Clarivate (NYSE:CLVT) Shares Gap Up on Insider Buying Activity

Key Points

• Clarivate shares jumped 8.7%, opening at $1.98 versus a prior close of $1.89, after director Kenneth L. Cornick purchased 900,000 shares across two transactions totaling approximately $1.67 million.
• Analyst sentiment remains cautious: Clarivate has a consensus “Reduce” rating, with one Buy, four Holds, and three Sells, and a consensus price target of $3.02.
• The company slightly exceeded quarterly EPS estimates at $0.19 but reported revenue of $587.3 million, down 5.5% year over year and below expectations of $589.73 million; institutional investors own 85.72% of the stock.

Clarivate PLC (NYSE:CLVT - Get Free Report) shares gapped up prior to trading on Tuesday after an insider bought additional shares in the company. The stock had previously closed at $1.89, but opened at $1.98. Clarivate shares last traded at $2.0450, with a volume of 311,662 shares trading hands.

Specifically, Director Kenneth L. Cornick purchased 250,000 shares of Clarivate stock in a transaction that occurred on Friday, August 7th. The shares were bought at an average price of $1.85 per share, for a total transaction of $462,500.00. Following the completion of the transaction, the director directly owned 2,000,000 shares of the company's stock, valued at $3,700,000. This represents a 14.29% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Kenneth L. Cornick bought 650,000 shares of the company's stock in a transaction dated Thursday, August 6th. The shares were acquired at an average price of $1.86 per share, for a total transaction of $1,209,000.00. Following the acquisition, the director owned 1,750,000 shares in the company, valued at approximately $3,255,000. This represents a 59.09% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure.

Analyst Ratings Changes

Several research firms recently commented on CLVT. Wall Street Zen lowered shares of Clarivate from a "buy" rating to a "hold" rating in a research note on Saturday, August 1st. Barclays reduced their price objective on Clarivate from $2.50 to $2.00 and set an "underweight" rating for the company in a research report on Thursday, July 30th. The Goldman Sachs Group cut their target price on Clarivate from $2.90 to $2.60 and set a "neutral" rating on the stock in a research note on Thursday, July 30th. Weiss Ratings reiterated a "sell (e+)" rating on shares of Clarivate in a research note on Wednesday, June 24th. Finally, Stifel Nicolaus decreased their target price on shares of Clarivate from $6.00 to $5.00 and set a "buy" rating for the company in a report on Thursday, July 30th. One investment analyst has rated the stock with a Buy rating, four have assigned a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Reduce" and a consensus price target of $3.02.

Clarivate Trading Up 8.7%

The stock's fifty day simple moving average is $2.19 and its 200 day simple moving average is $2.36. The firm has a market capitalization of $1.31 billion, a PE ratio of -3.91 and a beta of 1.40. The company has a quick ratio of 0.85, a current ratio of 0.85 and a debt-to-equity ratio of 0.93.

Clarivate (NYSE:CLVT - Get Free Report) last announced its earnings results on Wednesday, July 29th. The company reported $0.19 EPS for the quarter, topping analysts' consensus estimates of $0.18 by $0.01. Clarivate had a positive return on equity of 9.15% and a negative net margin of 13.84%.The company had revenue of $587.30 million for the quarter, compared to analysts' expectations of $589.73 million. During the same period last year, the firm earned $0.18 EPS. Clarivate's revenue for the quarter was down 5.5% compared to the same quarter last year. On average, sell-side analysts predict that Clarivate PLC will post 0.67 earnings per share for the current year.

Institutional Trading of Clarivate

Hedge funds and other institutional investors have recently modified their holdings of the company. FIL Ltd increased its stake in Clarivate by 2.3% in the 4th quarter. FIL Ltd now owns 25,266,152 shares of the company's stock worth $84,389,000 after buying an additional 567,170 shares in the last quarter. Dimensional Fund Advisors LP grew its position in shares of Clarivate by 3.3% during the third quarter. Dimensional Fund Advisors LP now owns 21,768,783 shares of the company's stock worth $83,373,000 after purchasing an additional 696,903 shares in the last quarter. Atairos Partners GP Inc. raised its stake in Clarivate by 195.3% during the 4th quarter. Atairos Partners GP Inc. now owns 10,232,667 shares of the company's stock valued at $34,177,000 after purchasing an additional 6,767,667 shares during the period. Invenomic Capital Management LP lifted its holdings in Clarivate by 3.8% in the 4th quarter. Invenomic Capital Management LP now owns 9,029,414 shares of the company's stock worth $30,158,000 after purchasing an additional 326,369 shares in the last quarter. Finally, Vanguard Group Inc. boosted its stake in Clarivate by 9.3% in the 3rd quarter. Vanguard Group Inc. now owns 8,922,585 shares of the company's stock worth $34,173,000 after purchasing an additional 756,722 shares during the period. 85.72% of the stock is owned by hedge funds and other institutional investors.

About Clarivate

Clarivate plc is a global information and analytics company that provides insights and workflow solutions to accelerate the pace of innovation. The company delivers proprietary data, analytics, and expertise to support research and development in the life sciences, intellectual property management, academic institutions, government agencies, and corporations. Its core offerings include citation and patent databases, drug pipeline analytics, trademark research tools, regulatory compliance solutions, and market intelligence platforms.

Originally part of Thomson Reuters' Intellectual Property & Science division, Clarivate was established as an independent entity in 2016 following a spin-off transaction.

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