Piper Sandler analyst Paul Newsome downgraded the rating on GooseHead Insurance to a Hold today, setting a price target of $109.00.
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Paul Newsome has given his Hold rating due to a combination of factors influencing GooseHead Insurance’s current market position. Despite the company’s strong growth platform and promising long-term prospects, its recent earnings report for the second quarter of 2025 did not meet the anticipated revenue growth acceleration. The adjusted earnings slightly missed expectations, and the revenue guidance for 2025 remained unchanged, leading to a reassessment of its growth trajectory.
Additionally, while GooseHead Insurance’s valuation is considered high, it is perceived as fully valued given its current growth rate. The company’s stock trades at a significant premium compared to its peers, which raises concerns about its valuation sustainability if growth expectations are not met. Consequently, Paul Newsome has adjusted the earnings per share estimates for 2025 and 2026 downward, reflecting a more cautious outlook on the company’s financial performance. These factors collectively contribute to the Hold rating, indicating a balanced view of potential risks and rewards.
Based on the recent corporate insider activity of 43 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of GSHD in relation to earlier this year.