Buy now (tactical entry near support): Price (~132) is sitting just above S1 ~129, with RSI(6)=18.7 (oversold)—a setup that often produces a reflex bounce even inside a broader downtrend.
Fundamentals + Wall St are clearly constructive (multiple Buys/Outperforms and very large price targets), and hedge funds increased buying (+125.93% QoQ)—supporting a “buy the dip” posture.
Near-term path is still choppy (bearish moving averages + negative MACD), so the buy case is strongest as a bounce / swing entry rather than “trend-following momentum.”
Momentum: MACD histogram -2.168 (below 0) but “negatively contracting” suggests downside momentum may be weakening (early stabilization signal).
Overbought/Oversold: RSI_6 = 18.732 (oversold), increasing odds of a short-term rebound.
Key levels:
Support: S1 128.998, then S2 119.209
Resistance: Pivot 144.843, then R1 160.689
Pattern-based outlook (similar candlesticks): next day biased slightly down, next week slightly up, next month slightly down (mixed/mean-reversion favored over trend).
Options Data
Bullish
Open Interest Put-Call Ratio
Bearish
Option Volume Put-Call Ratio
Positioning (Open Interest): Put/Call OI 0.83 = more calls than puts outstanding (mildly bullish baseline sentiment).
Flow (Today’s Volume): Put/Call volume 3.95 with 229 puts vs 58 calls = bearish / hedging-heavy tape today.
Volatility: IV 30D 61.06 vs HV 48.83 and IV percentile 96% = options are priced expensively right now (market expecting large moves).
Unusual activity: Today’s volume 287 is ~23.22x 30-day average; open interest ~117.52% of 30-day average—elevated attention and hedging demand.
Technical Summary
Sell
9
Buy
5
Positive Catalysts
Strong latest quarter (2026/Q1): Revenue +26.53% YoY, EPS +227.27% YoY, net income +242.58% YoY, gross margin +4.55% YoY.
Institutional behavior: Hedge funds net buying increased +125.93% over last quarter.
Analyst tone remains bullish overall (multiple Buy/Outperform ratings; high conviction around cloud transition and multi-year growth).
No negative news over the last week (no fresh headline overhang in the provided feed).
Neutral/Negative Catalysts
alongside very high IV percentile (96%) suggests traders are paying up for protection.
Financial Performance
Latest quarter: 2026/Q1
Revenue: $332.639M (+26.53% YoY)
Net Income: $31.308M (+242.58% YoY)
EPS: $0.36 (+227.27% YoY)
Gross Margin: 62.99% (+4.55% YoY)
Takeaway: Clear growth + profitability inflection (margin expansion and sharply higher earnings), consistent with a scaling subscription/cloud model.
Growth
Profitability
Efficiency
Analyst Ratings and Price Target Trends
Recent trend: Predominantly bullish coverage/actions with high price targets; one notable price target trim but rating stayed positive.
Key actions:
BTIG (2025-12-16): Buy, PT $250 (positions GWRE as a “runaway leader” in P&C insurance modernization).
DA Davidson (2025-12-17): Upgraded to Buy, PT $246 (views pullback as opportunity; forecasts 15%–17% multi-year revenue CAGR).
Citizens (2025-12-12): Outperform, PT raised to $300 (cloud migration fear seen as overstated).
Cons: valuation/catalyst timing concerns (especially from Neutral-rated coverage).
People Also Watch
Wall Street analysts forecast GWRE stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for GWRE is 279.6 USD with a low forecast of 245 USD and a high forecast of 305 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
Wall Street analysts forecast GWRE stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for GWRE is 279.6 USD with a low forecast of 245 USD and a high forecast of 305 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Buy
2 Hold
0 Sell
Strong Buy
Current: 125.990
Low
245
Averages
279.6
High
305
Current: 125.990
Low
245
Averages
279.6
High
305
Wells Fargo
Michael Turrin
Overweight
downgrade
$275 -> $250
AI Analysis
2026-01-08
Reason
Wells Fargo
Michael Turrin
Price Target
$275 -> $250
AI Analysis
2026-01-08
downgrade
Overweight
Reason
Wells Fargo analyst Michael Turrin lowered the firm's price target on Guidewire to $250 from $275 and keeps an Overweight rating on the shares. The firm believes that AI is still "the name of the 2026 game." Wells sees three key ways to play, namely infrastructure, incumbents, and innovation. While adoption will likely be uneven, secular trend will ultimately drive 2026 performance, it adds.
DA Davidson
Neutral -> Buy
upgrade
$246
2025-12-17
Reason
DA Davidson
Price Target
$246
2025-12-17
upgrade
Neutral -> Buy
Reason
As previously reported, DA Davidson upgraded Guidewire to Buy from Neutral with an unchanged $246 price target. The stock has pulled back about 20% after the company's Q1 results in early December, but Guidewire should be considered as a core holding for investors looking for high-quality, vertical-market leaders in application software, and the pullback represents an opportunity, the analyst tells investors in a research note. Guidewire has made real progress on their transition to the cloud / subscription model, further cementing their leadership position in InsureTech, and over the next three years, the firm is forecasting 15%-17% compound annual growth in total revenue, with much more rapid growth in recurring Subscription revenue, DA Davidson added.
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