5 Tech Stocks to Sell in 2022 According to Billionaire Stanley Druckenmiller

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

Number of Hedge Fund Holders: 27

Guidewire Software, Inc. (NYSE:GWRE) is a California-based company that offers software products for property and casualty insurance businesses around the world. The company provides Guidewire InsuranceSuite, containing applications like Guidewire PolicyCenter, BillingCenter, and ClaimCenter. Stanley Druckenmiller sold his $10 million Guidewire Software, Inc. (NYSE:GWRE) position entirely in Q1 2022. 

On April 19, RBC Capital analyst Rishi Jaluria initiated coverage of Guidewire Software, Inc. (NYSE:GWRE) with an Outperform rating and a $125 price target. According to the analyst, Guidewire Software, Inc. (NYSE:GWRE)’s “attractive” valuation of enterprise value 7.5-times expected 2023 revenue, in line with vertical software rivals, is supported by its leading market position, lucrative vertical opportunity, and feasible financial model after the cloud transition.

According to Insider Monkey’s fourth quarter database, 27 hedge funds were long Guidewire Software, Inc. (NYSE:GWRE), compared to 26 funds in the prior quarter. Sharlyn C. Heslam’s Stockbridge Partners is a significant shareholder of the company, with 4.7 million shares worth $448.2 million. 

Here is what Weitz Investment Management Hickory Fund has to say about Guidewire Software, Inc. (NYSE:GWRE) in its Q4 2021 investor letter:

“In the second half of the year, resurgent inflation and higher interest rate fears reined in investor appetite for higher-growth assets trading at premium multiples. Within our portfolio, this has included enterprise software provider Guidewire – our chief detractors from calendar year performance. Each is a leader in its respective, specific market, and we continue to have a lot of confidence in the long-term outlook for each. We also note that our investment thesis has always contemplated a higher-interest-rate environment. While this rotation may reasonably bring some market “highflyers” back to Earth, we continue to watch for opportunities to add to these terrific businesses should further pressure yield attractive prices.”