Clarivate (NYSE:CLVT) Shares Up 7.8% - Should You Buy?

Key Points

• Clarivate shares rose 7.8% to about $1.74, though trading volume was roughly 80% below the stock’s average daily volume.
• Analyst sentiment remains cautious: the stock has a consensus rating of “Reduce”, with seven analysts split among one Buy, three Holds, and three Sells.
• Clarivate slightly beat quarterly EPS estimates, but revenue declined 5.5% year over year and the company posted a negative net margin. Insider activity was mixed, with one director selling $4.8 million in shares while another purchased $1.2 million.

Clarivate PLC (NYSE:CLVT - Get Free Report)'s stock price was up 7.8% during mid-day trading on Thursday. The company traded as high as $1.72 and last traded at $1.7350. Approximately 1,215,125 shares were traded during trading, a decline of 80% from the average daily volume of 6,109,948 shares. The stock had previously closed at $1.61.

Wall Street Analysts Forecast Growth

CLVT has been the topic of a number of recent analyst reports. Wall Street Zen cut shares of Clarivate from a "buy" rating to a "hold" rating in a research report on Saturday, August 1st. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Clarivate in a research note on Monday, September 21st. Barclays dropped their price target on shares of Clarivate from $2.50 to $2.00 and set an "underweight" rating for the company in a research report on Thursday, July 30th. Citigroup reduced their price target on shares of Clarivate from $2.80 to $2.50 and set a "neutral" rating on the stock in a research note on Thursday, July 30th. Finally, The Goldman Sachs Group reduced their price target on shares of Clarivate from $2.90 to $2.60 and set a "neutral" rating on the stock in a research note on Thursday, July 30th. One equities research analyst has rated the stock with a Buy rating, three have assigned a Hold rating and three have given a Sell rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Reduce" and a consensus target price of $3.02.

Clarivate Stock Performance

The firm has a 50-day moving average price of $1.86 and a 200 day moving average price of $2.19. The firm has a market capitalization of $1.12 billion, a PE ratio of -3.36 and a beta of 1.40. The company has a quick ratio of 0.85, a current ratio of 0.85 and a debt-to-equity ratio of 0.93.

Clarivate (NYSE:CLVT - Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The company reported $0.19 earnings per share for the quarter, beating analysts' consensus estimates of $0.18 by $0.01. The business had revenue of $587.30 million during the quarter, compared to analysts' expectations of $589.73 million. Clarivate had a positive return on equity of 9.15% and a negative net margin of 13.84%. The company's revenue was down 5.5% on a year-over-year basis. During the same period in the previous year, the firm posted $0.18 earnings per share. Research analysts expect that Clarivate PLC will post 0.67 earnings per share for the current year.

Insider Activity

In other news, Director Andrew Snyder sold 2,489,618 shares of the stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $1.94, for a total transaction of $4,829,858.92. Following the sale, the director owned 3,856,597 shares of the company's stock, valued at approximately $7,481,798.18. This represents a 39.23% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Kenneth L. Cornick purchased 650,000 shares of Clarivate stock in a transaction dated Thursday, August 6th. The shares were acquired at an average cost of $1.86 per share, for a total transaction of $1,209,000.00. Following the transaction, the director directly owned 1,750,000 shares of the company's stock, valued at approximately $3,255,000. This represents a 59.09% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders own 22.88% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. WINTON GROUP Ltd acquired a new position in Clarivate during the 2nd quarter worth $114,000. Engineers Gate Manager LP purchased a new position in shares of Clarivate in the 2nd quarter valued at about $431,000. West Family Investments Inc. acquired a new position in shares of Clarivate during the second quarter worth about $43,000. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new position in shares of Clarivate during the second quarter worth about $605,000. Finally, HB Wealth Management LLC acquired a new position in shares of Clarivate during the second quarter worth about $35,000. Institutional investors and hedge funds 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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