Goosehead Insurance (NASDAQ:GSHD) Trading Down 6.8% After Analyst Downgrade

Shares of Goosehead Insurance (NASDAQ:GSHD) dropped 6.8% on Thursday after BMO Capital Markets lowered their price target on the stock from $79.00 to $55.00. BMO Capital Markets currently has a market perform rating on the stock. Goosehead Insurance traded as low as $44.00 and last traded at $44.1810. Approximately 177,506 shares traded hands during mid-day trading, a decline of 58% from the average daily volume of 426,035 shares. The stock had previously closed at $47.38.

A number of other research firms also recently issued reports on GSHD. Truist Financial cut their price target on Goosehead Insurance from $72.00 to $58.00 and set a “hold” rating for the company in a research note on Wednesday. Citigroup reiterated an “outperform” rating on shares of Goosehead Insurance in a report on Wednesday. Cantor Fitzgerald dropped their price target on Goosehead Insurance from $125.00 to $111.00 and set an “overweight” rating on the stock in a research report on Wednesday, January 14th. Citizens Jmp lowered their target price on shares of Goosehead Insurance from $140.00 to $125.00 and set a “market outperform” rating for the company in a research note on Wednesday. Finally, Keefe, Bruyette & Woods dropped their target price on Goosehead Insurance from $95.00 to $85.00 and set an “outperform” rating on the stock in a research report on Wednesday. Seven research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Goosehead Insurance presently has an average rating of “Hold” and a consensus price target of $84.00.

Insider Buying and Selling at Goosehead Insurance

In other Goosehead Insurance news, General Counsel John Terry O’connor acquired 2,100 shares of the firm’s stock in a transaction dated Wednesday, November 26th. The shares were acquired at an average price of $71.81 per share, for a total transaction of $150,801.00. Following the completion of the acquisition, the general counsel directly owned 3,100 shares of the company’s stock, valued at $222,611. This trade represents a 210.00% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, Director Thomas Mcconnon sold 69,686 shares of the stock in a transaction on Monday, December 1st. The shares were sold at an average price of $73.62, for a total transaction of $5,130,283.32. Following the transaction, the director owned 269,322 shares in the company, valued at $19,827,485.64. This trade represents a 20.56% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 48.35% of the company’s stock.

Key Stories Impacting Goosehead Insurance

Here are the key news stories impacting Goosehead Insurance this week:

• Positive Sentiment: Q4 total revenue beat expectations — Company reported total revenue of $105.3M (+12% YoY) and core revenues of $78.2M. GlobeNewswire: Q4 and FY2025 Results
• Positive Sentiment: EPS beat consensus: $0.64 reported vs. ~$0.54 consensus, showing the quarter outperformed street EPS expectations. Zacks: Q4 Earnings and Revenues Beat
• Positive Sentiment: Buyback expansion — Board expanded share‑repurchase authorization by $180M and the company repurchased $81.7M in 2025, supporting capital return. GlobeNewswire: Buyback & Results
• Neutral Sentiment: Management set 2026 targets and is increasing AI/tech investments, forecasting 10%–19% organic revenue growth — signals longer‑term growth focus but increased investment spend. Seeking Alpha: 2026 Guidance & AI Investment
• Neutral Sentiment: Earnings call and transcripts provide management commentary (growth initiatives, tech strategy) for deeper due diligence. MSN: Q4 Earnings Call Transcript
• Negative Sentiment: Profitability softened YoY — net income and EPS declined vs. 2024 (Q4 EPS $0.64 vs $0.79 year‑ago; full‑year net income fell), raising concerns about margin pressure. GlobeNewswire: Results & Profitability
• Negative Sentiment: Analyst reaction turned cautious: Truist cut its price target to $58 and moved to a “hold” rating, signaling increased near‑term skepticism. StreetInsider/Benzinga: Truist PT Cut
• Negative Sentiment: Other firms trimmed targets (Keefe Bruyette & Woods to $85; Citizens JMP from $140 to $125) — mixed analyst revisions add to near‑term volatility. TickerReport/Benzinga: PT Changes

Institutional Trading of Goosehead Insurance

Several institutional investors have recently added to or reduced their stakes in the company. Bank of Montreal Can grew its stake in shares of Goosehead Insurance by 2.2% during the 2nd quarter. Bank of Montreal Can now owns 5,299 shares of the company’s stock valued at $559,000 after acquiring an additional 116 shares during the period. Bryce Point Capital LLC increased its position in shares of Goosehead Insurance by 2.2% in the 2nd quarter. Bryce Point Capital LLC now owns 6,954 shares of the company’s stock valued at $734,000 after acquiring an additional 148 shares during the period. Ameritas Investment Partners Inc. increased its holdings in shares of Goosehead Insurance by 7.0% during the 2nd quarter. Ameritas Investment Partners Inc. now owns 2,436 shares of the company’s stock valued at $257,000 after purchasing an additional 159 shares in the last quarter. Amalgamated Bank lifted its stake in Goosehead Insurance by 2.5% in the 2nd quarter. Amalgamated Bank now owns 7,051 shares of the company’s stock valued at $744,000 after buying an additional 170 shares in the last quarter. Finally, CWM LLC increased its stake in Goosehead Insurance by 73.8% during the 2nd quarter. CWM LLC now owns 471 shares of the company’s stock worth $50,000 after buying an additional 200 shares during the period.

Goosehead Insurance Stock Performance

The stock has a market capitalization of $1.63 billion, a PE ratio of 42.49, a P/E/G ratio of 6.41 and a beta of 1.54. The stock’s 50-day moving average is $67.65 and its 200 day moving average is $73.17.

Goosehead Insurance (NASDAQ:GSHD) last released its earnings results on Tuesday, February 17th. The company reported $0.64 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.54 by $0.10. The company had revenue of $78.20 million for the quarter, compared to analyst estimates of $99.67 million. Goosehead Insurance had a net margin of 7.62% and a negative return on equity of 21.80%. The firm’s quarterly revenue was up 12.1% on a year-over-year basis. During the same period in the prior year, the firm earned $0.79 EPS. Analysts expect that Goosehead Insurance will post 0.83 earnings per share for the current year.

About Goosehead Insurance

Goosehead Insurance (NASDAQ: GSHD) is a technology-driven insurance agency that connects consumers with a broad range of personal and commercial insurance products through an extensive network of independent insurance advisors. The company specializes in homeowners, auto, flood, dwelling fire, umbrella, life, and commercial lines coverage, working with multiple national and regional carriers to offer tailored policies. By combining advanced quoting tools with local market expertise, Goosehead streamlines the insurance shopping process and helps clients find competitive coverage options.

Founded in 2003 and headquartered in Westlake, Texas, Goosehead has grown its footprint across more than 40 states in the U.S.