Clearwater Analytics (NYSE:CWAN) Lowered to "Sell" Rating by Wall Street Zen

Key Points

• Clearwater Analytics has been downgraded from a "hold" to a "sell" rating by Wall Street Zen, highlighting concerns about its stock performance.
• The company reported a revenue increase of 70.4% year-over-year, but missed earnings per share estimates by $0.01 in its latest quarterly results.
• Clearwater Analytics has announced a $100 million stock repurchase plan, indicating that its board believes the stock is undervalued.

Clearwater Analytics (NYSE:CWAN - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a report issued on Saturday.

A number of other brokerages have also weighed in on CWAN. Piper Sandler set a $27.00 price target on shares of Clearwater Analytics and gave the stock an "overweight" rating in a research note on Tuesday, June 24th. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Clearwater Analytics in a research note on Wednesday, October 8th. Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $36.00 price target on shares of Clearwater Analytics in a research note on Wednesday, September 17th. Zacks Research raised shares of Clearwater Analytics from a "strong sell" rating to a "hold" rating in a research note on Thursday, September 4th. Finally, DA Davidson cut their target price on shares of Clearwater Analytics from $36.00 to $34.00 and set a "buy" rating for the company in a research note on Tuesday, August 12th. Nine analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Clearwater Analytics currently has an average rating of "Moderate Buy" and a consensus target price of $32.67.

Clearwater Analytics Trading Down 0.9%

Shares of NYSE:CWAN opened at $17.99 on Friday. The company has a 50 day moving average of $19.07 and a 200-day moving average of $21.29. The firm has a market cap of $5.26 billion, a P/E ratio of 11.31, a P/E/G ratio of 4.59 and a beta of 0.69. Clearwater Analytics has a twelve month low of $17.15 and a twelve month high of $35.71. The company has a current ratio of 2.02, a quick ratio of 2.02 and a debt-to-equity ratio of 0.44.

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

Clearwater Analytics announced that its board has approved a stock repurchase plan on Wednesday, September 3rd that allows the company to buyback $100.00 million in shares. This buyback authorization allows the company to purchase up to 1.7% of its shares through open market purchases. Shares buyback plans are typically an indication that the company's board of directors believes its shares are undervalued.

Insider Buying and Selling at Clearwater Analytics

In other news, CFO James S. Cox sold 11,275 shares of the business's stock in a transaction that occurred on Wednesday, October 15th. The shares were sold at an average price of $17.98, for a total transaction of $202,724.50. Following the sale, the chief financial officer owned 338,983 shares in the company, valued at $6,094,914.34. The trade was a 3.22% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CRO Scott Stanley Erickson sold 4,505 shares of the business's stock in a transaction that occurred on Tuesday, September 30th. The shares were sold at an average price of $17.68, for a total transaction of $79,648.40. Following the sale, the executive owned 19,552 shares in the company, valued at $345,679.36. This represents a 18.73% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 143,602 shares of company stock valued at $2,756,283 over the last three months. 3.31% of the stock is owned by insiders.

Institutional Investors Weigh In On Clearwater Analytics

A number of large investors have recently made changes to their positions in the company. HM Payson & Co. raised its holdings in shares of Clearwater Analytics by 76.2% during the third quarter. HM Payson & Co. now owns 26,600 shares of the company's stock valued at $479,000 after acquiring an additional 11,500 shares during the period. Paradiem LLC acquired a new stake in shares of Clearwater Analytics during the third quarter valued at approximately $800,000. CWM LLC raised its holdings in shares of Clearwater Analytics by 206.3% during the third quarter. CWM LLC now owns 9,395 shares of the company's stock valued at $169,000 after acquiring an additional 6,328 shares during the period. Vontobel Holding Ltd. acquired a new stake in shares of Clearwater Analytics during the third quarter valued at approximately $293,000. Finally, CHICAGO TRUST Co NA raised its holdings in shares of Clearwater Analytics by 34.4% during the third quarter. CHICAGO TRUST Co NA now owns 32,470 shares of the company's stock valued at $585,000 after acquiring an additional 8,315 shares during the period. Institutional investors and hedge funds 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.

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