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

Key Points

• Short interest jumped 20.3% to 16,955,936 shares as of March 31, equal to about 5.9% of the stock and a days-to-cover ratio of 3.7.
• Heavy insider selling: CEO Sandeep Sahai and Subi Sethi sold large blocks on Feb. 18, with insiders disposing of 780,842 shares over the last 90 days and insider ownership at 3.31%.
• Market/analyst context: CWAN trades near $24.10 with a $7.12B market cap and negative P/E, and carries a consensus "Hold" rating with a $26.17 target.

Clearwater Analytics Holdings, Inc. (NYSE:CWAN - Get Free Report) saw a large growth in short interest in March. As of March 31st, there was short interest totaling 16,955,936 shares, a growth of 20.3% from the March 15th total of 14,088,919 shares. Approximately 5.9% of the company's stock are short sold. Based on an average trading volume of 4,605,352 shares, the days-to-cover ratio is currently 3.7 days.

Clearwater Analytics Stock Performance

Shares of Clearwater Analytics stock traded down $0.01 during trading on Friday, hitting $24.10. 2,196,798 shares of the stock were exchanged, compared to its average volume of 4,348,041. 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 company has a fifty day moving average price of $23.54 and a 200-day moving average price of $22.04. The stock has a market capitalization of $7.12 billion, a price-to-earnings ratio of -172.13, a price-to-earnings-growth ratio of 3.35 and a beta of 0.64. Clearwater Analytics has a 1-year low of $15.73 and a 1-year high of $25.07.

Wall Street Analyst Weigh In

CWAN has been the subject of several analyst reports. Weiss Ratings cut Clearwater Analytics from a "hold (c)" rating to a "sell (d+)" rating in a report on Monday, February 23rd. Warburg Research set a $24.55 price target on Clearwater Analytics in a research report on Monday, December 22nd. 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 note on Tuesday, January 27th. William Blair reaffirmed a "market perform" rating on shares of Clearwater Analytics in a research report on Monday, December 22nd. Finally, UBS Group cut Clearwater Analytics from a "buy" rating to a "neutral" rating and dropped their price objective for the stock from $30.00 to $24.55 in a research note on Monday, January 26th. Three equities research analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $26.17.

Insider Activity at Clearwater Analytics

In other news, insider Subi Sethi sold 76,689 shares of Clearwater Analytics stock in a transaction that occurred on Wednesday, February 18th. The shares were sold at an average price of $23.44, for a total value of $1,797,590.16. Following the sale, the insider directly owned 365,490 shares in the company, valued at $8,567,085.60. This trade represents a 17.34% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Sandeep Sahai sold 233,813 shares of the business's stock in a transaction on Wednesday, February 18th. The stock was sold at an average price of $23.44, for a total transaction of $5,480,576.72. Following the completion of the sale, the chief executive officer directly owned 1,357,138 shares in the company, valued at approximately $31,811,314.72. This represents a 14.70% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 780,842 shares of company stock worth $18,358,880. 3.31% of the stock is currently owned by corporate insiders.

Institutional Trading of Clearwater Analytics

Several institutional investors and hedge funds have recently bought and sold shares of CWAN. AQR Capital Management LLC boosted its stake in shares of Clearwater Analytics by 1,027.1% during the 1st quarter. AQR Capital Management LLC now owns 132,828 shares of the company's stock worth $3,560,000 after acquiring an additional 121,043 shares during the period. Integrated Wealth Concepts LLC bought a new stake in Clearwater Analytics in the 1st quarter valued at $208,000. Woodline Partners LP lifted its holdings in Clearwater Analytics by 75.2% during the 1st quarter. Woodline Partners LP now owns 20,066 shares of the company's stock valued at $538,000 after purchasing an additional 8,613 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in Clearwater Analytics by 1.5% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 459,292 shares of the company's stock valued at $12,309,000 after purchasing an additional 6,826 shares during the last quarter. Finally, M&T Bank Corp boosted its position in Clearwater Analytics by 51.8% during the second quarter. M&T Bank Corp now owns 13,164 shares of the company's stock worth $289,000 after purchasing an additional 4,492 shares during the period. Institutional investors own 50.10% of the company's stock.

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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