold 3,041 shares of the company’s stock, valued at 324,948. Also, Chief Delivery Officer, Polelle Michael sold 1,301 shares of the company’s stock in a deal that was recorded on Jun 18. The shares were price at an average price of 106.82 per share, with a total market value of 138,973. Following this completion of acquisition, the Chief Admin Officer, Gen Couns, King James Winston now holds 3,951 shares of the company’s stock, valued at 421,931. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.11%.
6 out of 14 analysts covering the stock have rated it a Buy, while 7 have maintained a Hold recommendation on Guidewire Software Inc.. 1 analysts has assigned a Sell rating on the GWRE stock. The 12-month mean consensus price target for the company’s shares has been set at $120.30.