Clearwater Analytics (NYSE:CWAN) Reaches New 1-Year Low - What's Next?

Key Points

• Clearwater Analytics' stock price fell to a new 12-month low of $20.01, with recent trading showing a slight recovery at $20.11 and a trading volume of 6,122 shares.
• Analysts have adjusted their price targets for Clearwater Analytics, with Wells Fargo lowering it from $35.00 to $32.00, while nine analysts maintain buy ratings for the company.
• The company reported earnings of $0.13 per share for the last quarter, surpassing estimates, and experienced a year-over-year revenue growth of 23.5%, totaling $126.86 million.

Shares of Clearwater Analytics Holdings, Inc. (NYSE:CWAN - Get Free Report) hit a new 52-week low during mid-day trading on Friday . The company traded as low as $20.01 and last traded at $20.11, with a volume of 6122 shares changing hands. The stock had previously closed at $20.26.

Analyst Ratings Changes

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

Clearwater Analytics Stock Performance

The stock's 50-day simple moving average is $22.13 and its 200-day simple moving average is $24.67. The stock has a market cap of $5.74 billion, a price-to-earnings ratio of 119.12, a price-to-earnings-growth ratio of 4.05 and a beta of 0.73. The company has a current ratio of 5.09, a quick ratio of 5.09 and a debt-to-equity ratio of 0.04.

Clearwater Analytics (NYSE:CWAN - Get Free Report) last announced its quarterly earnings data on Wednesday, April 30th. The company reported $0.13 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.12 by $0.01. The firm had revenue of $126.86 million for the quarter, compared to the consensus estimate of $125.11 million. Clearwater Analytics had a net margin of 90.18% and a return on equity of 5.22%. The business's revenue for the quarter was up 23.5% on a year-over-year basis. During the same period in the prior year, the company posted $0.10 earnings per share. Analysts forecast that Clearwater Analytics Holdings, Inc. will post 0.18 earnings per share for the current fiscal year.

Insider Activity

In other news, Director Kathleen A. Corbet sold 12,634 shares of Clearwater Analytics stock in a transaction on Tuesday, May 20th. The stock was sold at an average price of $23.66, for a total value of $298,920.44. Following the transaction, the director owned 14,498 shares in the company, valued at approximately $343,022.68. This trade represents a 46.56% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Subi Sethi sold 7,358 shares of Clearwater Analytics stock in a transaction on Monday, June 30th. The shares were sold at an average price of $21.67, for a total value of $159,447.86. Following the completion of the transaction, the insider owned 218,788 shares in the company, valued at approximately $4,741,135.96. The trade was a 3.25% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 258,107 shares of company stock valued at $5,844,208. 3.31% of the stock is owned by insiders.

Hedge Funds Weigh In On Clearwater Analytics

Several hedge funds and other institutional investors have recently modified their holdings of the business. Vanguard Group Inc. lifted its stake in Clearwater Analytics by 11.3% in the 1st quarter. Vanguard Group Inc. now owns 23,246,312 shares of the company's stock valued at $623,001,000 after purchasing an additional 2,366,715 shares during the last quarter. Fuller & Thaler Asset Management Inc. bought a new position in Clearwater Analytics in the 1st quarter valued at approximately $56,648,000. Nuveen LLC bought a new position in Clearwater Analytics in the 1st quarter valued at approximately $53,894,000. Franklin Resources Inc. bought a new position in Clearwater Analytics in the 4th quarter valued at approximately $44,510,000. Finally, Riverbridge Partners LLC bought a new position in Clearwater Analytics in the 2nd quarter valued at approximately $35,313,000. 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.