Clearwater Analytics (NYSE:CWAN) Shares Gap Up - Time to Buy?

Key Points

• Clearwater Analytics shares gapped up from a previous closing price of $18.45, opening at $19.42 and last trading at $19.34 with substantial volume.
• Several analysts have positive outlooks on Clearwater Analytics, with Piper Sandler and Goldman Sachs setting target prices of $27.00 and $28.00, respectively, reflecting a consensus rating of "Buy".
• Despite missing earnings expectations by $0.01, Clearwater Analytics reported a significant year-over-year revenue increase of 70.4%, earning $181.94 million during the latest quarter.

Clearwater Analytics Holdings, Inc. (NYSE:CWAN - Get Free Report)'s stock price gapped up prior to trading on Tuesday . The stock had previously closed at $18.45, but opened at $19.42. Clearwater Analytics shares last traded at $19.34, with a volume of 106,367 shares trading hands.

Analyst Upgrades and Downgrades

CWAN has been the topic of a number of recent analyst reports. 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 research note on Monday. Wells Fargo & Company dropped their price target on Clearwater Analytics from $35.00 to $32.00 and set an "overweight" rating on the stock in a research note on Tuesday, April 22nd. DA Davidson dropped their price target on Clearwater Analytics from $36.00 to $34.00 and set a "buy" rating on the stock in a research note on Tuesday. JPMorgan Chase & Co. began coverage on Clearwater Analytics in a research note on Friday, April 25th. They set an "overweight" rating and a $28.00 price target on the stock. Finally, Oppenheimer dropped their price target on Clearwater Analytics from $40.00 to $36.00 and set an "outperform" rating on the stock in a research note on Wednesday, June 11th. Ten analysts have rated the stock with a buy rating, According to data from MarketBeat.com, the stock has a consensus rating of "Buy" and a consensus price target of $32.20.

Clearwater Analytics Trading Down 0.7%

The company has a market capitalization of $5.63 billion, a P/E ratio of 12.10, a price-to-earnings-growth ratio of 4.56 and a beta of 0.73. The company has a debt-to-equity ratio of 0.44, a current ratio of 2.02 and a quick ratio of 2.02. The firm has a fifty day moving average price of $21.48 and a 200-day moving average price of $24.12.

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

Insider Transactions at Clearwater Analytics

In related news, insider Subi Sethi sold 7,358 shares of the stock in a transaction on Monday, June 30th. The stock was sold at an average price of $21.67, for a total value of $159,447.86. Following the sale, the insider owned 218,788 shares in the company, valued at approximately $4,741,135.96. This trade represents a 3.25% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CEO Sandeep Sahai sold 50,000 shares of the 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 completion of the sale, the chief executive officer owned 895,663 shares in the company, valued at $19,838,935.45. This trade represents a 5.29% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 208,107 shares of company stock valued at $4,629,708. 3.31% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Clearwater Analytics

A number of large investors have recently added to or reduced their stakes in the company. Apollon Wealth Management LLC raised its position in Clearwater Analytics by 3.9% during the first quarter. Apollon Wealth Management LLC now owns 12,341 shares of the company's stock valued at $331,000 after purchasing an additional 459 shares in the last quarter. Huntleigh Advisors Inc. lifted its stake in shares of Clearwater Analytics by 1.9% in the 1st quarter. Huntleigh Advisors Inc. now owns 32,211 shares of the company's stock valued at $863,000 after acquiring an additional 595 shares during the last quarter. Redwood Investments LLC lifted its stake in shares of Clearwater Analytics by 0.8% in the 1st quarter. Redwood Investments LLC now owns 74,651 shares of the company's stock valued at $2,001,000 after acquiring an additional 608 shares during the last quarter. Abacus FCF Advisors LLC lifted its stake in shares of Clearwater Analytics by 2.8% in the 1st quarter. Abacus FCF Advisors LLC now owns 25,140 shares of the company's stock valued at $674,000 after acquiring an additional 682 shares during the last quarter. Finally, Bessemer Group Inc. lifted 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 acquiring an additional 708 shares during the last quarter. 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.