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

Key Points

• Clearwater Analytics reached a new 12-month low, with shares trading at $17.19, marking a decline from previous closing at $17.54.
• Despite recent struggles, analysts remain optimistic, with an average target price of $32.67 and several recognizing the stock as a "Moderate Buy."
• The company has initiated a $100 million stock repurchase plan, indicating confidence from the board that the stock is undervalued.

Clearwater Analytics Holdings, Inc. (NYSE:CWAN - Get Free Report) hit a new 52-week low during mid-day trading on Monday . The stock traded as low as $17.19 and last traded at $17.29, with a volume of 625195 shares traded. The stock had previously closed at $17.54.

Analysts Set New Price Targets

A number of brokerages recently weighed in on CWAN. DA Davidson lowered 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. Royal Bank Of Canada reissued an "outperform" rating and set a $36.00 price objective on shares of Clearwater Analytics in a report on Wednesday, September 17th. Piper Sandler set a $27.00 target price on shares of Clearwater Analytics and gave the company an "overweight" rating in a research report on Tuesday, June 24th. Zacks Research upgraded Clearwater Analytics from a "strong sell" rating to a "hold" rating in a report on Thursday, September 4th. Finally, Oppenheimer decreased their target price on Clearwater Analytics from $40.00 to $36.00 and set an "outperform" rating for the company in a research report on Wednesday, June 11th. Nine investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Clearwater Analytics currently has an average rating of "Moderate Buy" and an average target price of $32.67.

Clearwater Analytics Stock Down 0.3%

The stock's fifty day moving average price is $19.57 and its 200-day moving average price is $21.84. The company has a quick ratio of 2.02, a current ratio of 2.02 and a debt-to-equity ratio of 0.44. The company has a market capitalization of $5.12 billion, a price-to-earnings ratio of 11.00, a P/E/G ratio of 4.44 and a beta of 0.69.

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

Clearwater Analytics announced that its Board of Directors has initiated 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 buy up to 1.7% of its shares through open market purchases. Shares buyback plans are generally a sign that the company's board of directors believes its stock is undervalued.

Insider Activity at Clearwater Analytics

In other Clearwater Analytics news, CTO Souvik Das sold 10,000 shares of the stock in a transaction on Monday, September 8th. The stock was sold at an average price of $20.57, for a total transaction of $205,700.00. Following the transaction, the chief technology officer owned 121,549 shares in the company, valued at $2,500,262.93. This trade represents a 7.60% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Sandeep Sahai sold 50,000 shares of Clearwater Analytics stock in a transaction on Monday, July 14th. The stock was sold at an average price of $22.15, for a total value of $1,107,500.00. Following the sale, the chief executive officer directly owned 895,663 shares of the company's stock, valued at $19,838,935.45. This represents a 5.29% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 219,727 shares of company stock valued at $4,502,559 in the last ninety days. Company insiders own 3.31% of the company's stock.

Hedge Funds Weigh In On Clearwater Analytics

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. First Horizon Advisors Inc. lifted its position in Clearwater Analytics by 278.9% during the second quarter. First Horizon Advisors Inc. now owns 1,523 shares of the company's stock worth $33,000 after purchasing an additional 1,121 shares during the period. Bessemer Group Inc. increased its stake in shares of Clearwater Analytics by 84.6% in the 2nd quarter. Bessemer Group Inc. now owns 1,545 shares of the company's stock valued at $35,000 after purchasing an additional 708 shares during the last quarter. Nvwm LLC acquired a new position in shares of Clearwater Analytics during the 1st quarter worth $46,000. Quarry LP lifted its position in shares of Clearwater Analytics by 979.4% during the 1st quarter. Quarry LP now owns 2,094 shares of the company's stock worth $56,000 after buying an additional 1,900 shares during the last quarter. Finally, CWM LLC lifted its stake in shares of Clearwater Analytics by 714.6% in the 1st quarter. CWM LLC now owns 3,071 shares of the company's stock valued at $82,000 after acquiring an additional 2,694 shares during the last quarter. 50.10% of the stock is owned by institutional investors and hedge funds.

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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