William Blair Lowers TWFG Q3 Earnings Forecast Amid Analyst Concerns

Investment analysts at William Blair have revised their earnings expectations for TWFG, Inc. (NASDAQ: TWFG), predicting a decrease in the company’s earnings per share (EPS) for the third quarter of 2025. In a research note distributed to investors on October 14, 2023, analyst A. Klauber lowered the EPS estimate from $0.17 to $0.16. This adjustment reflects growing apprehensions about the company’s financial performance.

The consensus estimate for TWFG’s full-year earnings stands at $0.57 per share. Other financial institutions have also weighed in on the company’s stock. On October 8, UBS Group reduced its price target for TWFG from $42.00 to $39.00 while maintaining a “buy” rating. Similarly, Piper Sandler cut their target price from $38.00 to $32.00, assigning an “overweight” rating.

On October 7, Morgan Stanley lowered its price target from $32.00 to $30.00 with an “equal weight” rating, while JPMorgan Chase & Co. adjusted their target from $35.00 to $30.00, also maintaining a “neutral” rating. Overall, analysts have provided a range of ratings for TWFG: four analysts suggest a “buy” rating, three recommend holding, and one advises selling. Data from MarketBeat.com indicates a current consensus rating of “hold” with an average price target of $33.29.

TWFG’s stock opened at $25.76 on Thursday, reflecting a modest increase of 0.1%. The company has a 50-day moving average price of $26.75 and a 200-day moving average price of $30.76. Financial metrics indicate a current ratio of 105.86, a quick ratio of 105.86, and a debt-to-equity ratio of 0.01. TWFG boasts a market capitalization of $1.44 billion, with a price-to-earnings ratio of 62.83 and a beta of 0.31. The stock has fluctuated between a 12-month low of $23.52 and a high of $36.85.

The company recently reported its quarterly earnings data on March 3, 2023, revealing an EPS of $0.15 and revenue of $54.64 million for that quarter. TWFG has indicated upcoming guidance for Q4 2024 and full-year 2024 earnings.

In addition to analyst activity, institutional investors and hedge funds have made significant adjustments to their holdings in TWFG. Victory Capital Management Inc. established a new position in the company during the first quarter, investing approximately $6.78 million. TD Asset Management Inc. increased its stake by 25.2%, acquiring an additional 10,666 shares. Other notable investors include Blair William & Co. IL, which purchased a new stake worth around $969,000, and Vanguard Group Inc., which raised its holdings slightly by 0.7%, now owning 621,151 shares valued at $19.2 million.

TWFG, Inc. operates as an independent distributor of various personal and commercial insurance products across the United States. Its offerings encompass a wide range of insurance types, including auto, home, life, and commercial liability, among others. The company’s diverse portfolio positions it uniquely within the insurance market.

Overall, the recent revisions to TWFG’s earnings outlook and the mixed responses from analysts reflect a cautious sentiment surrounding the company’s near-term financial health. Investors will be closely monitoring upcoming earnings reports and market conditions that may further influence TWFG’s performance.