Guidewire Execs Sell $23.7M as Analysts See 42% Upside
Five Guidewire Software executives sold $23.68 million in stock at $144.47 between September 8 and 21, with CEO Michael Rosenbaum accounting for $10.44 million of the sales. The liquidation stands in
Guidewire Execs Sell $23.7M as Analysts See 42% Upside
NEW YORK, September 23 —
Five Guidewire Software, Inc. (GWRE) executives sold $23.68 million in shares between September 8 and 21, executing the largest block at $144.47 two weeks after a 19.5% post-earnings drop. Not one made an open-market purchase over the 90-day window, even as Wall Street's consensus target sits at $213.29, roughly 42% above current prices.
- Five executives, led by CEO Rosenbaum ($10.44M), sold a combined $23.68M between September 8 and 21; zero open-market buys recorded.
- GWRE fell 19.5% after its most recent quarterly beat; shares now trade at $150.46, versus $160.52 on September 8.
- Wall Street consensus target: $213.29, implying 42% upside; TTM revenue $1.48B growing 15.3% year-over-year.
Five Executives, One Price
Guidewire Software sells core systems to property and casualty insurers, including PolicyCenter (policy administration), ClaimCenter (claims management), and BillingCenter, bundled under the InsuranceSuite brand. The September selling followed a sequential structure: equity grants on September 11, option exercises on September 15, then open-market disposals on September 17, two weeks after the September 3 earnings 8-K. That grant-exercise-sell cycle is standard compensation mechanics. The less standard element is the simultaneity: five executives, including CEO Michael Rosenbaum at $10.44 million and President John Mullen at $5.73 million, all clearing positions at $144.47 on a single date, with Rosenbaum adding smaller tranches on September 8, 14, and 21.
Beats on the Scoreboard, Loss on the Day
Guidewire beat consensus EPS estimates in each of the last four quarters, with surprises ranging from +5.3% to +52.1%. The most recent quarter beat sales expectations and still produced the post-earnings decline, implying the market repriced something beyond trailing metrics, whether growth expectations or the officer departure disclosed in the September 3 8-K, the second such filing in roughly six weeks. Revenue grows at 15.3% year-over-year on a $1.48 billion trailing base, free cash flow runs $343 million, and the balance sheet holds net cash. None of that reads as a company under immediate strain.
| Ticker | Mkt cap | Fwd P/E | 52-wk |
|---|---|---|---|
| GWRE | $12.3B | 28.1x | -38.3% |
| TYL | $13.6B | 21.6x | -37.1% |
| QTWO | $3.5B | 16.9x | -24.5% |
| SSNC | $18.6B | 10.3x | -8.6% |
| PCTY | $8.1B | 15.0x | -12.8% |
| MANH | $12.1B | 33.7x | -2.0% |
The $70 Question
The sellside's $213.29 consensus implies that upside from $150.46; the stock trades at 28.1 times forward earnings on 64.2% gross margins, a valuation the DCF calculator can stress-test against slower growth assumptions. The executives who built those numbers liquidated closer to $144 than to the sellside target. The checkpoint is whether the next quarterly report shows the revenue growth rate holding above 15.3%, or whether the post-earnings repricing reflects a forecast cut the sellside has not yet absorbed. Run the free Guidewire Software, Inc. deep-dive for current fundamentals.
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Frequently Asked Questions
Why are Guidewire execs selling stock?
Five Guidewire executives, including CEO Michael Rosenbaum and President John Mullen, sold $23.68 million in shares between September 8 and 21. The sales followed standard compensation mechanics: equity grants on September 11, option exercises on September 15, and open-market disposals on September 17, with no open-market purchases recorded during the 90-day window.
What is Guidewire's analyst price target?
Wall Street's consensus price target for Guidewire is $213.29, implying roughly 42 percent upside from the current price of $150.46. The executives liquidated most of their positions at $144.47, creating a notable gap between insider selling prices and sellside targets.
Has Guidewire beaten earnings recently?
Guidewire has beaten consensus earnings per share estimates in each of the last four consecutive quarters, with surprises ranging from 5.3 percent to 52.1 percent. The company's most recent quarter also beat sales expectations, yet the stock fell 19.5 percent in the post-earnings repricing.
What does Guidewire Software sell?
Guidewire sells core systems to property and casualty insurers, including PolicyCenter for policy administration, ClaimCenter for claims management, and BillingCenter, bundled under the InsuranceSuite brand. The company has trailing-twelve-month revenue of $1.48 billion growing 15.3 percent year-over-year.
Is Guidewire financially healthy?
Guidewire maintains a strong financial position with $343 million in free cash flow, gross margins of 64.2 percent, and a net cash balance sheet. None of these metrics suggest the company faces immediate financial strain.
Five Guidewire Software executives filed Form 4s showing $23.68 million in open-market sales at approximately $140–$145 per share between September 17 and 21 — weeks after the stock fell 19.5% on earnings. Wall Street analysts simultaneously maintain a consensus price target of $213.29, implying the insiders are liquidating at roughly a 30% discount to where the sellside thinks the stock belongs.