Mixed Analyst Sentiment on Goosehead Insurance as Price Targets Adjusted

By Don Francis, Editor
April 3, 2024 4:45 AM UTC
Mixed Analyst Sentiment on Goosehead Insurance as Price Targets Adjusted

Truist Securities's Mark Hughes lowered their price target on Goosehead Insurance (NASDAQ: GSHD) by 6.7% from $75 to $70 on 2024/03/28. The analyst maintained their Hold rating on the stock.

Hughes explained that the decrease in the price target was due to a revision in their Q1 2024 EPS estimate for Goosehead Insurance. The estimate was cut from $0.35 to $0.23 to account for the seasonality in the business. However, Hughes noted that this revision did not affect their FY 2025 EPS estimate, stating that even with the incorporation of greater seasonality, the overall topline of Goosehead Insurance has only a modest gearing to a mortgage recovery.

This update from Truist Securities was just one of the analyst ratings received by Goosehead Insurance on March 28, 2024. Piper Sandler's Paul Newsome raised their price target by 3.5% from $85 to $88, while maintaining their Strong Buy rating on the stock. On the other hand, BMO Capital's Michael Zaremski lowered their price target by -5.3% from $95 to $90, but also maintained their Buy rating on the stock.

As of now, 75% of the top-rated analysts rate GSHD as a Strong Buy or Buy, with 25% viewing it as a Hold. There are no analysts recommending or strongly recommending selling the stock.

The consensus forecast among analysts is that Goosehead Insurance's upcoming year will deliver earnings per share (EPS) of $0.78. If this forecast proves correct, it would represent a 32.4% increase in EPS on a year-over-year basis.

Looking at the stock's performance, GSHD has seen a year-over-year increase of 32.9%. During this period, Goosehead Insurance has outpaced the S&P 500, which has seen a 26.2% increase.

Mark Hughes, the Truist Securities analyst who provided the rating update, is highly regarded in the industry. They are ranked in the top 2% out of 4,530 Wall Street analysts by WallStreetZen, with an average return of 26.1% and an impressive 84% win rate. Hughes specializes in the Energy, Healthcare, and Financial Services sectors.

Goosehead Insurance, Inc. operates as a holding company for Goosehead Financial, LLC, which offers personal lines insurance agency services in the United States. The company operates through two segments, Corporate Channel and Franchise Channel. Its range of insurance products and services includes homeowner's insurance, automotive insurance, flood insurance, wind insurance, earthquake insurance, excess liability or umbrella insurance, motorcycle insurance, recreational vehicle insurance, general liability insurance, property insurance, and life insurance. As of December 31, 2021, the company had a total of 2,151 franchises. Goosehead Insurance, Inc. was founded in 2003 and is headquartered in Westlake, Texas.

What is the target price for GSHD?

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