Clearwater Analytics (NYSE:CWAN) Sets New 12-Month Low - What's Next?

Key Points

• Clearwater Analytics shares have reached a new 12-month low, trading at $17.75, following a decline from a previous close of $18.20.
• Several analysts have revised their price targets for Clearwater Analytics, with an average target now at $32.67 and a general rating of "Moderate Buy."
• The company recently announced a $100 million share buyback program, indicating the board's belief that its shares are currently undervalued.

Clearwater Analytics Holdings, Inc. (NYSE:CWAN - Get Free Report)'s stock price hit a new 52-week low on Tuesday . The stock traded as low as $17.75 and last traded at $17.81, with a volume of 1073166 shares trading hands. The stock had previously closed at $18.20.

Analysts Set New Price Targets

Several research analysts have commented on the stock. 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. Piper Sandler set a $27.00 target price on shares of Clearwater Analytics and gave the stock an "overweight" rating in a research note on Tuesday, June 24th. Zacks Research upgraded Clearwater Analytics from a "strong sell" rating to a "hold" rating in a research note on Thursday, September 4th. Oppenheimer lowered their price objective 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. Finally, Royal Bank Of Canada reissued an "outperform" rating and set a $36.00 target price on shares of Clearwater Analytics in a research report on Wednesday, September 17th. Nine analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to MarketBeat.com, Clearwater Analytics presently has an average rating of "Moderate Buy" and an average price target of $32.67.

Clearwater Analytics Stock Performance

The firm's fifty day moving average price is $19.85 and its 200-day moving average price is $22.08. The company has a current ratio of 2.02, a quick ratio of 2.02 and a debt-to-equity ratio of 0.44. The firm has a market cap of $5.27 billion, a price-to-earnings ratio of 11.32, a PEG ratio of 4.58 and a beta of 0.73.

Clearwater Analytics (NYSE:CWAN - Get Free Report) last released 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 business had revenue of $181.94 million during the quarter, compared to analysts' expectations of $174.16 million. During the same quarter last year, the company earned $0.10 EPS. The firm's revenue for the quarter was up 70.4% compared to the same quarter last year. Analysts expect that Clearwater Analytics Holdings, Inc. will post 0.18 earnings per share for the current year.

Clearwater Analytics declared that its Board of Directors has approved a share buyback program on Wednesday, September 3rd that permits the company to buyback $100.00 million in shares. This buyback authorization permits the company to buy up to 1.7% of its stock through open market purchases. Stock buyback programs are generally an indication that the company's board believes its shares are undervalued.

Insiders Place Their Bets

In other Clearwater Analytics news, CFO James S. Cox sold 18,700 shares of the company's stock in a transaction on Tuesday, July 15th. The shares were sold at an average price of $22.50, for a total transaction of $420,750.00. Following the completion of the transaction, the chief financial officer owned 348,964 shares in the company, valued at approximately $7,851,690. This represents a 5.09% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Sandeep Sahai sold 50,000 shares of the stock in a transaction dated Monday, July 14th. The shares were sold at an average price of $22.15, for a total transaction of $1,107,500.00. Following the completion of the transaction, the chief executive officer 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. In the last quarter, insiders sold 179,950 shares of company stock worth $3,799,302. 3.31% of the stock is owned by insiders.

Hedge Funds Weigh In On Clearwater Analytics

A number of large investors have recently made changes to their positions in CWAN. Zevenbergen Capital Investments LLC grew its stake in Clearwater Analytics by 48.6% in the 1st quarter. Zevenbergen Capital Investments LLC now owns 909,429 shares of the company's stock valued at $24,373,000 after acquiring an additional 297,414 shares during the last quarter. Wealth Enhancement Advisory Services LLC acquired a new stake in Clearwater Analytics in the 1st quarter valued at about $314,000. Vanguard Group Inc. grew 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 acquiring an additional 2,366,715 shares during the last quarter. Riverbridge Partners LLC acquired a new stake in shares of Clearwater Analytics during the 2nd quarter worth about $35,313,000. Finally, Yorktown Management & Research Co Inc acquired a new stake in shares of Clearwater Analytics during the 1st quarter worth about $409,000. Hedge funds and other 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.

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