Clearwater Analytics (NYSE:CWAN) Releases Earnings Results

Key Points

• Quarterly results: EPS of $0.16 met estimates and revenue of $221.23M beat expectations and rose 74.4% YoY, but the company remains unprofitable with a -5.37% net margin despite a 3.02% ROE.
• Market and analyst view: Shares traded around $24.31 (market cap ~$7.18B) with a negative P/E, and analysts mostly rate the stock "Hold" with an average price target of about $26.17 after several target cuts.
• Insider activity: Insiders have sold roughly 780,842 shares (~$18.36M) in the last 90 days (including the CFO and CRO), while insiders currently own 3.31% of the stock.

Clearwater Analytics (NYSE:CWAN - Get Free Report) posted its quarterly earnings results on Thursday. The company reported $0.16 earnings per share for the quarter, hitting the consensus estimate of $0.16, FiscalAI reports. Clearwater Analytics had a positive return on equity of 3.02% and a negative net margin of 5.37%.The firm had revenue of $221.23 million during the quarter, compared to analysts' expectations of $214.09 million. During the same quarter in the previous year, the business earned $0.13 earnings per share. The company's revenue was up 74.4% on a year-over-year basis.

Clearwater Analytics Stock Performance

Shares of NYSE:CWAN traded up $0.04 during midday trading on Thursday, hitting $24.31. The company had a trading volume of 7,004,688 shares, compared to its average volume of 3,297,688. Clearwater Analytics has a 12-month low of $15.73 and a 12-month high of $25.07. The company has a fifty day moving average of $23.74 and a two-hundred day moving average of $22.63. The company has a market cap of $7.18 billion, a price-to-earnings ratio of -173.59, a PEG ratio of 3.40 and a beta of 0.61. The company has a debt-to-equity ratio of 0.40, a current ratio of 1.83 and a quick ratio of 1.83.

Insider Buying and Selling at Clearwater Analytics

In related news, CFO James S. Cox sold 18,700 shares of Clearwater Analytics stock in a transaction on Wednesday, April 15th. The shares were sold at an average price of $24.07, for a total transaction of $450,109.00. Following the transaction, the chief financial officer owned 480,419 shares in the company, valued at approximately $11,563,685.33. The trade was a 3.75% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CRO Scott Stanley Erickson sold 18,790 shares of the stock in a transaction on Tuesday, March 31st. The stock was sold at an average price of $23.80, for a total value of $447,202.00. Following the completion of the sale, the executive owned 155,119 shares of the company's stock, valued at $3,691,832.20. The trade was a 10.80% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 780,842 shares of company stock valued at $18,358,880 in the last ninety days. 3.31% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Clearwater Analytics

A number of hedge funds have recently made changes to their positions in the business. Los Angeles Capital Management LLC purchased a new position in shares of Clearwater Analytics in the fourth quarter worth $26,000. Caitong International Asset Management Co. Ltd bought a new stake in Clearwater Analytics in the 4th quarter valued at $33,000. Danske Bank A S bought a new stake in Clearwater Analytics in the 3rd quarter valued at $36,000. Global Retirement Partners LLC boosted its holdings in shares of Clearwater Analytics by 8,927.3% during the 4th quarter. Global Retirement Partners LLC now owns 1,986 shares of the company's stock valued at $48,000 after purchasing an additional 1,964 shares during the last quarter. Finally, Essex Investment Management Co. LLC grew its position in shares of Clearwater Analytics by 27.2% during the fourth quarter. Essex Investment Management Co. LLC now owns 2,298 shares of the company's stock valued at $55,000 after purchasing an additional 492 shares in the last quarter. Institutional investors own 50.10% of the company's stock.

Analysts Set New Price Targets

Several equities analysts have issued reports on the stock. Royal Bank Of Canada restated a "sector perform" rating and set a $24.55 target price (down from $36.00) on shares of Clearwater Analytics in a research note on Wednesday, February 25th. Morgan Stanley restated an "equal weight" rating and set a $24.55 price objective (down from $27.00) on shares of Clearwater Analytics in a research report on Tuesday, January 27th. Wells Fargo & Company downgraded shares of Clearwater Analytics from an "overweight" rating to an "equal weight" rating and cut their target price for the stock from $27.00 to $24.55 in a research report on Thursday, January 8th. UBS Group lowered shares of Clearwater Analytics from a "buy" rating to a "neutral" rating and decreased their target price for the company from $30.00 to $24.55 in a research note on Monday, January 26th. Finally, DA Davidson restated a "neutral" rating and issued a $24.55 price target on shares of Clearwater Analytics in a research note on Thursday, February 19th. Three analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of "Hold" and an average price target of $26.17.

Clearwater Analytics Company Profile

Clearwater Analytics LLC is a global provider of web-based investment portfolio accounting, reporting, and analytics solutions. The company's software-as-a-service platform automates complex processes involved in investment data aggregation, reconciliation, valuation, and regulatory reporting. Serving institutional investors—including insurers, asset managers, corporations, government entities, and asset owners—Clearwater Analytics enables clients to optimize performance visibility, risk management, and operational efficiency.

Founded in 2004 and headquartered in Boise, Idaho, Clearwater Analytics has grown its global footprint with offices across North America, Europe, and the Asia-Pacific region.

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