Insider Selling: Clearwater Analytics (NYSE:CWAN) CFO Sells 11,275 Shares of Stock

Key Points

• James Cox, CFO of Clearwater Analytics, sold 11,275 shares at an average price of $19.51, reducing his ownership by 3.22% to a total of 338,964 shares.
• Clearwater Analytics has initiated a $100 million share buyback program, which suggests that the company believes its stock is undervalued.
• Despite reporting a revenue increase of 70.4% year-over-year, the company missed earnings estimates, reporting $0.12 earnings per share against an expected $0.13.

Clearwater Analytics Holdings, Inc. (NYSE:CWAN - Get Free Report) CFO James S. Cox sold 11,275 shares of Clearwater Analytics stock in a transaction on Monday, September 15th. The shares were sold at an average price of $19.51, for a total value of $219,975.25. Following the transaction, the chief financial officer owned 338,964 shares in the company, valued at $6,613,187.64. This represents a 3.22% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website.

Clearwater Analytics Stock Down 5.7%

CWAN traded down $1.11 during trading on Friday, reaching $18.20. 10,346,199 shares of the stock traded hands, compared to its average volume of 4,191,679. The stock has a market cap of $5.32 billion, a price-to-earnings ratio of 11.45, a price-to-earnings-growth ratio of 4.62 and a beta of 0.73. Clearwater Analytics Holdings, Inc. has a fifty-two week low of $17.98 and a fifty-two week high of $35.71. 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 stock's 50-day simple moving average is $20.28 and its two-hundred day simple moving average is $22.47.

Clearwater Analytics (NYSE:CWAN - Get Free Report) last released its quarterly earnings data 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 firm had revenue of $181.94 million for the quarter, compared to analyst estimates 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 period in the previous year, the business posted $0.10 EPS. As a group, equities research analysts expect that Clearwater Analytics Holdings, Inc. will post 0.18 EPS for the current year.

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

Hedge Funds Weigh In On Clearwater Analytics

A number of institutional investors have recently made changes to their positions in the business. Osaic Holdings Inc. increased its stake 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 worth $160,000 after purchasing an additional 6,467 shares during the period. Cim LLC increased its stake in shares of Clearwater Analytics by 8.0% in the second quarter. Cim LLC now owns 65,627 shares of the company's stock worth $1,439,000 after purchasing an additional 4,850 shares during the period. Hudson Bay Capital Management LP bought a new position in shares of Clearwater Analytics in the second quarter worth about $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 valued at $20,076,000 after acquiring an additional 357,035 shares during the period. Finally, FORA Capital LLC bought a new position in Clearwater Analytics during the second quarter valued at about $1,272,000. 50.10% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

A number of analysts have weighed in on the company. Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $36.00 price target on shares of Clearwater Analytics in a research report on Wednesday. Oppenheimer reduced their price target 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. 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. Zacks Research raised Clearwater Analytics from a "strong sell" rating to a "hold" rating in a research report on Thursday, September 4th. Finally, 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. Nine investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $32.67.

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.