Stock of the Day

September 29, 2020

Guidewire Software (GWRE)

$168.89
-$6.88 (-3.9%)
Market Cap: $14.63B

About Guidewire Software

Guidewire Software, Inc. provides a platform for property and casualty (P&C) insurers worldwide. The company offers Guidewire InsuranceSuite Cloud, such as PolicyCenter Cloud, BillingCenter Cloud, and ClaimCenter Cloud applications. It also provides Guidewire InsuranceNow, a cloud-based platform that offers policy, billing, and claims management functionality to insurers; and Guidewire InsuranceSuite for Self-Managed. In addition, the company offers Guidewire Rating Management to manage the pricing of insurance products; and Guidewire Reinsurance Management to use rules-based logic to execute reinsurance strategy through underwriting and claims processes. Further, it provides Guidewire Underwriting Management, a cloud-based integrated business application; Guidewire AppReader, a submission intake management solution; Guidewire ClaimCenter Package for the London market supports the claims workflow used by London Market insurers and brokers; Guidewire Digital Engagement Applications, which enable insurers to provide digital experiences to customers, agents, vendors, and field personnel through their device of choice; and Guidewire for Salesforce to provide customer information regarding policies and claims. Additionally, the company offers Guidewire Predict, a P&C-specific machine-learning platform; Guidewire HazardHub that allows insurers to understand, assess, price, and manage property risk; Guidewire Canvas, Guidewire Compare, and Guidewire Explore cloud-native applications; and Guidewire Cyence, a cyber-risk economic modeling product. The company was incorporated in 2001 and is headquartered in San Mateo, California.

Today's Trend

Guidewire Software, Inc. (NYSE: GWRE) shares have increased modestly as investors weigh stronger long-term earnings potential, expanding cloud adoption and shareholder returns against near-term estimate reductions and valuation concerns.

  • Guidewire expanded a multi-year partnership with a top-tier insurer on its Cloud platform, supporting continued growth in recurring cloud revenue and enterprise adoption. Guidewire expands top-tier insurer partnership on Cloud platform
  • West Bend is laying the groundwork for AI-driven claims processing on Guidewire’s platform, reinforcing the company’s positioning in insurance automation and artificial intelligence. West Bend Lays the Foundation for AI-Driven Claims on Guidewire
  • A Zacks analysis highlighted 30% fiscal-2026 operating-cash-flow growth and $606 million of share repurchases, suggesting improving profitability, operating leverage and ongoing capital returns. Guidewire's Cash Flow and Buybacks: Can Both Keep Scaling?
  • Zacks Research raised its FY2028 EPS forecast to $3.18 from $2.64 and projects FY2029 EPS of $4.36, pointing to expectations for substantial longer-term earnings growth.
  • CEO Michael Rosenbaum sold 1,200 shares for approximately $171,000, reducing his direct holdings by just 0.43%. Because the sale occurred under a pre-arranged Rule 10b5-1 plan, it provides limited evidence of a change in management’s outlook. SEC insider trading filing
  • Analyst commentary warned that elevated expectations and Guidewire’s high valuation could weigh on the stock if growth or cloud-execution results disappoint. Elevated Expectations Weigh on Guidewire
  • Zacks reduced its FY2027 EPS estimate to $1.98 from $2.06 and lowered forecasts for the first two quarters of FY2027, including Q1 EPS to $0.26 from $0.37 and Q2 EPS to $0.44 from $0.55. These cuts may temper the positive impact of higher out-year estimates.
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