Clearwater Analytics Holdings, Inc. (NYSE:CWAN) Sees Significant Growth in Short Interest

Key Points

• Short interest jumped 37.5% to 23,317,167 shares as of April 15 (about 8.2% of shares sold short), leaving a short-interest ratio of 5.1 days based on average daily volume.
• Company insiders have been net sellers recently — including the CFO’s sale of 93,930 shares and another insider selling 76,689 shares on Feb. 18 — with insiders offloading 780,842 shares (~$18.36M) over the past 90 days and now owning 3.31% of the stock.
• Large institutional investors have been adding positions (Vanguard, Wellington, Price T. Rowe among the biggest holders) so institutions now own ~50.1%, while analysts’ consensus is a "Hold" with an average price target of $26.17 versus the recent share price near $24 and a high P/E of 127.00.

Clearwater Analytics Holdings, Inc. (NYSE:CWAN - Get Free Report) saw a large growth in short interest in April. As of April 15th, there was short interest totaling 23,317,167 shares, a growth of 37.5% from the March 31st total of 16,955,936 shares. Approximately 8.2% of the shares of the stock are sold short. Based on an average daily volume of 4,535,871 shares, the short-interest ratio is currently 5.1 days.

Clearwater Analytics Price Performance

Shares of CWAN stock traded up $0.03 during trading hours on Tuesday, hitting $24.16. The company's stock had a trading volume of 1,514,527 shares, compared to its average volume of 3,980,708. The company has a current ratio of 1.83, a quick ratio of 1.83 and a debt-to-equity ratio of 0.40. The business has a fifty day moving average of $23.64 and a 200-day moving average of $22.41. Clearwater Analytics has a twelve month low of $15.73 and a twelve month high of $25.07. The stock has a market cap of $7.14 billion, a price-to-earnings ratio of 127.00, a P/E/G ratio of 3.38 and a beta of 0.64.

Insider Buying and Selling at Clearwater Analytics

In related news, CFO James S. Cox sold 93,930 shares of the business's stock in a transaction dated Wednesday, February 18th. The shares were sold at an average price of $23.44, for a total transaction of $2,201,719.20. Following the sale, the chief financial officer owned 474,114 shares of the company's stock, valued at approximately $11,113,232.16. The trade was a 16.54% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, insider Subi Sethi sold 76,689 shares of the company's stock in a transaction dated Wednesday, February 18th. The stock was sold at an average price of $23.44, for a total transaction of $1,797,590.16. Following the transaction, the insider owned 365,490 shares in the company, valued at $8,567,085.60. The trade was a 17.34% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 780,842 shares of company stock worth $18,358,880. Company insiders own 3.31% of the company's stock.

Hedge Funds Weigh In On Clearwater Analytics

Institutional investors have recently made changes to their positions in the stock. Vanguard Group Inc. boosted its stake in shares of Clearwater Analytics by 21.9% during the third quarter. Vanguard Group Inc. now owns 33,261,349 shares of the company's stock valued at $599,370,000 after acquiring an additional 5,967,798 shares during the last quarter. Wellington Management Group LLP lifted its holdings in Clearwater Analytics by 108.7% in the 3rd quarter. Wellington Management Group LLP now owns 17,793,701 shares of the company's stock valued at $320,642,000 after purchasing an additional 9,268,950 shares in the last quarter. Price T Rowe Associates Inc. MD boosted its stake in shares of Clearwater Analytics by 11.9% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 13,715,837 shares of the company's stock worth $330,827,000 after purchasing an additional 1,459,150 shares during the last quarter. Starboard Value LP acquired a new stake in shares of Clearwater Analytics during the 4th quarter worth about $240,212,000. Finally, Wasatch Advisors LP grew its holdings in shares of Clearwater Analytics by 3.0% during the second quarter. Wasatch Advisors LP now owns 9,567,391 shares of the company's stock worth $209,813,000 after buying an additional 274,664 shares in the last quarter. 50.10% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

CWAN has been the topic of several research analyst reports. Weiss Ratings lowered Clearwater Analytics from a "hold (c)" rating to a "sell (d+)" rating in a research note on Monday, February 23rd. DA Davidson reaffirmed a "neutral" rating and set a $24.55 price objective on shares of Clearwater Analytics in a report on Thursday, February 19th. Royal Bank Of Canada reiterated a "sector perform" rating and set a $24.55 target price (down from $36.00) on shares of Clearwater Analytics in a research report on Wednesday, February 25th. Wells Fargo & Company lowered Clearwater Analytics from an "overweight" rating to an "equal weight" rating and lowered their target price for the company from $27.00 to $24.55 in a report on Thursday, January 8th. Finally, Morgan Stanley restated an "equal weight" rating and issued a $24.55 price target (down from $27.00) on shares of Clearwater Analytics in a research report on Tuesday, January 27th. Three equities research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Hold" and an average price target of $26.17.

About Clearwater Analytics

Clearwater Analytics LLC is a global provider of web-based investment portfolio accounting, reporting, and analytics solutions. The company's software-as-a-service platform automates complex processes involved in investment data aggregation, reconciliation, valuation, and regulatory reporting. Serving institutional investors—including insurers, asset managers, corporations, government entities, and asset owners—Clearwater Analytics enables clients to optimize performance visibility, risk management, and operational efficiency.

Founded in 2004 and headquartered in Boise, Idaho, Clearwater Analytics has grown its global footprint with offices across North America, Europe, and the Asia-Pacific region.

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