Clarivate (NYSE:CLVT) Stock Falls 5.9% - Here's Why

Key Points

• Clarivate shares fell 5.9% to about $1.51, with trading volume 64% below the average session volume.
• Analyst sentiment remains weak: the stock has a consensus rating of “Reduce”, with three Sell, three Hold and one Buy rating; the average price target is $3.02.
• Clarivate slightly beat quarterly EPS estimates but missed revenue expectations, while revenue declined 5.5% year over year and the company posted a negative net margin. Insider activity was mixed, with one director selling 2.49 million shares and another purchasing 650,000 shares.

Shares of Clarivate PLC (NYSE:CLVT - Get Free Report) fell 5.9% during trading on Friday. The stock traded as low as $1.5250 and last traded at $1.5050. 2,250,342 shares changed hands during trading, a decline of 64% from the average session volume of 6,251,355 shares. The stock had previously closed at $1.60.

Wall Street Analyst Weigh In

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

Clarivate Stock Performance

The company has a debt-to-equity ratio of 0.93, a quick ratio of 0.85 and a current ratio of 0.85. The company has a market cap of $962.69 million, a price-to-earnings ratio of -2.91 and a beta of 1.40. The firm's 50-day moving average price is $1.95 and its 200 day moving average price is $2.25.

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

Insider Activity

In other Clarivate news, Director Andrew Snyder sold 2,489,618 shares of the firm's stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $1.94, for a total transaction 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. This trade represents a 39.23% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Kenneth Cornick bought 650,000 shares of the firm's stock in a transaction dated Thursday, August 6th. The shares were bought at an average price of $1.86 per share, with a total value of $1,209,000.00. Following the completion of the transaction, the director directly owned 1,750,000 shares in the company, valued at approximately $3,255,000. This trade represents a 59.09% increase in their position. The disclosure for this purchase is available in the SEC filing. Corporate insiders own 22.88% of the company's stock.

Hedge Funds Weigh In On Clarivate

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Abel Hall LLC grew its position in Clarivate by 12.4% during the first quarter. Abel Hall LLC now owns 54,302 shares of the company's stock valued at $137,000 after acquiring an additional 5,972 shares during the period. Parallel Advisors LLC lifted its stake in shares of Clarivate by 94.2% in the 1st quarter. Parallel Advisors LLC now owns 13,786 shares of the company's stock valued at $35,000 after purchasing an additional 6,687 shares in the last quarter. Royal Bank of Canada grew its holdings in shares of Clarivate by 44.8% during the 1st quarter. Royal Bank of Canada now owns 32,818 shares of the company's stock worth $83,000 after purchasing an additional 10,149 shares during the period. Ancora Advisors LLC grew its stake in Clarivate by 12.3% during the second quarter. Ancora Advisors LLC now owns 100,000 shares of the company's stock worth $216,000 after buying an additional 10,970 shares during the period. Finally, Personal CFO Solutions LLC acquired a new stake in Clarivate in the 1st quarter valued at $30,000. 85.72% of the stock is owned by institutional investors.

About Clarivate

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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