Exploring Guidewire Software, Inc. (GWRE) Investor Profile: Who’s Buying and Why?

Have you ever wondered who the major players are behind Guidewire Software, Inc. (GWRE) and what drives their investment decisions? As of December 31, 2024, a significant portion of GWRE's shares are held by institutional investors, with the top holders including Vanguard Group Inc holding 8.46 million shares representing 10.12% of the outstanding shares, BlackRock, Inc. with 6.48 million shares representing 7.76%, and BAMCO Inc. holding 5.92 million shares representing 7.08%. These institutions and others collectively hold over 105 million shares. Recent activity shows that some firms like INVESCO LTD. have reduced their positions, while others such as Massachusetts Financial Services Co /MA/ have increased their stakes significantly, adding over 1 million shares in Q4 2024 alone. With analysts setting price targets as high as $250 and the company showing a 73% stock return over the past year, understanding these investment dynamics is crucial. Let’s delve into the details of Guidewire's investor profile and explore the factors influencing these key stakeholders.

Guidewire Software, Inc. (GWRE) Who Invests in Guidewire Software, Inc. (GWRE) and Why?

Understanding the investor profile of Guidewire Software, Inc. (GWRE) involves examining the diverse range of investors and their motivations. These investors are typically drawn to the company's growth prospects, its established market position, and the overall dynamics of the software industry.

Key investor types can be broadly categorized as follows:

• Institutional Investors: These include mutual funds, pension funds, insurance companies, and investment firms. They often hold significant portions of a company's stock.
• Retail Investors: Individual investors who buy and sell securities for their own accounts.
• Hedge Funds: These are investment partnerships that use pooled funds and employ various strategies to earn active return, or alpha, for their investors.
• Corporate Insiders: Company executives and board members who own shares. Their transactions are closely watched as they may have unique insights into the company's prospects.

Investment motivations for investing in Guidewire Software, Inc. (GWRE) include:

• Growth Prospects: Investors are attracted to Guidewire Software, Inc. (GWRE)'s potential for growth, driven by the increasing demand for its cloud-based platform.
• Market Position: Guidewire Software, Inc. (GWRE)'s established position in the property and casualty (P&C) insurance software market makes it an attractive investment.

Typical investment strategies observed among investors include:

• Long-Term Holding: Many institutional investors adopt a long-term holding strategy, based on the expectation of sustained growth and value appreciation over time.
• Short-Term Trading: Hedge funds and some retail investors may engage in short-term trading strategies to capitalize on price fluctuations.
• Value Investing: Some investors may view Guidewire Software, Inc. (GWRE) as undervalued at certain times and adopt a value investing approach, anticipating that the market will eventually recognize its intrinsic worth.

To illustrate the composition of Guidewire Software, Inc. (GWRE)'s investors, consider the following hypothetical data based on typical ownership structures:

Institutional investors form the majority, holding around 85% of Guidewire Software, Inc. (GWRE)'s shares. This significant stake indicates strong confidence from major financial institutions. Retail investors account for approximately 10%, while hedge funds and corporate insiders hold smaller percentages.

Understanding who invests in Guidewire Software, Inc. (GWRE) and why provides valuable insights into market sentiment and the factors driving investor decisions. The blend of institutional, retail, and insider ownership reflects a mix of long-term confidence and shorter-term trading perspectives.

Explore more about the company's mission, vision, and core values: Mission Statement, Vision, & Core Values of Guidewire Software, Inc. (GWRE).

Guidewire Software, Inc. (GWRE) Institutional Ownership and Major Shareholders of Guidewire Software, Inc. (GWRE)

Institutional investors and major shareholders play a significant role in the financial performance and strategic direction of Guidewire Software, Inc. (GWRE). As of recent filings, Guidewire Software, Inc. has a substantial institutional ownership, with these entities holding a significant percentage of the company's shares.

As of April 2025, 1154 institutional owners and shareholders have filed 13D/G or 13F forms with the Securities Exchange Commission (SEC), holding a total of 105,475,405 shares. Institutional investors hold approximately 100.83% of the company's shares, while insiders own about 0.46%.

Here's a list of the top institutional holders of Guidewire Software, Inc. (GWRE) as of December 31, 2024:

• Vanguard Group Inc: 8.46 million shares (10.08% of shares outstanding), valued at $1,617,797,335
• BlackRock Inc.: 6.48 million shares (7.73% of shares outstanding), valued at $1,239,920,390
• BAMCO Inc.: 5.92 million shares (7.05% of shares outstanding), valued at $1,131,751,974
• Massachusetts Financial Services Co.: 4.44 million shares (5.29% of shares outstanding), valued at $848,906,919
• Stockbridge Partners LLC: 2.68 million shares (3.19% of shares outstanding), valued at $512,545,714
• Linonia Partnership LP: 2.4 million shares (2.86% of shares outstanding), valued at $458,350,343
• Darsana Capital Partners, LP: 2.3 million shares (2.74% of shares outstanding), valued at $440,059,004
• Route One Investment Company, L.P.: 2.25 million shares (2.68% of shares outstanding), valued at $430,766,106
• Wellington Management Group, LLP: 1.65 million shares (1.96% of shares outstanding), valued at $315,268,985
• JPMorgan Chase & Co: 1.49 million shares (1.78% of shares outstanding), valued at $285,166,079

Additionally, iShares Trust-iShares Core S&P Mid-Cap ETF is a top mutual fund holder with 2.73 million shares as of March 31, 2025, representing 3.25% and valued at $521,941,548.

Recent trading activity shows a mix of increased and decreased positions by institutional investors. For example, during Q4 2024:

• INVESCO LTD. decreased its position by 1,204,757 shares (-59.0%), valued at approximately $203,097,935.
• MASSACHUSETTS FINANCIAL SERVICES CO /MA/ increased its position by 1,009,966 shares (+29.5%), valued at approximately $170,260,068.
• WHALE ROCK CAPITAL MANAGEMENT LLC reduced their holdings by 972,743 shares (-100.0%), an estimated value of $163,985,014.
• ROUTE ONE INVESTMENT COMPANY, L.P. decreased its holdings by 614,150 shares (-21.4%), with an estimated value of $103,533,407.
• BLACKROCK, INC. increased its position by 600,001 shares (+10.2%), valued at approximately $101,148,168.
• PARNASSUS INVESTMENTS, LLC decreased its position by 597,814 shares (-54.5%), valued at approximately $100,779,484.
• JPMORGAN CHASE & CO decreased their holdings by 577,314 shares (-27.9%), with an estimated value of $97,323,594.

Overall, there were 299 institutional investors who increased their positions and 254 who decreased their positions in the most recent quarter.

These changes reflect active portfolio management and varying perspectives on Guidewire Software, Inc.'s (GWRE) future prospects. Tracking these movements can provide insights into the sentiment and expectations of major players in the market.

Insider trading activity also provides insight into the company's prospects. Over the past six months, there have been 0 purchases and 35 sales by insiders. For instance, Michael George Rosenbaum (CEO) sold 40,511 shares for an estimated $7,278,089, and John P Mullen (President) sold 25,283 shares for approximately $4,543,891.

Institutional investors can significantly influence a company's stock price through large volume trading and strategic decisions. Their actions can signal confidence or concern about a company's prospects, impacting market sentiment and stock valuation. Monitoring institutional ownership and trading activity is crucial for understanding market dynamics and potential investment opportunities in Guidewire Software, Inc. (GWRE).

The share price of Guidewire Software Inc. was $192.17 on April 14, 2025, compared to $109.29 on April 15, 2024, representing a 75.83% increase over the year.

See more about Guidewire Software, Inc. (GWRE): History, Ownership, Mission, How It Works & Makes Money Guidewire Software, Inc. (GWRE): History, Ownership, Mission, How It Works & Makes Money

Guidewire Software, Inc. (GWRE) Key Investors and Their Impact on Guidewire Software, Inc. (GWRE)

Understanding the investor profile of Guidewire Software, Inc. (GWRE) provides critical insights into the company's stability, growth potential, and strategic direction. Key investors can significantly influence company decisions and stock performance through their holdings and actions.

Institutional investors are major players in Guidewire Software, Inc. (GWRE). As of Q4 2023, 88.70% of the company's stock is held by institutional investors. These entities conduct extensive research before investing, indicating a strong level of confidence in the company's prospects. The top institutional holders include:

• Vanguard Group: A leading investment management company known for its index funds and ETFs.
• BlackRock Inc.: The world's largest asset manager, with a diverse portfolio of investments.
• Capital World Investors: A global investment management firm with a long-term investment approach.
• State Street Corporation: A major financial services provider and asset manager.
• T. Rowe Price Associates Inc.: A well-regarded investment management firm focused on delivering long-term investment results.

These institutional investors collectively hold a substantial portion of Guidewire Software, Inc. (GWRE)'s shares, reflecting their belief in the company's long-term value. Their actions, such as increasing or decreasing their positions, can significantly impact the stock price and market sentiment.

While specific recent moves by these major investors are not detailed, monitoring their quarterly filings (13F filings with the SEC) provides insights into their changing positions. Significant increases in holdings can signal confidence in Guidewire Software, Inc. (GWRE)'s future, while decreases may indicate concerns or shifts in investment strategy.

The influence of these investors extends beyond just stock price movements. They can also engage with company management on issues such as corporate governance, executive compensation, and strategic direction. While Guidewire Software, Inc. (GWRE) does not currently have any publicly known activist investors, the presence of large institutional holders means that management is likely attentive to their concerns and perspectives.

Here's a table summarizing key aspects of Guidewire Software, Inc. (GWRE)'s investor profile:

Keeping an eye on these investors and their actions is crucial for understanding the dynamics of Guidewire Software, Inc. (GWRE)'s stock and the potential future direction of the company. For further insights into Guidewire Software, Inc. (GWRE)'s financial standing, consider exploring: Breaking Down Guidewire Software, Inc. (GWRE) Financial Health: Key Insights for Investors

Guidewire Software, Inc. (GWRE) Market Impact and Investor Sentiment

Understanding investor sentiment and market reactions is crucial for evaluating Guidewire Software, Inc. (GWRE). Recent market behavior and analyst perspectives provide valuable insights into the company's trajectory.

As of the third quarter of fiscal year 2024, Guidewire Software, Inc. reported strong financial results. The company's total revenue was $273.3 million, a 14% increase year-over-year. Subscription revenue was a significant driver, reaching $118.6 million, up 30% from the previous year. These figures indicate positive investor sentiment, as revenue growth often attracts and retains investors.

Institutional investors play a significant role in Guidewire Software, Inc. Here's a snapshot of their involvement:

• Vanguard Group Inc.: Holds 7,488,722 shares, representing about 9.19% ownership.
• BlackRock Fund Advisors: Owns 6,024,827 shares, approximately 7.40% of the company.
• T. Rowe Price Associates Inc.: Has 4,788,945 shares, accounting for roughly 5.87% ownership.

These major institutional holdings suggest a strong confidence in Guidewire Software, Inc.'s long-term prospects. Recent transactions by these and other institutional investors can influence market sentiment.

Here's a look at recent ownership changes:

These transactions reflect ongoing adjustments in investor portfolios, potentially driven by Guidewire Software, Inc.'s performance and broader market conditions. Increased holdings by Vanguard and BlackRock indicate a bullish outlook, while decreased holdings may reflect profit-taking or portfolio rebalancing.

Analysts' perspectives further shape investor sentiment. Recent reports highlight Guidewire Software, Inc.'s strategic positioning in the property and casualty (P&C) insurance software market. Analysts at firms like JMP Securities and Needham have reiterated positive ratings, emphasizing the company's strong subscription growth and market leadership. These endorsements can boost investor confidence.

For additional insights into the company's values and long-term goals, refer to: Mission Statement, Vision, & Core Values of Guidewire Software, Inc. (GWRE).

Overall, the investor sentiment surrounding Guidewire Software, Inc. appears positive, driven by solid financial performance, significant institutional ownership, and favorable analyst ratings. Monitoring these factors is essential for understanding the company's market dynamics and future potential.