Clearwater Analytics (NYSE:CWAN) Hits New 12-Month Low - Here's What Happened

Key Points

• Clearwater Analytics shares have hit a new 52-week low of $17.86, with the stock last trading at $18.32 amid a high trading volume of 1,077,427 shares.
• Analysts have mixed ratings on Clearwater Analytics, with Oppenheimer reducing their price target from $40.00 to $36.00, while The Goldman Sachs Group upgraded it to a "buy" rating with a target of $27.00.
• The company has authorized a $100 million stock buyback plan, which typically indicates that the board believes its shares are undervalued.

Clearwater Analytics Holdings, Inc. (NYSE:CWAN - Get Free Report)'s share price hit a new 52-week low during mid-day trading on Monday . The stock traded as low as $17.86 and last traded at $18.32, with a volume of 1077427 shares. The stock had previously closed at $18.23.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on CWAN shares. DA Davidson dropped their target price on Clearwater Analytics from $36.00 to $34.00 and set a "buy" rating on the stock in a research report on Tuesday, August 12th. Zacks Research raised Clearwater Analytics from a "strong sell" rating to a "hold" rating in a research report on Thursday, September 4th. Oppenheimer dropped their target price on Clearwater Analytics from $40.00 to $36.00 and set an "outperform" rating on the stock in a research report on Wednesday, June 11th. The Goldman Sachs Group raised Clearwater Analytics from a "neutral" rating to a "buy" rating and set a $27.00 target price on the stock in a research report on Monday, August 11th. Finally, Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $36.00 target price on shares of Clearwater Analytics in a research report on Wednesday, September 17th. Nine equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $32.67.

Clearwater Analytics Stock Performance

The company has a current ratio of 2.02, a quick ratio of 2.02 and a debt-to-equity ratio of 0.44. The firm has a market cap of $5.35 billion, a price-to-earnings ratio of 11.53, a price-to-earnings-growth ratio of 4.62 and a beta of 0.73. The stock has a fifty day moving average price of $20.21 and a 200 day moving average price of $22.40.

Clearwater Analytics (NYSE:CWAN - Get Free Report) last released its earnings results on Wednesday, August 6th. The company reported $0.12 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.13 by ($0.01). The business had revenue of $181.94 million during the quarter, compared to analyst estimates of $174.16 million. Clearwater Analytics had a net margin of 73.74% and a return on equity of 3.23%. The business's quarterly revenue was up 70.4% compared to the same quarter last year. During the same period last year, the business earned $0.10 EPS. As a group, analysts predict that Clearwater Analytics Holdings, Inc. will post 0.18 earnings per share for the current year.

Clearwater Analytics announced that its board has initiated a share buyback plan on Wednesday, September 3rd that allows the company to repurchase $100.00 million in outstanding shares. This repurchase authorization allows the company to reacquire up to 1.7% of its shares through open market purchases. Shares repurchase plans are often a sign that the company's leadership believes its stock is undervalued.

Insiders Place Their Bets

In other Clearwater Analytics news, CEO Sandeep Sahai sold 46,962 shares of the firm's stock in a transaction that occurred on Friday, August 22nd. The stock was sold at an average price of $20.12, for a total value of $944,875.44. Following the completion of the sale, the chief executive officer owned 895,663 shares in the company, valued at approximately $18,020,739.56. This trade represents a 4.98% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CTO Souvik Das sold 10,000 shares of the firm's stock in a transaction that occurred on Monday, September 8th. The stock was sold at an average price of $20.57, for a total value of $205,700.00. Following the completion of the sale, the chief technology officer owned 121,549 shares of the company's stock, valued at $2,500,262.93. This represents a 7.60% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 219,323 shares of company stock worth $4,652,514. 3.31% of the stock is currently owned by company insiders.

Institutional Trading of Clearwater Analytics

A number of hedge funds have recently modified their holdings of the company. Apollon Wealth Management LLC lifted its position in shares of Clearwater Analytics by 3.9% in the 1st quarter. Apollon Wealth Management LLC now owns 12,341 shares of the company's stock worth $331,000 after acquiring an additional 459 shares during the period. Huntleigh Advisors Inc. lifted its position in shares of Clearwater Analytics by 1.9% in the 1st quarter. Huntleigh Advisors Inc. now owns 32,211 shares of the company's stock worth $863,000 after acquiring an additional 595 shares during the period. Redwood Investments LLC lifted its position in shares of Clearwater Analytics by 0.8% during the 1st quarter. Redwood Investments LLC now owns 74,651 shares of the company's stock worth $2,001,000 after buying an additional 608 shares during the period. Abacus FCF Advisors LLC lifted its position in shares of Clearwater Analytics by 2.8% during the 1st quarter. Abacus FCF Advisors LLC now owns 25,140 shares of the company's stock worth $674,000 after buying an additional 682 shares during the period. Finally, Bessemer Group Inc. lifted its position in shares of Clearwater Analytics by 84.6% during the 2nd quarter. Bessemer Group Inc. now owns 1,545 shares of the company's stock worth $35,000 after buying an additional 708 shares during the period. Institutional investors own 50.10% 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.