Texas Permanent School Fund Cuts Goosehead Insurance Holdings by 68%

Texas Permanent School Fund Corp has significantly reduced its stake in Goosehead Insurance (NASDAQ: GSHD) by 68.4% during the second quarter of 2023. The recent filing with the Securities and Exchange Commission (SEC) revealed that the fund now owns 9,972 shares, down from 21,596 shares previously held, representing a total value of approximately $1,052,000.

Several other institutional investors have also made adjustments to their positions in Goosehead Insurance. Notably, Caxton Associates LLP acquired a new stake valued at about $2,140,000 during the same quarter. Additionally, the Public Sector Pension Investment Board increased its holdings by 10.5%, bringing its total ownership to 85,443 shares, worth around $9,015,000. Other firms, such as CANADA LIFE ASSURANCE Co and Tower Research Capital LLC TRC, also expanded their investments in Goosehead Insurance, reflecting a broader interest in the company.

Insider Transactions and Stock Performance

In related news, insider trading activity has seen notable purchases. John Terry O’Connor, the General Counsel, bought 2,100 shares on November 26, 2023, at an average price of $71.81 per share, totaling approximately $150,801. Following this transaction, O’Connor’s holdings increased to 3,100 shares, valued around $222,611. Similarly, CEO Mark Miller purchased 5,000 shares on November 28, 2023, at an average cost of $72.34, amounting to $361,700. This acquisition raised Miller’s total ownership to 35,000 shares, currently valued at $2,531,900.

Over the last quarter, insiders collectively acquired 7,973 shares of Goosehead Insurance, valued at $577,487. Notably, insiders now hold 48.35% of the company’s stock, indicating strong internal confidence.

Financial Performance and Analyst Ratings

Goosehead Insurance recently reported its quarterly earnings on October 23, 2023. The company posted earnings per share (EPS) of $0.46, falling short of analysts’ expectations of $0.54 by $0.08. The company’s revenue for the quarter amounted to $90.44 million, which also missed projections of $94.25 million. Despite this, Goosehead’s revenue grew by 15.9% year-over-year, reflecting sustained demand for its services.

Analysts have offered mixed ratings on Goosehead Insurance. Recently, JPMorgan Chase & Co. lowered its price target from $101.00 to $85.00, maintaining a “neutral” rating. In contrast, Citigroup reaffirmed an “outperform” rating, while Jefferies Financial Group initiated coverage with a “buy” rating and a target of $93.00. Overall, six analysts have rated the stock as a “buy,” six as a “hold,” and one as a “sell,” leading to a consensus rating of “hold” with a price target of $92.20.

Goosehead Insurance operates as a technology-driven insurance agency, providing a range of personal and commercial insurance products through a network of independent advisors. Founded in 2003 and headquartered in Westlake, Texas, the company continues to expand its presence across more than 40 states in the United States. Its focus on leveraging technology to streamline the insurance shopping experience positions it well in a competitive market.