Clearwater Analytics (NYSE:CWAN) Receives Sell (D+) Rating from Weiss Ratings

Key Points

• Clearwater Analytics has been given a "sell (D+)" rating by Weiss Ratings, indicating a negative outlook from this analytical perspective.
• Analysts' target prices have varied, with DA Davidson recently lowering its target from $36.00 to $34.00 while Goldman Sachs raised its rating to "buy" with a $27.00 target.
• The company announced a $100 million share repurchase plan, suggesting the board believes the stock is undervalued despite recent insider selling from the CEO and CFO.

Clearwater Analytics (NYSE:CWAN - Get Free Report)'s stock had its "sell (d+)" rating reissued by analysts at Weiss Ratings in a research report issued on Wednesday,Weiss Ratings reports.

Several other analysts have also recently commented on CWAN. DA Davidson decreased their target price on Clearwater Analytics from $36.00 to $34.00 and set a "buy" rating for the company in a research report on Tuesday, August 12th. The Goldman Sachs Group raised Clearwater Analytics from a "neutral" rating to a "buy" rating and set a $27.00 price objective on the stock in a report on Monday, August 11th. Zacks Research upgraded shares of 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 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. Finally, Royal Bank Of Canada restated an "outperform" rating and issued a $36.00 price objective on shares of Clearwater Analytics in a research report on Wednesday, September 17th. Nine analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $32.67.

Clearwater Analytics Price Performance

Shares of NYSE CWAN traded up $0.44 during trading on Wednesday, reaching $18.11. The company had a trading volume of 3,157,511 shares, compared to its average volume of 4,384,753. Clearwater Analytics has a twelve month low of $17.15 and a twelve month high of $35.71. The stock has a market capitalization of $5.30 billion, a PE ratio of 11.39, a price-to-earnings-growth ratio of 4.47 and a beta of 0.69. The stock has a 50-day moving average price of $19.37 and a two-hundred day moving average price of $21.72. 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 released its 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 business had revenue of $181.94 million during the quarter, compared to analyst estimates of $174.16 million. During the same quarter in the previous year, the company posted $0.10 earnings per share. The business's revenue for the quarter was up 70.4% compared to the same quarter last year. As a group, sell-side analysts predict that Clearwater Analytics will post 0.18 earnings per share for the current year.

Clearwater Analytics announced that its Board of Directors has authorized a share repurchase plan on Wednesday, September 3rd that authorizes the company to repurchase $100.00 million in outstanding shares. This repurchase authorization authorizes the company to buy up to 1.7% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company's board of directors believes its stock is undervalued.

Insider Buying and Selling at Clearwater Analytics

In other news, CEO Sandeep Sahai sold 16,592 shares of the company's stock in a transaction dated Tuesday, September 30th. The shares were sold at an average price of $17.68, for a total transaction of $293,346.56. Following the transaction, the chief executive officer owned 913,600 shares in the company, valued at approximately $16,152,448. This represents a 1.78% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO James S. Cox sold 5,919 shares of the 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 $104,647.92. Following the transaction, the chief financial officer directly owned 343,983 shares of the company's stock, valued at $6,081,619.44. This represents a 1.69% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 219,727 shares of company stock valued at $4,502,559. 3.31% of the stock is owned by corporate insiders.

Institutional Trading of Clearwater Analytics

Several large investors have recently added to or reduced their stakes in the business. Hilltop National Bank grew its holdings in Clearwater Analytics by 12.6% during the 3rd quarter. Hilltop National Bank now owns 5,533 shares of the company's stock worth $100,000 after acquiring an additional 619 shares in the last quarter. Osaic Holdings Inc. increased its holdings in shares of Clearwater Analytics by 819.6% during the 2nd quarter. Osaic Holdings Inc. now owns 7,256 shares of the company's stock valued at $160,000 after purchasing an additional 6,467 shares in the last quarter. Cim LLC grew its stake in Clearwater Analytics by 8.0% in the 2nd quarter. Cim LLC now owns 65,627 shares of the company's stock valued at $1,439,000 after acquiring an additional 4,850 shares during the period. Hudson Bay Capital Management LP acquired a new stake in Clearwater Analytics in the 2nd quarter valued at $744,000. Finally, Ashford Capital Management Inc. boosted its stake in Clearwater Analytics by 63.9% during the 2nd quarter. Ashford Capital Management Inc. now owns 915,444 shares of the company's stock worth $20,076,000 after purchasing an additional 357,035 shares during the last quarter. 50.10% of the stock is currently owned by institutional investors.

Clearwater Analytics Company Profile

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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