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Goosehead Insurance (GSHD)

Goosehead Insurance Inc. is a rapidly growing and innovative independent personal lines insurance agency that distributes its products and services throughout the United States. Goosehead was founded on the premise that the consumer should be at the center of its universe and that everything the company does should be directed at providing extraordinary value by offering broad product choice and a world-class service experience. Goosehead represents over 140 insurance companies that underwrite personal lines and small commercial lines risks, and its operations include a network of nine corporate sales offices and over 1,468 operating and contracted franchise locations.

Company profile

Ticker
GSHD
Exchange
CEO
Mark Jones
Employees
Incorporated
Location
Fiscal year end
SEC CIK
Subsidiaries
Goosehead Financial, LLC • GHM Holdings, LLC • TWIHG Holdings, LLC • Goosehead Management, LLC • Texas Wasatch Insurance Holdings Group, LLC • Goosehead Insurance Holdings, LLC • Goosehead Insurance Agency, LLC • Texas Wasatch Insurance Services, L.P. ...

GSHD stock data

Analyst ratings and price targets

Last 3 months
Current price
Average target
$78.50
Low target
$57.00
High target
$100.00
RBC Capital
Maintains
Outperform
$100.00
28 Jul 22
Piper Sandler
Maintains
Overweight
$57.00
12 Jul 22

Calendar

27 Jul 22
25 Sep 22
31 Dec 22
Quarter (USD) Jun 22 Mar 22 Dec 21 Sep 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20 Dec 19 Dec 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 33.55M 33.55M 33.55M 33.55M 33.55M 33.55M
Cash burn (monthly) (no burn) 248.17K (no burn) (no burn) (no burn) (no burn)
Cash used (since last report) n/a 709.18K n/a n/a n/a n/a
Cash remaining n/a 32.84M n/a n/a n/a n/a
Runway (months of cash) n/a 132.3 n/a n/a n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
30 Aug 22 Waded Cruzado Class A Common Stock Buy Acquire P No No 52.8039 93 4.91K 93
26 Aug 22 & Robyn Jones Descendants Trust 2014 Mark Class A Common Stock Sell Dispose S No No 62.48 218 13.62K 0
26 Aug 22 & Robyn Jones Descendants Trust 2014 Mark Class A Common Stock Sell Dispose S No No 61.53 700 43.07K 218
26 Aug 22 & Robyn Jones Descendants Trust 2014 Mark Class A Common Stock Sell Dispose S No No 60.16 3,096 186.26K 918
26 Aug 22 & Robyn Jones Descendants Trust 2014 Mark Class A Common Stock Conversion Acquire C No No 0 4,014 0 4,014
26 Aug 22 & Robyn Jones Descendants Trust 2014 Mark Class B Common Stock Conversion Dispose C No No 0 4,014 0 9,313,936
26 Aug 22 & Robyn Jones Descendants Trust 2014 Mark LLC Units in Goosehead Financial, LLC Class A Common Stock Conversion Dispose C No No 0 4,014 0 9,313,936
26 Aug 22 Jones Mark Evan Class A Common Stock Sell Dispose S No No 62.48 200 12.5K 197,501
26 Aug 22 Jones Mark Evan Class A Common Stock Sell Dispose S No No 61.63 600 36.98K 197,701
26 Aug 22 Jones Mark Evan Class A Common Stock Sell Dispose S No No 60.18 3,044 183.19K 198,301
24.4% owned by funds/institutions
13F holders Current Prev Q Change
Total holders 164 181 -9.4%
Opened positions 22 26 -15.4%
Closed positions 39 34 +14.7%
Increased positions 62 63 -1.6%
Reduced positions 51 66 -22.7%
13F shares Current Prev Q Change
Total value 1.01B 1.58B -36.2%
Total shares 22.11M 20.15M +9.7%
Total puts 0 2.6K EXIT
Total calls 13K 27.5K -52.7%
Total put/call ratio 0.1
Largest owners Shares Value Change
Wasatch Advisors 3.01M $137.37M +101.0%
Kayne Anderson Rudnick Investment Management 1.89M $86.38M +9.9%
Vanguard 1.73M $78.92M +2.3%
Capital International Investors 1.31M $59.78M -10.1%
BLK Blackrock 1.25M $57.1M -0.3%
Durable Capital Partners 891.78K $40.73M -4.4%
Allspring Global Investments 697.26K $31.84M -2.0%
Capital World Investors 568K $25.94M 0.0%
DF Dent & Co 547.71K $25.01M +1342.6%
STT State Street 521.14K $23.8M +10.0%
Largest transactions Shares Bought/sold Change
Wasatch Advisors 3.01M +1.51M +101.0%
Blair William & Co 215.67K -571.07K -72.6%
DF Dent & Co 547.71K +509.74K +1342.6%
FMR 177.76K -412.03K -69.9%
Capital Research Global Investors 0 -306.47K EXIT
Kayne Anderson Rudnick Investment Management 1.89M +169.69K +9.9%
MS Morgan Stanley 230.77K +167.96K +267.4%
SEIC SEI Investments 223.98K +165.07K +280.2%
Owls Nest Partners IA 399.79K +157.18K +64.8%
Capital International Investors 1.31M -147.46K -10.1%

Financial report summary

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Competition
BRP
Risks
  • Volatility or declines in premiums or other adverse trends in the insurance industry may seriously undermine our profitability.
  • Because the revenue we earn on the sale of certain insurance products is based on premiums and commission rates set by Carriers, any decreases in these premiums or commission rates, or actions by Carriers seeking repayment of commissions, could result in revenue decreases or expenses to us.
  • Contingent Commissions we receive from Carriers are less predictable than standard commissions, and any decrease in the amount of the commissions we receive could adversely affect our results of operations.
  • Our business is subject to risks related to legal proceedings and governmental inquiries.
  • Conditions impacting Carriers or other parties that we do business with may impact us.
  • Regulations affecting Carriers with which we place business affect how we conduct our operations.
  • Competition in our industry is intense and, if we are unable to compete effectively, we may lose clients and our financial results may be negatively affected.
  • Our business, financial condition and results of operations may be negatively affected by E&O claims.
  • Our business is dependent upon information processing systems. Data breaches or other security incidents with respect to our or our vendors' information processing systems may damage our reputation and negatively impact client retention and carrier, franchise, and Referral Partner relationships.
  • We rely on the availability and performance of information technology services provided by third parties.
  • Our inability to successfully recover should we experience a disaster or other business continuity problem could cause material financial loss, loss of human capital, regulatory actions, reputational harm or legal liability.
  • If we are unable to apply technology effectively in driving value for our clients through technology-based solutions or gain internal efficiencies and effective internal controls through the application of technology and related tools, our operating results, client relationships, growth and compliance programs could be adversely affected.
  • Damage to our reputation could have a material adverse effect on our business.
  • Increasing scrutiny and changing expectations from investors, clients and our employees with respect to our environmental, social and governance (“ESG”) practices may impose additional costs on us or expose us to new or additional risks.
  • Climate risks, including the risk of an economic crisis, risks associated with the physical effects of climate change and disruptions caused by the transition to a low-carbon economy, could adversely affect our business, results of operations and financial condition.
  • Our inability to retain or hire qualified employees, as well as the loss of any of our executive officers, could negatively impact our ability to retain existing business and generate new business.
  • Non-compliance with or changes in laws, regulations or licensing requirements applicable to us could restrict our ability to conduct our business.
  • Proposed tort reform legislation, if enacted, could decrease demand for casualty insurance, thereby reducing our commission revenues.
  • In connection with the implementation of our corporate strategies, we face risks associated with the acquisition or disposition of businesses, the entry into new lines of business, the integration of acquired businesses and the growth and development of these businesses.
  • We have debt outstanding that could adversely affect our financial flexibility and subjects us to restrictions and limitations that could significantly impact our ability to operate our business.
  • Changes to reference rates could materially adversely affect our earnings
  • Changes in our accounting estimates and assumptions could negatively affect our financial position and operating results.
  • Because our business is highly concentrated in Texas, California, Florida and Illinois, adverse economic conditions, natural disasters, or regulatory changes in these states could adversely affect our financial condition.
  • Changes in tax laws could impact our operations and profitability.
  • We derive a significant portion of our commission revenues from a limited number of Carriers, the loss of which would result in additional expense and loss of market share.
  • Our business may be harmed if we lose our relationships with Carriers, fail to maintain good relationships with Carriers, become dependent upon a limited number of Carriers or fail to develop new Carrier relationships.
  • The failure by Mark Jones and Robyn Jones to maintain either a minimum voting interest in us or the ability to elect or designate for election at least a majority of our board of directors could trigger a change of control default under our Credit Agreement.
  • Our results may be adversely affected by changes in the mode of compensation in the insurance industry.
  • The failure to attract and retain highly qualified Franchisees could compromise our ability to expand the Goosehead network.
  • Our financial results are affected directly by the operating results of Franchisees and agents, over whom we do not have direct control.
  • Our Franchisees and agents could take actions that could harm our business.
  • We are subject to a variety of additional risks associated with our Franchisees.
  • Failure to support our expanding franchise system could have a material adverse effect on our business, financial condition or results of operations.
  • Our franchising activities are subject to a variety of state and federal laws and regulations regarding franchises, and any failure to comply with such existing or future laws and regulations could adversely affect our business.
  • We are subject to certain risks related to litigation filed by or against us, and adverse results may harm our business and financial condition.
  • We may not be able to manage growth successfully.
  • Our business depends on a strong brand, and any failure to maintain, protect and enhance our brand would hurt our ability to grow our business, particularly in new markets where we have limited brand recognition.
  • Infringement, misappropriation, dilution or other violation of our intellectual property by third parties could harm our business.
  • Failure to obtain, maintain, protect, defend or enforce our intellectual property rights, or allegations that we have infringed, misappropriated or otherwise violated the intellectual property rights of others, could harm our reputation, ability to compete effectively, financial condition and business.
  • Improper disclosure of confidential, personal or proprietary information, whether due to human error, misuse of information by employees or vendors, or as a result of cyberattacks or other security incidents
  • with respect to our or our vendors’ systems, could result in regulatory scrutiny, legal liability or reputational harm, and could have an adverse effect on our business or operations.
  • We are subject to complex and evolving laws, regulations, rules, industry standards and contractual obligations regarding data privacy and cybersecurity, which can increase the cost of doing business, compliance risks and potential liability.
  • We are a holding company and our principal asset is our 54% ownership interest in Goosehead Financial, LLC, and we are accordingly dependent upon distributions from Goosehead Financial, LLC to pay dividends, if any, taxes, make payments under the tax receivable agreement and pay other expenses.
  • In certain circumstances, Goosehead Financial, LLC will be required to make distributions to us and the other holders of LLC Units, and the distributions that Goosehead Financial, LLC will be required to make may be substantial.
  • We have Pre-IPO LLC Members who own a significant portion of our common stock and whose interests in our business may be different than yours, and certain statutory provisions afforded to stockholders are not applicable to us.
  • We will be required to pay the Pre-IPO LLC Members for certain tax benefits we may claim, and the amounts we may pay could be significant.
  • Some provisions of Delaware law and our certificate of incorporation and by-laws may deter third parties from acquiring us and diminish the value of our Class A common stock.
  • Future sales, or the possibility of future sales, of a substantial number of our shares of Class A common stock could adversely affect the price of our shares of Class A common stock.
  • We may not be able to successfully maintain effective internal controls over financial reporting.
  • We expect that our stock price will be volatile, which could cause the value of your investment to decline, and you may not be able to resell your shares at or above your investment price.
  • Our ability to pay dividends to our stockholders may be limited by our holding company structure, contractual restrictions and regulatory requirements.
  • If securities analysts do not publish research or reports about our business or if they publish negative evaluations of our Class A common stock, the price of our Class A common stock could decline.

Content analysis

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Positive
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Uncertain
Constraining
Legalese
Litigous
Readability
H.S. freshman Avg
New words: beginning, billion, chain, demand, inflation, inflationary, labor, outlook, persist, quarantine, resilient, return, slower, strong, supply, terminated, turn, turnover
Removed: hardware, hiring