WESTLAKE, TX—Mark Miller, President and CEO of Goosehead Insurance, Inc. (NASDAQ:GSHD), recently sold a significant portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Miller sold a total of 61,622 shares of Goosehead Insurance Class A Common Stock over two days, realizing approximately $6.79 million. The sales were executed at prices ranging from $110.00 to $111.16 per share.
On November 6, Miller sold 3,295 shares at $110 per share, followed by the sale of 57,927 shares at an average price of $110.21 on November 7. An additional 400 shares were sold at $111.16. These transactions reduced his direct ownership to 30,000 shares following the sales.
In addition to the sales, Miller also exercised stock options to acquire a total of 61,622 shares at $10 each, on both November 6 and 7. The transactions reflect a strategic rebalancing of his holdings in Goosehead Insurance, a leading insurance brokerage firm based in Westlake, Texas.
In other recent news, Goosehead Insurance has made significant strides in its financial performance. The company's Q3 results reported a record $1 billion in quarterly premiums, marking a tenfold increase since its IPO in 2018. Total (EPA:TTEF) written premiums and revenues also saw growth of 28% and 10% respectively, reaching $78 million. Based on this performance, Goosehead Insurance has revised its 2024 guidance for total written premiums to between $3.7 billion and $3.82 billion, and total revenues to between $295 million and $310 million.
Piper Sandler and RBC (TSX:RY) Capital, two analyst firms, have expressed confidence in the company's potential. Piper Sandler increased its price target for Goosehead Insurance from $103.00 to $122.00, maintaining an Overweight rating, while RBC Capital raised its target to $109 from $95, also maintaining an Outperform rating. Both firms acknowledged the company's recent earnings report, which surpassed expectations, and the firm's strong market position.
Among other recent developments, Goosehead Insurance announced plans to open a new corporate office in Phoenix as part of its expansion strategy. The company reported strong franchise premium growth at 33% and corporate premium growth at 12%, despite temporary production impacts due to hurricanes. These developments suggest that Goosehead Insurance is poised to continue its upward trend in the insurance sector.
InvestingPro Insights
The recent stock sales by Goosehead Insurance's CEO Mark Miller come at a time when the company's stock is trading near its 52-week high, according to InvestingPro data. With a market capitalization of $4.2 billion, Goosehead's shares have shown impressive performance, boasting a 58.04% return over the past year and a substantial 91.53% gain in the last six months.
InvestingPro Tips highlight that Goosehead's net income is expected to grow this year, and six analysts have revised their earnings upwards for the upcoming period. This positive outlook aligns with the company's strong financial performance, as evidenced by its revenue growth of 11.18% over the last twelve months.
However, investors should note that Goosehead is trading at a high earnings multiple, with a P/E ratio of 145.42. This valuation metric, combined with the InvestingPro Tip indicating that the stock's RSI suggests it's in overbought territory, may explain why the CEO has chosen to sell a portion of his holdings at current price levels.
For those interested in a deeper analysis, InvestingPro offers 16 additional tips for Goosehead Insurance, providing a more comprehensive view of the company's financial health and market position.
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