5 Best Stocks to Buy According to Anand Desai’s Darsana Capital

4. Guidewire Software, Inc. (NYSE:GWRE)

Darsana Capital Stake Value: $297,175,000
Percentage of Darsana Capital’s 13F Portfolio: 9.79%
Number of Hedge Fund Holders: 26

Guidewire Software, Inc. (NYSE:GWRE), or simply Guidewire, is a San Mateo, California-based software firm. In December, Guidewire Software, Inc. (NYSE:GWRE) reported earnings for the first quarter fiscal year 2022, posting earnings per share of -$0.21, exceeding estimates by $0.04. The quarterly revenue was down 2.3% from the prior-year quarter, amounting to $165.9 million, beating estimates by $1.17 million.

After its Q1 earnings beat and above-consensus Q2 guidance, BTIG analyst Matt VanVliet

boosted his price target on Guidewire Software, Inc. (NYSE:GWRE) to $146 from $138 in December and kept a “Buy” rating on the stock.

At the end of the third quarter of 2021, 26 hedge funds in the database of Insider Monkey held stakes worth $2.01 billion in Guidewire Software, Inc. (NYSE:GWRE), down from 27 the preceding quarter worth $1.84 billion. 

Wasatch Global Investors, an investment management firm, in its first-quarter 2021 investor letter mentioned Guidewire Software, Inc. (NYSE:GWRE). Here is what the fund said:

“Guidewire Software, Inc. (GWRE) was another large detractor. The company provides enterprise software for the property and casualty insurance industry. The software supports collaborative workflow, cooperation with external partners and rule-based decision making—all of which characterize modern underwriting and claims operations. Guidewire’s InsuranceSuite platform allows insurance-industry customers to manage claims, policies and billing functions. Other modules can be added to assist in data management, analytics and digital engagement. We believe Guidewire will eventually be well-positioned to benefit as insurance companies increasingly replace their core (usually on-premises) legacy software with centralized, cloud-based offerings. In the shortterm, however, Guidewire has seen some challenges with its move to the cloud. We think these challenges, along with the broad correction among technology names, accounted for the stock-price decline.”