Clearwater Analytics (NYSE:CWAN) Shares Gap Up – What’s Next?

Clearwater Analytics Holdings, Inc. (NYSE:CWAN)’s stock price gapped up prior to trading on Wednesday . The stock had previously closed at $18.40, but opened at $20.37. Clearwater Analytics shares last traded at $19.8620, with a volume of 4,333,840 shares.

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on CWAN shares. The Goldman Sachs Group upgraded shares of Clearwater Analytics from a “neutral” rating to a “buy” rating and set a $27.00 target price on the stock in a report on Monday, August 11th. Wall Street Zen raised Clearwater Analytics from a “sell” rating to a “hold” rating in a research note on Saturday. DA Davidson restated a “buy” rating and set a $30.00 price objective on shares of Clearwater Analytics in a research report on Tuesday. Wells Fargo & Company dropped their target price on Clearwater Analytics from $32.00 to $27.00 and set an “overweight” rating for the company in a report on Thursday, November 6th. Finally, Royal Bank Of Canada reissued an “outperform” rating and set a $36.00 target price on shares of Clearwater Analytics in a research report on Wednesday, September 17th. Nine equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $30.56.

Clearwater Analytics Stock Up 9.1%

The company has a current ratio of 1.97, a quick ratio of 1.97 and a debt-to-equity ratio of 0.42. The company has a 50-day simple moving average of $18.48 and a 200 day simple moving average of $20.65. The company has a market cap of $5.87 billion, a P/E ratio of 13.13, a P/E/G ratio of 4.57 and a beta of 0.69.

Clearwater Analytics (NYSE:CWAN) last issued its earnings results on Wednesday, November 5th. The company reported $0.14 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.16 by ($0.02). The company had revenue of $205.11 million for the quarter, compared to analysts’ expectations of $203.66 million. Clearwater Analytics had a net margin of 61.28% and a return on equity of 2.77%. The firm’s revenue for the quarter was up 77.1% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.14 earnings per share. Clearwater Analytics has set its FY 2025 guidance at EPS. Q4 2025 guidance at EPS. On average, equities analysts anticipate that Clearwater Analytics Holdings, Inc. will post 0.18 EPS for the current year.

Clearwater Analytics announced that its board has initiated a stock repurchase plan on Wednesday, September 3rd that authorizes the company to repurchase $100.00 million in shares. This repurchase authorization authorizes the company to repurchase up to 1.7% of its shares through open market purchases. Shares repurchase plans are often an indication that the company’s board of directors believes its shares are undervalued.

Insider Activity at Clearwater Analytics

In other news, insider Subi Sethi sold 7,434 shares of the firm’s stock in a transaction that occurred on Tuesday, September 30th. The shares were sold at an average price of $17.68, for a total transaction of $131,433.12. Following the transaction, the insider directly owned 226,980 shares of the company’s stock, valued at approximately $4,013,006.40. This trade represents a 3.17% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CTO Souvik Das sold 10,000 shares of the business’s stock in a transaction that occurred on Wednesday, August 20th. The shares were sold at an average price of $20.00, for a total value of $200,000.00. Following the completion of the sale, the chief technology officer owned 132,549 shares of the company’s stock, valued at $2,650,980. The trade was a 7.02% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 143,602 shares of company stock valued at $2,756,283. 3.31% of the stock is owned by insiders.

Institutional Trading of Clearwater Analytics

Hedge funds have recently added to or reduced their stakes in the business. Versant Capital Management Inc increased its position in Clearwater Analytics by 189.3% during the 3rd quarter. Versant Capital Management Inc now owns 1,565 shares of the company’s stock valued at $28,000 after purchasing an additional 1,024 shares during the period. First Horizon Advisors Inc. boosted its stake in shares of Clearwater Analytics by 278.9% during the second quarter. First Horizon Advisors Inc. now owns 1,523 shares of the company’s stock valued at $33,000 after purchasing an additional 1,121 shares in the last quarter. Essex Investment Management Co. LLC increased its holdings in Clearwater Analytics by 54.9% during the third quarter. Essex Investment Management Co. LLC now owns 1,806 shares of the company’s stock valued at $33,000 after buying an additional 640 shares during the period. Bessemer Group Inc. raised its stake in Clearwater Analytics by 84.6% in the second quarter. Bessemer Group Inc. now owns 1,545 shares of the company’s stock worth $35,000 after buying an additional 708 shares in the last quarter. Finally, Nvwm LLC bought a new position in Clearwater Analytics in the first quarter worth approximately $46,000. 50.10% of the stock is owned by hedge funds and other institutional investors.

Clearwater Analytics Company Profile

Clearwater Analytics Holdings, Inc develops and provides a Software-as-a-Service (SaaS) solution for automated investment data aggregation, reconciliation, accounting, and reporting services to insurers, investment managers, corporations, institutional investors, and government entities in the United States and internationally.