CLEAR Secure (NYSE:YOU) Trading Up 12.2% Following Earnings Beat

Key Points

• CLEAR Secure's shares climbed 12.2% following a strong earnings report, with earnings per share at $0.26, exceeding expectations of $0.23.
• The company announced a quarterly dividend of $0.125 per share, translating to an annualized dividend of $0.50 and a yield of 1.5%.
• Currently, CLEAR Secure holds a market capitalization of $4.50 billion and has received a "Moderate Buy" rating from analysts, with a consensus target price of $32.40.

CLEAR Secure, Inc. (NYSE:YOU - Get Free Report)'s stock price shot up 12.2% during mid-day trading on Tuesday after the company announced better than expected quarterly earnings. The stock traded as high as $34.12 and last traded at $33.64. 526,429 shares changed hands during trading, a decline of 73% from the average session volume of 1,939,822 shares. The stock had previously closed at $29.99.

The company reported $0.26 earnings per share for the quarter, beating analysts' consensus estimates of $0.23 by $0.03. CLEAR Secure had a return on equity of 122.69% and a net margin of 21.17%. The business had revenue of $219.47 million for the quarter, compared to the consensus estimate of $214.90 million. During the same quarter last year, the business posted $0.34 earnings per share. The company's revenue for the quarter was up 17.6% on a year-over-year basis.

CLEAR Secure Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 17th. Stockholders of record on Wednesday, September 10th will be issued a $0.125 dividend. The ex-dividend date is Wednesday, September 10th. This represents a $0.50 annualized dividend and a dividend yield of 1.6%. CLEAR Secure's payout ratio is currently 31.25%.

Analyst Ratings Changes

Several research analysts have recently commented on the company. Wells Fargo & Company lifted their price objective on CLEAR Secure from $23.00 to $25.00 and gave the stock an "underweight" rating in a report on Wednesday. Wall Street Zen downgraded CLEAR Secure from a "buy" rating to a "hold" rating in a report on Sunday, July 13th. Stifel Nicolaus lifted their price objective on CLEAR Secure from $26.00 to $28.00 and gave the stock a "hold" rating in a report on Tuesday, July 29th. Telsey Advisory Group lifted their price objective on CLEAR Secure from $32.00 to $37.00 and gave the stock an "outperform" rating in a report on Wednesday. Finally, The Goldman Sachs Group boosted their price target on CLEAR Secure from $33.00 to $37.00 and gave the company a "buy" rating in a report on Wednesday. One investment analyst has rated the stock with a sell rating, three have issued a hold rating and three have assigned a buy rating to the company's stock. According to MarketBeat, CLEAR Secure has an average rating of "Hold" and a consensus price target of $33.00.

Insiders Place Their Bets

In related news, Director Kenneth L. Cornick sold 315,591 shares of the business's stock in a transaction dated Wednesday, May 14th. The stock was sold at an average price of $25.02, for a total transaction of $7,896,086.82. Following the transaction, the director owned 64,935 shares in the company, valued at $1,624,673.70. The trade was a 82.94% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, President Michael Z. Barkin sold 20,000 shares of CLEAR Secure stock in a transaction that occurred on Tuesday, August 5th. The shares were sold at an average price of $32.81, for a total value of $656,200.00. Following the sale, the president directly owned 12,725 shares in the company, valued at approximately $417,507.25. The trade was a 61.12% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 990,964 shares of company stock worth $25,212,499 in the last quarter. 39.73% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On CLEAR Secure

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Geneos Wealth Management Inc. increased its stake in CLEAR Secure by 329.5% in the 1st quarter. Geneos Wealth Management Inc. now owns 975 shares of the company's stock worth $25,000 after buying an additional 748 shares in the last quarter. Harbor Investment Advisory LLC purchased a new stake in CLEAR Secure in the 1st quarter worth $27,000. Advisors Asset Management Inc. purchased a new stake in CLEAR Secure in the 1st quarter worth $28,000. Fifth Third Bancorp increased its stake in CLEAR Secure by 217.0% in the 1st quarter. Fifth Third Bancorp now owns 1,116 shares of the company's stock worth $29,000 after buying an additional 764 shares in the last quarter. Finally, First Horizon Advisors Inc. increased its stake in CLEAR Secure by 72.0% in the 1st quarter. First Horizon Advisors Inc. now owns 1,474 shares of the company's stock worth $38,000 after buying an additional 617 shares in the last quarter. 73.80% of the stock is owned by institutional investors.

CLEAR Secure Trading Up 0.1%

The firm has a market cap of $4.25 billion, a PE ratio of 19.98 and a beta of 1.25. The stock has a 50 day simple moving average of $28.10 and a 200-day simple moving average of $25.96.

CLEAR Secure Company Profile

Clear Secure, Inc operates a secure identity platform under the CLEAR brand name primarily in the United States. Its secure identity platform is a multi-layered infrastructure consisting of front-end, including enrollment, verification, and linking, as well as back-end. The company also offers CLEAR Plus, a consumer aviation subscription service, which enables access to predictable entry lanes in airport security checkpoints, as well as access to broader network; and CLEAR mobile app, which is used to enroll new members and improve the experience for existing members.