Fred Alger Management LLC Trims Stock Position in Clearwater Analytics Holdings, Inc. $CWAN

Key Points

• Fred Alger Management LLC reduced its stake in Clearwater Analytics by 32.1%, owning 1,677,636 shares after selling 791,592 shares during the first quarter.
• Clearwater Analytics reported earnings of $0.12 per share, falling short of the consensus estimate, but its revenue increased by 70.4% year-over-year to $181.94 million.
• The company approved a $100 million stock buyback plan, which suggests confidence from management that the stock is undervalued.

Fred Alger Management LLC reduced its holdings in shares of Clearwater Analytics Holdings, Inc. (NYSE:CWAN - Free Report) by 32.1% during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 1,677,636 shares of the company's stock after selling 791,592 shares during the quarter. Fred Alger Management LLC owned 0.59% of Clearwater Analytics worth $44,961,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other institutional investors also recently bought and sold shares of CWAN. Nvwm LLC bought a new position in Clearwater Analytics in the first quarter valued at about $46,000. Quarry LP boosted its stake in Clearwater Analytics by 979.4% in the 1st quarter. Quarry LP now owns 2,094 shares of the company's stock worth $56,000 after purchasing an additional 1,900 shares during the period. CWM LLC boosted its stake in Clearwater Analytics by 714.6% in the 1st quarter. CWM LLC now owns 3,071 shares of the company's stock worth $82,000 after purchasing an additional 2,694 shares during the period. Portside Wealth Group LLC purchased a new position in Clearwater Analytics during the 1st quarter valued at approximately $206,000. Finally, Integrated Wealth Concepts LLC purchased a new position in Clearwater Analytics during the 1st quarter valued at approximately $208,000. Institutional investors own 50.10% of the company's stock.

Clearwater Analytics Price Performance

NYSE CWAN traded down $0.29 during trading hours on Friday, reaching $19.61. The company's stock had a trading volume of 3,070,687 shares, compared to its average volume of 3,829,677. Clearwater Analytics Holdings, Inc. has a 1-year low of $17.98 and a 1-year high of $35.71. The company's 50-day moving average is $20.60 and its two-hundred day moving average is $22.92. 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 market capitalization of $5.73 billion, a price-to-earnings ratio of 12.33, a P/E/G ratio of 5.04 and a beta of 0.73.

Clearwater Analytics (NYSE:CWAN - Get Free Report) last posted its quarterly earnings results on Wednesday, August 6th. The company reported $0.12 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.13 by ($0.01). The company had revenue of $181.94 million during 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%. Clearwater Analytics's revenue for the quarter was up 70.4% on a year-over-year basis. During the same quarter last year, the company earned $0.10 earnings per share. On average, equities analysts predict that Clearwater Analytics Holdings, Inc. will post 0.18 EPS for the current year.

Clearwater Analytics announced that its board has initiated a share buyback plan on Wednesday, September 3rd that authorizes the company to buyback $100.00 million in shares. This buyback authorization authorizes the company to repurchase up to 1.7% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's management believes its shares are undervalued.

Insider Activity

In other news, CEO Sandeep Sahai sold 46,962 shares of the stock in a transaction on Friday, August 22nd. The stock was sold at an average price of $20.12, for a total value of $944,875.44. Following the sale, the chief executive officer directly owned 895,663 shares in the company, valued at approximately $18,020,739.56. This trade represents a 4.98% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CTO Souvik Das sold 10,000 shares of the stock in a transaction on Monday, September 8th. The shares were sold at an average price of $20.57, for a total value of $205,700.00. Following the completion of the transaction, the chief technology officer directly owned 121,549 shares in the company, valued at $2,500,262.93. This trade represents a 7.60% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 226,748 shares of company stock worth $4,848,614. Corporate insiders own 3.31% of the company's stock.

Analysts Set New Price Targets

CWAN has been the subject of several analyst reports. The Goldman Sachs Group raised Clearwater Analytics from a "neutral" rating to a "buy" rating and set a $27.00 price objective for the company in a research note on Monday, August 11th. 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. Oppenheimer decreased their target price 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. Piper Sandler set a $27.00 price target on Clearwater Analytics and gave the company an "overweight" rating in a report on Tuesday, June 24th. Finally, Zacks Research upgraded Clearwater Analytics from a "strong sell" rating to a "hold" rating in a report on Thursday, September 4th. Nine investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $32.67.

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.