Clarivate (NYSE:CLVT) Issues FY 2025 Earnings Guidance

Key Points

• Clarivate updated its FY 2025 earnings guidance, projecting earnings per share (EPS) between 0.600-0.700 compared to a consensus estimate of 0.648, along with revenue guidance of $2.3 billion-$2.4 billion against a consensus of $2.4 billion.
• Several analysts recently downgraded Clarivate's stock rating to "hold," with an average price target set at $4.83, amidst a mix of sell and hold ratings from market analysts.
• Insider trading activity was noted, with an insider selling 100,000 shares for $453,000, resulting in a 7.29% reduction in their position.

Clarivate (NYSE:CLVT - Get Free Report) issued an update on its FY 2025 earnings guidance on Wednesday morning. The company provided earnings per share (EPS) guidance of 0.600-0.700 for the period, compared to the consensus estimate of 0.648. The company issued revenue guidance of $2.3 billion-$2.4 billion, compared to the consensus revenue estimate of $2.4 billion.

Clarivate Price Performance

NYSE:CLVT traded down $0.23 during trading hours on Friday, reaching $3.62. 6,273,920 shares of the company's stock were exchanged, compared to its average volume of 4,100,375. The company has a market capitalization of $2.43 billion, a P/E ratio of -5.84 and a beta of 1.40. Clarivate has a 12 month low of $3.04 and a 12 month high of $7.15. The company has a quick ratio of 0.88, a current ratio of 0.91 and a debt-to-equity ratio of 0.90. The business's 50-day simple moving average is $4.27 and its two-hundred day simple moving average is $4.30.

Clarivate (NYSE:CLVT - Get Free Report) last issued its earnings results on Wednesday, July 30th. The company reported $0.18 earnings per share for the quarter, hitting analysts' consensus estimates of $0.18. The firm had revenue of $621.40 million during the quarter, compared to analysts' expectations of $587.17 million. Clarivate had a negative net margin of 17.33% and a positive return on equity of 8.65%. The firm's revenue for the quarter was down 4.4% compared to the same quarter last year. During the same period last year, the firm posted $0.20 earnings per share. Sell-side analysts expect that Clarivate will post 0.63 EPS for the current fiscal year.

Wall Street Analyst Weigh In

CLVT has been the subject of several research analyst reports. Jefferies Financial Group initiated coverage on shares of Clarivate in a research report on Friday, July 18th. They issued a "hold" rating and a $4.50 price target for the company. Wall Street Zen downgraded shares of Clarivate from a "buy" rating to a "hold" rating in a research report on Saturday, June 21st. One analyst has rated the stock with a sell rating and four have given a hold rating to the company. Based on data from MarketBeat.com, Clarivate has a consensus rating of "Hold" and a consensus price target of $4.83.

Insider Activity at Clarivate

In related news, insider James Gordon Samson sold 100,000 shares of the company's stock in a transaction that occurred on Tuesday, July 1st. The shares were sold at an average price of $4.53, for a total value of $453,000.00. Following the completion of the sale, the insider owned 1,271,103 shares in the company, valued at approximately $5,758,096.59. This represents a 7.29% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Company insiders own 23.18% of the company's stock.

Institutional Investors Weigh In On Clarivate

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in CLVT. Millennium Management LLC lifted its position in Clarivate by 1,420.4% in the 1st quarter. Millennium Management LLC now owns 1,188,978 shares of the company's stock worth $4,673,000 after buying an additional 1,110,774 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in shares of Clarivate by 13.1% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,243,683 shares of the company's stock worth $4,888,000 after purchasing an additional 144,462 shares during the last quarter. AQR Capital Management LLC increased its stake in shares of Clarivate by 37.0% during the 1st quarter. AQR Capital Management LLC now owns 451,872 shares of the company's stock worth $1,749,000 after purchasing an additional 122,099 shares during the last quarter. Goldman Sachs Group Inc. increased its stake in shares of Clarivate by 15.5% during the 1st quarter. Goldman Sachs Group Inc. now owns 616,250 shares of the company's stock worth $2,422,000 after purchasing an additional 82,768 shares during the last quarter. Finally, Royal Bank of Canada increased its stake in shares of Clarivate by 96.2% during the 1st quarter. Royal Bank of Canada now owns 63,630 shares of the company's stock worth $250,000 after purchasing an additional 31,197 shares during the last quarter. Hedge funds and other institutional investors own 85.72% of the company's stock.

About Clarivate

Clarivate Plc operates as an information services provider in the Americas, the Middle East, Africa, Europe, and the Asia Pacific. It operates through three segments: Academia & Government, Life Sciences & Healthcare, and Intellectual Property. The company offers Web of Science and InCites, that analyzes and explores the academic research landscape and manages research information; ProQuest One and Ebook Central that provides comprehensive content collections to institutions in a cost-effective manner; and Alma and Polaris, that manages academic resources and services, connect users, and support research publications.