Clarivate (NYSE:CLVT) Hits New 12-Month Low - What's Next?

Key Points

• Clarivate shares fell to a new 52-week low of $1.47, well below their 50-day and 200-day moving averages, amid weak market performance.
• Analyst sentiment is negative overall: the stock has an average “Reduce” rating and a consensus price target of $3.02, with recent downgrades from several firms.
• Clarivate slightly exceeded quarterly EPS expectations, but revenue declined 5.5% year over year and the company reported a negative net margin. Insider activity was mixed, with one director selling 2.49 million shares while another bought 250,000 shares.

Clarivate PLC (NYSE:CLVT - Get Free Report)'s share price hit a new 52-week low during mid-day trading on Monday. The stock traded as low as $1.47 and last traded at $1.4650, with a volume of 5159 shares traded. The stock had previously closed at $1.48.

Wall Street Analyst Weigh In

Several brokerages have weighed in on CLVT. Wall Street Zen cut Clarivate from a "buy" rating to a "hold" rating in a research note on Saturday, August 1st. Barclays cut their price target on shares of Clarivate from $2.50 to $2.00 and set an "underweight" rating on the stock in a report on Thursday, July 30th. The Goldman Sachs Group dropped their price target on Clarivate from $2.90 to $2.60 and set a "neutral" rating on the stock in a report on Thursday, July 30th. Weiss Ratings reissued a "sell (e+)" rating on shares of Clarivate in a research report on Monday, September 21st. Finally, Stifel Nicolaus lowered their target price on Clarivate from $6.00 to $5.00 and set a "buy" rating on the stock in a research note on Thursday, July 30th. One research analyst has rated the stock with a Buy rating, three have issued a Hold rating and three have assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Reduce" and an average price target of $3.02.

Clarivate Price Performance

The business has a 50 day simple moving average of $1.94 and a two-hundred day simple moving average of $2.24. The firm has a market capitalization of $930.71 million, a P/E ratio of -2.80 and a beta of 1.40. The company has a debt-to-equity ratio of 0.93, a quick ratio of 0.85 and a current ratio of 0.85.

Clarivate (NYSE:CLVT - Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The company reported $0.19 EPS for the quarter, topping analysts' consensus estimates of $0.18 by $0.01. Clarivate had a negative net margin of 13.84% and a positive return on equity of 9.15%. The business had revenue of $587.30 million during the quarter, compared to analysts' expectations of $589.73 million. During the same quarter in the previous year, the company earned $0.18 EPS. The business's quarterly revenue was down 5.5% compared to the same quarter last year. On average, sell-side analysts expect that Clarivate PLC will post 0.67 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director Andrew Snyder sold 2,489,618 shares of Clarivate stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $1.94, for a total value of $4,829,858.92. Following the transaction, the director owned 3,856,597 shares in the company, valued at approximately $7,481,798.18. The trade was a 39.23% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Kenneth L. Cornick bought 250,000 shares of the company's stock in a transaction that occurred on Friday, August 7th. The shares were bought at an average price of $1.85 per share, with a total value of $462,500.00. Following the completion of the acquisition, the director directly owned 2,000,000 shares in the company, valued at $3,700,000. This trade represents a 14.29% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. 22.88% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Clarivate

A number of hedge funds have recently modified their holdings of the company. KBC Group NV bought a new position in shares of Clarivate during the first quarter valued at $4,118,000. Empowered Funds LLC grew its position in Clarivate by 418.6% during the 1st quarter. Empowered Funds LLC now owns 2,015,829 shares of the company's stock valued at $5,100,000 after purchasing an additional 1,627,159 shares during the last quarter. Arrowstreet Capital Limited Partnership bought a new stake in Clarivate during the 1st quarter valued at about $3,342,000. CenterBook Partners LP increased its stake in Clarivate by 81.8% during the 4th quarter. CenterBook Partners LP now owns 1,369,972 shares of the company's stock valued at $4,576,000 after purchasing an additional 616,490 shares in the last quarter. Finally, Amundi raised its holdings in Clarivate by 1,670.2% in the first quarter. Amundi now owns 558,992 shares of the company's stock worth $1,414,000 after buying an additional 527,414 shares during the last quarter. Hedge funds and other institutional investors own 85.72% of the company's stock.

Clarivate Company Profile

Clarivate Plc NYSE: CLVT is a global information services and analytics company that provides data, software and research tools to organizations in academia, government, life sciences, intellectual property and other knowledge-intensive industries.

Its products and services include Web of Science research and citation databases, Derwent Innovation and other intellectual property solutions, life sciences analytics, and workflow and library-management platforms. Through its ProQuest and Ex Libris offerings, Clarivate also supports academic institutions with research content, library systems, discovery tools and digital resources.

Clarivate serves customers internationally, including universities, research organizations, corporations, publishers, government agencies and patent professionals.

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