Clearwater Analytics (NYSE:CWAN) Upgraded by Zacks Research to "Hold" Rating

Key Points

• Clearwater Analytics was upgraded by Zacks Research from a "strong sell" to a "hold" rating, reflecting a positive shift in analyst sentiment.
• The company's Board of Directors initiated a stock repurchase program allowing for the repurchase of up to $100 million in shares, indicating confidence in the stock's value.
• Clearwater Analytics reported a revenue increase of 70.4% year-over-year, although it missed earnings per share estimates by $0.01 in its latest quarter.

Clearwater Analytics (NYSE:CWAN - Get Free Report) was upgraded by equities research analysts at Zacks Research from a "strong sell" rating to a "hold" rating in a research report issued to clients and investors on Thursday,Zacks.com reports.

A number of other research analysts also recently commented on the stock. Oppenheimer cut their target price on shares of Clearwater Analytics from $40.00 to $36.00 and set an "outperform" rating on the stock in a research report on Wednesday, June 11th. The Goldman Sachs Group raised shares of Clearwater Analytics from a "neutral" rating to a "buy" rating and set a $27.00 target price on the stock in a research report on Monday, August 11th. Piper Sandler set a $27.00 price target on Clearwater Analytics and gave the stock an "overweight" rating in a research report on Tuesday, June 24th. Finally, DA Davidson reduced their price target 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. Nine research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat.com, Clearwater Analytics has a consensus rating of "Moderate Buy" and an average price target of $32.67.

Clearwater Analytics Trading Up 2.9%

Shares of NYSE CWAN opened at $20.75 on Thursday. The company has a quick ratio of 2.02, a current ratio of 2.02 and a debt-to-equity ratio of 0.44. The business has a fifty day simple moving average of $20.82 and a two-hundred day simple moving average of $23.30. The firm has a market cap of $6.07 billion, a PE ratio of 13.05, a price-to-earnings-growth ratio of 4.80 and a beta of 0.73. Clearwater Analytics has a twelve month low of $17.98 and a twelve month high of $35.71.

Clearwater Analytics (NYSE:CWAN - Get Free Report) last posted its earnings results on Wednesday, August 6th. The company reported $0.12 EPS for the quarter, missing analysts' consensus estimates of $0.13 by ($0.01). The business had revenue of $181.94 million for the quarter, compared to analysts' expectations of $174.16 million. Clearwater Analytics had a net margin of 73.74% and a return on equity of 3.23%. The company's revenue for the quarter was up 70.4% on a year-over-year basis. During the same period last year, the business posted $0.10 EPS. Analysts expect that Clearwater Analytics will post 0.18 earnings per share for the current fiscal year.

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

Insider Transactions at Clearwater Analytics

In other news, CEO Sandeep Sahai sold 50,000 shares of the firm's stock in a transaction dated 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 transaction, the chief executive officer directly owned 895,663 shares in the company, valued at $19,838,935.45. This trade represents a 5.29% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CFO James S. Cox sold 18,700 shares of the firm's stock in a transaction dated Tuesday, July 15th. The stock was sold at an average price of $22.50, for a total value of $420,750.00. Following the completion of the transaction, the chief financial officer owned 348,964 shares of the company's stock, valued at approximately $7,851,690. The trade was a 5.09% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 266,748 shares of company stock valued at $5,755,414. 3.31% of the stock is owned by company insiders.

Hedge Funds Weigh In On Clearwater Analytics

Several hedge funds and other institutional investors have recently made changes to their positions in CWAN. Osaic Holdings Inc. increased its holdings in shares of Clearwater Analytics by 819.6% in the second 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 during the last quarter. Cim LLC increased its stake in Clearwater Analytics by 8.0% during the second quarter. Cim LLC now owns 65,627 shares of the company's stock worth $1,439,000 after acquiring an additional 4,850 shares during the last quarter. Hudson Bay Capital Management LP acquired a new stake in Clearwater Analytics during the second quarter worth $744,000. Ashford Capital Management Inc. increased its stake in Clearwater Analytics by 63.9% during the second quarter. Ashford Capital Management Inc. now owns 915,444 shares of the company's stock worth $20,076,000 after acquiring an additional 357,035 shares during the last quarter. Finally, FORA Capital LLC acquired a new stake in Clearwater Analytics during the second quarter worth $1,272,000. 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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