Clearwater Analytics (NYSE:CWAN) Hits New 52-Week Low on Disappointing Earnings

Key Points

• Clearwater Analytics shares reached a new **52-week low** of $18.00 during trading, following a disappointing earnings report where the company reported **$0.12 EPS**, missing expectations of **$0.13 EPS**.
• Despite the earnings miss, Clearwater Analytics experienced a **70.4% year-over-year increase** in quarterly revenue, totaling **$181.94 million**, exceeding analysts' expectations of **$174.16 million**.
• Analysts from various brokerages have varying **price targets for Clearwater Analytics**; Goldman Sachs set a **$26.00** target, while JPMorgan Chase has an **$28.00** target, indicating mixed sentiment about the company's future performance.

Clearwater Analytics Holdings, Inc. (NYSE:CWAN - Get Free Report) shares reached a new 52-week low during trading on Thursday following a weaker than expected earnings announcement. The company traded as low as $18.00 and last traded at $18.17, with a volume of 2572090 shares changing hands. The stock had previously closed at $20.42.

The company reported $0.12 earnings per share (EPS) for the quarter, missing the consensus estimate 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 during the quarter, compared to analyst estimates of $174.16 million. During the same period in the previous year, the company earned $0.10 EPS. Clearwater Analytics's revenue was up 70.4% on a year-over-year basis.

Wall Street Analyst Weigh In

Several analysts recently issued reports on CWAN shares. Wells Fargo & Company lowered their price target on Clearwater Analytics from $35.00 to $32.00 and set an "overweight" rating for the company in a report on Tuesday, April 22nd. JPMorgan Chase & Co. assumed coverage on Clearwater Analytics in a research note on Friday, April 25th. They issued an "overweight" rating and a $28.00 target price for the company. The Goldman Sachs Group assumed coverage on shares of Clearwater Analytics in a research report on Monday, May 19th. They issued a "neutral" rating and a $26.00 price objective for the company. Piper Sandler set a $27.00 price objective on shares of Clearwater Analytics and gave the company an "overweight" rating in a research report on Tuesday, June 24th. Finally, Oppenheimer lowered their price objective on shares of Clearwater Analytics from $40.00 to $36.00 and set an "outperform" rating for the company in a research report on Wednesday, June 11th. One equities research analyst has rated the stock with a hold rating and nine have given a buy rating to the company. According to MarketBeat, Clearwater Analytics has an average rating of "Moderate Buy" and an average price target of $31.90.

Insider Activity

In other news, CRO Scott Stanley Erickson sold 4,460 shares of the firm's stock in a transaction that occurred on Monday, June 30th. The shares were sold at an average price of $21.67, for a total transaction of $96,648.20. Following the completion of the sale, the executive owned 15,776 shares of the company's stock, valued at approximately $341,865.92. This trade represents a 22.04% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO James S. Cox sold 18,700 shares of the firm's stock in a transaction that occurred on Tuesday, July 15th. The stock was sold at an average price of $22.50, for a total transaction of $420,750.00. Following the sale, the chief financial officer directly owned 348,964 shares of the company's stock, valued at $7,851,690. The trade was a 5.09% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 258,107 shares of company stock worth $5,844,208 over the last quarter. Corporate insiders own 3.31% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in CWAN. Vanguard Group Inc. raised its stake in Clearwater Analytics by 11.3% during the first quarter. Vanguard Group Inc. now owns 23,246,312 shares of the company's stock valued at $623,001,000 after buying an additional 2,366,715 shares in the last quarter. Wellington Management Group LLP grew its position in shares of Clearwater Analytics by 7.7% in the 1st quarter. Wellington Management Group LLP now owns 6,412,929 shares of the company's stock worth $171,866,000 after acquiring an additional 458,444 shares in the last quarter. Geode Capital Management LLC grew its position in shares of Clearwater Analytics by 22.7% in the 2nd quarter. Geode Capital Management LLC now owns 5,737,241 shares of the company's stock worth $125,833,000 after acquiring an additional 1,060,435 shares in the last quarter. Invesco Ltd. grew its position in shares of Clearwater Analytics by 34.1% in the 1st quarter. Invesco Ltd. now owns 5,706,337 shares of the company's stock worth $152,930,000 after acquiring an additional 1,452,474 shares in the last quarter. Finally, Blair William & Co. IL grew its position in shares of Clearwater Analytics by 53.4% in the 2nd quarter. Blair William & Co. IL now owns 3,888,661 shares of the company's stock worth $85,278,000 after acquiring an additional 1,354,391 shares in the last quarter. 50.10% of the stock is owned by institutional investors and hedge funds.

Clearwater Analytics Trading Up 5.1%

The company has a market cap of $5.59 billion, a price-to-earnings ratio of 12.42, a price-to-earnings-growth ratio of 3.76 and a beta of 0.73. The firm has a 50-day moving average price of $21.89 and a 200 day moving average price of $24.44. The company has a current ratio of 2.02, a quick ratio of 5.09 and a debt-to-equity ratio of 0.44.

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.