Clearwater Analytics (NYSE:CWAN) Earns Neutral Rating from DA Davidson

Key Points

• DA Davidson reaffirmed a neutral rating on Clearwater Analytics and kept a $24.55 price target, implying only about 0.72% upside from the prior close.
• The stock has a mixed analyst backdrop: the consensus rating is Hold with a $26.17 average target, while recent moves included rating downgrades from UBS and Weiss Ratings and cuts from Morgan Stanley and RBC.
• Clearwater Analytics recently reported Q1 earnings in line with estimates at $0.16 per share and revenue of $221.23 million, with revenue jumping 74.4% year over year.

Clearwater Analytics (NYSE:CWAN - Get Free Report)'s stock had its "neutral" rating reaffirmed by DA Davidson in a research note issued to investors on Wednesday,Benzinga reports. They currently have a $24.55 price objective on the stock. DA Davidson's price target would suggest a potential upside of 0.72% from the company's previous close.

A number of other research analysts have also issued reports on CWAN. Morgan Stanley reiterated an "equal weight" rating and issued a $24.55 target price (down from $27.00) on shares of Clearwater Analytics in a report on Tuesday, January 27th. Weiss Ratings lowered Clearwater Analytics from a "hold (c)" rating to a "sell (d+)" rating in a report on Monday, February 23rd. UBS Group lowered Clearwater Analytics from a "buy" rating to a "neutral" rating and decreased their target price for the company from $30.00 to $24.55 in a report on Monday, January 26th. Finally, Royal Bank Of Canada reiterated a "sector perform" rating and issued a $24.55 target price (down from $36.00) on shares of Clearwater Analytics in a report on Wednesday, February 25th. Three investment analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Clearwater Analytics has a consensus rating of "Hold" and a consensus price target of $26.17.

Clearwater Analytics Stock Up 0.0%

NYSE:CWAN traded up $0.01 during midday trading on Wednesday, reaching $24.38. The company had a trading volume of 570,621 shares, compared to its average volume of 7,892,989. The firm has a market capitalization of $7.28 billion, a price-to-earnings ratio of -135.41, a PEG ratio of 3.53 and a beta of 0.61. The stock's fifty day simple moving average is $23.88 and its 200-day simple moving average is $22.94. Clearwater Analytics has a 12-month low of $15.73 and a 12-month high of $25.07. The company has a current ratio of 2.26, a quick ratio of 2.26 and a debt-to-equity ratio of 0.39.

Clearwater Analytics (NYSE:CWAN - Get Free Report) last released its earnings results on Thursday, May 7th. The company reported $0.16 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $0.16. The firm had revenue of $221.23 million during the quarter, compared to analyst estimates of $214.09 million. Clearwater Analytics had a positive return on equity of 3.17% and a negative net margin of 5.88%.Clearwater Analytics's revenue was up 74.4% compared to the same quarter last year. During the same period last year, the business posted $0.13 earnings per share. On average, sell-side analysts anticipate that Clearwater Analytics will post 0.35 earnings per share for the current fiscal year.

Insider Transactions at Clearwater Analytics

In related news, insider Subi Sethi sold 19,858 shares of the stock in a transaction on Tuesday, March 31st. The stock was sold at an average price of $23.80, for a total value of $472,620.40. Following the transaction, the insider owned 388,256 shares of the company's stock, valued at $9,240,492.80. This represents a 4.87% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, CRO Scott Stanley Erickson sold 18,790 shares of the company's stock in a transaction on Tuesday, March 31st. The shares were sold at an average price of $23.80, for a total transaction of $447,202.00. Following the completion of the transaction, the executive owned 155,119 shares of the company's stock, valued at $3,691,832.20. This represents a 10.80% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 194,332 shares of company stock valued at $4,624,562 over the last ninety days. Company insiders own 3.31% of the company's stock.

Hedge Funds Weigh In On Clearwater Analytics

Several large investors have recently bought and sold shares of CWAN. EverSource Wealth Advisors LLC boosted its stake in Clearwater Analytics by 211.1% in the fourth quarter. EverSource Wealth Advisors LLC now owns 1,061 shares of the company's stock valued at $26,000 after acquiring an additional 720 shares in the last quarter. Los Angeles Capital Management LLC acquired a new position in Clearwater Analytics in the fourth quarter valued at $26,000. Essex Investment Management Co. LLC boosted its stake in Clearwater Analytics by 54.9% in the third quarter. Essex Investment Management Co. LLC now owns 1,806 shares of the company's stock valued at $33,000 after acquiring an additional 640 shares in the last quarter. SBI Securities Co. Ltd. boosted its stake in Clearwater Analytics by 627.5% in the fourth quarter. SBI Securities Co. Ltd. now owns 1,375 shares of the company's stock valued at $33,000 after acquiring an additional 1,186 shares in the last quarter. Finally, Caitong International Asset Management Co. Ltd acquired a new position in Clearwater Analytics in the fourth quarter valued at $33,000. Institutional investors and hedge funds own 50.10% of the company's stock.

Clearwater Analytics Company Profile

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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