Goosehead Insurance (NASDAQ:GSHD) saw its price target adjusted by Cantor Fitzgerald from $125.00 to $111.00 in a report released on Wednesday. Despite this reduction, Cantor Fitzgerald maintains an “overweight” rating on the stock, indicating a positive outlook for the company.
This adjustment comes amid a flurry of analyst activity surrounding Goosehead Insurance. On December 1, Jefferies Financial Group initiated coverage on the company, setting a “buy” rating with a price target of $93.00. Meanwhile, BMO Capital Markets lowered its price target from $110.00 to $79.00, rating the stock as “market perform.”
In a similar vein, Truist Financial reduced its target price on Goosehead from $85.00 to $72.00, assigning a “hold” rating, while Piper Sandler decreased its target from $79.00 to $69.00, also labeling the stock as “neutral.” Additionally, Zacks Research changed its stance from a “strong sell” to a “hold” rating on November 10.
As of now, Goosehead Insurance has received a mix of ratings from analysts, with six recommending a “buy,” six suggesting a “hold,” and one indicating a “sell.” According to data from MarketBeat.com, the average rating for the company stands at “hold” with a consensus price target of $90.30.
Financial Performance Overview
Goosehead Insurance released its quarterly earnings data on October 23, reporting earnings per share (EPS) of $0.46, which fell short of the consensus estimate of $0.54 by $0.08. The company generated revenue of $90.44 million for the quarter, missing analyst expectations of $94.25 million. The firm recorded a negative return on equity of 34.60% alongside a net margin of 8.55%. Nonetheless, revenue showed a year-over-year increase of 15.9%, compared to the same quarter last year when the company reported an EPS of $0.50. Analysts predict that Goosehead will post an EPS of $0.83 for the current fiscal year.
Insider Transactions and Institutional Activity
In recent insider activity, Thomas Mcconnon, a director at Goosehead, sold 69,686 shares on December 1 at an average price of $73.62, totaling approximately $5.13 million. Following this sale, Mcconnon holds 269,322 shares valued at around $19.83 million, representing a decrease of 20.56% in his position. This transaction was filed with the Securities and Exchange Commission (SEC).
Conversely, Mark E. Jr. Jones, the Chief Financial Officer, acquired 873 shares on October 27 for an average price of $74.44, amounting to a total of $64,986.12. Following this purchase, Jones owns 4,364 shares, valued at approximately $324,856.16, marking a 25.01% increase in his holdings.
Over the past ninety days, insiders have purchased a total of 7,973 shares of Goosehead stock, valued at $577,487. Currently, corporate insiders hold approximately 48.35% of the company’s stock.
Institutional investors are also making moves concerning Goosehead Insurance. For instance, Caxton Associates LLP initiated a new position in the second quarter, investing about $2.14 million. Other firms, including Index Fund Advisors Inc. and GAMMA Investing LLC, have also increased their stakes in the company during this period. Notably, 3G Capital Partners LP has significantly boosted its position by 105.6%, now holding 462,500 shares valued at around $48.8 million.
Founded in 2003 and headquartered in Westlake, Texas, Goosehead Insurance is a technology-driven agency that offers a variety of personal and commercial insurance products through a network of independent insurance advisors. The company is focused on providing tailored policies for homeowners, auto, flood, and commercial lines coverage, collaborating with various national and regional carriers to enhance consumer choices.
