Clearwater Analytics (NYSE:CWAN) Board of Directors Initiates Share Repurchase Program

Key Points

• Clearwater Analytics has initiated a stock buyback program, planning to repurchase up to $100 million, which is approximately 1.7% of its shares.
• The company's stock recently traded at $20.14, reflecting a slight decrease of 0.3% on the day, with a market capitalization of $5.89 billion.
• Despite reporting a quarterly revenue increase of 70.4% year-over-year, Clearwater missed earnings estimates, reporting $0.12 EPS compared to the expected $0.13.

Clearwater Analytics (NYSE:CWAN - Get Free Report) declared that its Board of Directors has initiated a stock buyback program on Wednesday, September 3rd, RTT News reports. The company plans to buyback $100.00 million in shares. This buyback authorization allows the company to repurchase up to 1.7% of its stock through open market purchases. Stock buyback programs are typically an indication that the company's management believes its stock is undervalued.

Clearwater Analytics Stock Down 0.3%

NYSE CWAN traded down $0.05 on Wednesday, reaching $20.14. The company had a trading volume of 4,238,070 shares, compared to its average volume of 5,087,173. The firm has a market capitalization of $5.89 billion, a price-to-earnings ratio of 12.67, a price-to-earnings-growth ratio of 4.86 and a beta of 0.73. The company has a debt-to-equity ratio of 0.44, a quick ratio of 2.02 and a current ratio of 2.02. Clearwater Analytics has a 1-year low of $17.98 and a 1-year high of $35.71. The company's fifty day moving average is $20.89 and its 200-day moving average is $23.40.

Clearwater Analytics (NYSE:CWAN - Get Free Report) last posted its quarterly earnings data on Wednesday, August 6th. The company reported $0.12 EPS for the quarter, missing analysts' consensus estimates of $0.13 by ($0.01). Clearwater Analytics had a return on equity of 3.23% and a net margin of 73.74%.The business had revenue of $181.94 million for the quarter, compared to analyst estimates of $174.16 million. During the same quarter in the prior year, the company earned $0.10 earnings per share. The company's quarterly revenue was up 70.4% on a year-over-year basis. On average, research analysts forecast that Clearwater Analytics will post 0.18 earnings per share for the current fiscal year.

Analyst Ratings Changes

CWAN has been the topic of a number of research reports. The Goldman Sachs Group raised shares of Clearwater Analytics from a "neutral" rating to a "buy" rating and set a $27.00 price target on the stock in a research note on Monday, August 11th. DA Davidson decreased their price target on shares of Clearwater Analytics from $36.00 to $34.00 and set a "buy" rating for the company in a report on Tuesday, August 12th. Oppenheimer reduced their target price on shares of Clearwater Analytics from $40.00 to $36.00 and set an "outperform" rating for the company in a research note on Wednesday, June 11th. Finally, Piper Sandler set a $27.00 price objective on Clearwater Analytics and gave the company an "overweight" rating in a research note on Tuesday, June 24th. Nine equities research analysts have rated the stock with a Buy rating, Based on data from MarketBeat, the stock presently has an average rating of "Buy" and a consensus target price of $32.67.

Insider Activity at Clearwater Analytics

In related news, CFO James S. Cox sold 11,275 shares of the firm's stock in a transaction dated Friday, August 15th. The shares were sold at an average price of $19.42, for a total value of $218,960.50. Following the completion of the sale, the chief financial officer directly owned 343,964 shares in the company, valued at approximately $6,679,780.88. This trade represents a 3.17% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CEO Sandeep Sahai sold 46,962 shares of the firm's stock in a transaction dated Friday, August 22nd. The shares were sold at an average price of $20.12, for a total transaction of $944,875.44. Following the completion of the sale, the chief executive officer owned 895,663 shares of the company's stock, valued at $18,020,739.56. This trade represents a 4.98% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 266,748 shares of company stock worth $5,755,414. Insiders own 3.31% of the company's stock.

About Clearwater Analytics

Clearwater Analytics Holdings, Inc develops and provides a Software-as-a-Service (SaaS) solution for automated investment data aggregation, reconciliation, accounting, and reporting services to insurers, investment managers, corporations, institutional investors, and government entities in the United States and internationally.

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