CLEAR Secure (NYSE:YOU) Shares Down 6.2% - Should You Sell?

Key Points

• CLEAR Secure shares fell 6.2% to about $48.05 on lower-than-average trading volume, while the stock’s average analyst rating remained “Hold” with a consensus price target of $58.57.
• The company exceeded quarterly expectations, reporting $0.49 in adjusted earnings per share versus the $0.40 estimate and $277.76 million in revenue, up 26.6% year over year.
• CLEAR Secure announced a quarterly dividend of $0.15 per share, but recent insider selling totaled nearly $1.36 million; institutional investors nonetheless own 73.8% of the company.

CLEAR Secure, Inc. (NYSE:YOU - Get Free Report) was down 6.2% on Tuesday . The company traded as low as $48.09 and last traded at $48.0460. 805,821 shares traded hands during trading, a decline of 50% from the average daily volume of 1,599,135 shares. The stock had previously closed at $51.21.

Wall Street Analyst Weigh In

YOU has been the topic of a number of recent research reports. DA Davidson lowered their target price on CLEAR Secure from $60.00 to $55.00 and set a "neutral" rating on the stock in a research note on Tuesday, July 28th. Zacks Research cut CLEAR Secure from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 6th. Wall Street Zen raised CLEAR Secure from a "hold" rating to a "buy" rating in a report on Saturday, May 9th. Wells Fargo & Company upped their price objective on CLEAR Secure from $33.00 to $40.00 and gave the stock an "underweight" rating in a research report on Thursday, May 7th. Finally, The Goldman Sachs Group set a $70.00 price objective on shares of CLEAR Secure in a research note on Monday, July 20th. Five analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company has an average rating of "Hold" and a consensus target price of $58.57.

CLEAR Secure Stock Performance

The company has a 50 day moving average of $54.06 and a two-hundred day moving average of $49.75. The stock has a market cap of $6.46 billion, a PE ratio of 32.95 and a beta of 1.06.

CLEAR Secure (NYSE:YOU - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The company reported $0.49 earnings per share for the quarter, topping analysts' consensus estimates of $0.40 by $0.09. The company had revenue of $277.76 million during the quarter, compared to analysts' expectations of $269.71 million. CLEAR Secure had a return on equity of 71.51% and a net margin of 14.78%.CLEAR Secure's quarterly revenue was up 26.6% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.26 EPS. As a group, equities research analysts anticipate that CLEAR Secure, Inc. will post 1.61 EPS for the current year.

CLEAR Secure Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 24th. Stockholders of record on Thursday, September 10th will be paid a dividend of $0.15 per share. This represents a $0.60 annualized dividend and a dividend yield of 1.2%. The ex-dividend date of this dividend is Thursday, September 10th. CLEAR Secure's dividend payout ratio is presently 40.82%.

Insider Activity

In related news, President Michael Z. Barkin sold 11,550 shares of CLEAR Secure stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $56.29, for a total value of $650,149.50. Following the sale, the president owned 22,994 shares of the company's stock, valued at approximately $1,294,332.26. This trade represents a 33.44% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Kyle Mclaughlin sold 8,000 shares of the business's stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $56.20, for a total transaction of $449,600.00. Following the completion of the sale, the executive vice president directly owned 29,519 shares of the company's stock, valued at approximately $1,658,967.80. The trade was a 21.32% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 23,962 shares of company stock worth $1,360,146 in the last quarter. Corporate insiders own 29.70% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of YOU. Durable Capital Partners LP increased its stake in CLEAR Secure by 153.1% during the 2nd quarter. Durable Capital Partners LP now owns 7,490,351 shares of the company's stock worth $207,932,000 after buying an additional 4,531,161 shares in the last quarter. Wedge Capital Management L L P NC purchased a new position in shares of CLEAR Secure in the second quarter valued at approximately $82,542,000. Jacobs Levy Equity Management Inc. boosted its stake in shares of CLEAR Secure by 6,038.7% in the third quarter. Jacobs Levy Equity Management Inc. now owns 1,463,717 shares of the company's stock worth $48,859,000 after acquiring an additional 1,439,873 shares during the last quarter. Squarepoint Ops LLC boosted its stake in shares of CLEAR Secure by 4,573.0% in the second quarter. Squarepoint Ops LLC now owns 929,033 shares of the company's stock worth $25,790,000 after acquiring an additional 909,152 shares during the last quarter. Finally, Bank of New York Mellon Corp purchased a new stake in shares of CLEAR Secure during the second quarter worth approximately $47,722,000. 73.80% of the stock is owned by hedge funds and other institutional investors.

About CLEAR Secure

CLEAR Secure, Inc operates a biometric identity platform designed to expedite identity verification for air travelers and venue guests. The company’s core offering is the CLEAR membership service, which uses fingerprint and iris scans to confirm a member’s identity and provide access to dedicated security lanes at participating airports. Members link government-issued IDs and personal biometric data via the CLEAR app, enabling faster processing through Transportation Security Administration (TSA) checkpoints and select event entrances.

Founded in 2010 by Caryn Seidman‐Becker and Ken Cornick, CLEAR is headquartered in New York City.

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