Clarivate (NYSE:CLVT) Stock Price Down 6.5% - Here's Why

Key Points

• Clarivate shares fell 6.5% to about $1.94, trading well below their 50-day and 200-day moving averages.
• Analyst sentiment weakened as Barclays, Citigroup, and Goldman Sachs lowered their price targets; the stock carries a consensus “Reduce” rating, with three Sell ratings and a $3.02 average target.
• Although quarterly EPS slightly beat estimates, revenue declined 5.5% year over year and the company reported a negative net margin. Insider activity was mixed, with one director buying 250,000 shares while another sold nearly 2.5 million shares.

Clarivate PLC (NYSE:CLVT - Get Free Report) shares were down 6.5% on Tuesday . The stock traded as low as $1.93 and last traded at $1.9350. 169,955 shares traded hands during mid-day trading, a decline of 97% from the average daily volume of 6,404,138 shares. The stock had previously closed at $2.07.

Analyst Ratings Changes

CLVT has been the topic of several recent analyst reports. Weiss Ratings reiterated a "sell (e+)" rating on shares of Clarivate in a report on Wednesday, June 24th. 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 research note on Thursday, July 30th. Citigroup dropped their price objective on shares of Clarivate from $2.80 to $2.50 and set a "neutral" 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 research note on Thursday, July 30th. Finally, Wall Street Zen lowered Clarivate from a "buy" rating to a "hold" rating in a research report on Saturday, August 1st. One analyst has rated the stock with a Buy rating, three have assigned a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Reduce" and a consensus price target of $3.02.

Clarivate Stock Performance

The stock has a market capitalization of $1.21 billion, a P/E ratio of -3.66 and a beta of 1.39. The stock's 50-day simple moving average is $2.12 and its 200 day simple moving average is $2.31. The company has a debt-to-equity ratio of 0.93, a current ratio of 0.85 and a quick ratio of 0.85.

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

Insiders Place Their Bets

In related news, Director Kenneth Cornick bought 250,000 shares of Clarivate stock in a transaction dated Friday, August 7th. The shares were bought at an average cost of $1.85 per share, with a total value of $462,500.00. Following the acquisition, the director owned 2,000,000 shares in the company, valued at $3,700,000. This trade represents a 14.29% increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, Director Andrew Snyder sold 2,489,618 shares of the stock in a transaction that occurred on 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 completion of the transaction, the director directly owned 3,856,597 shares of the company's stock, valued at approximately $7,481,798.18. The trade was a 39.23% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 22.88% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in CLVT. Personal CFO Solutions LLC purchased a new stake in shares of Clarivate in the first quarter worth approximately $30,000. FreeGulliver LLC bought a new position in shares of Clarivate during the first quarter valued at about $30,000. Principal Financial Group Inc. purchased a new position in Clarivate during the first quarter worth about $32,000. M&T Bank Corp bought a new stake in Clarivate in the 4th quarter worth about $34,000. Finally, Parallel Advisors LLC lifted its holdings in Clarivate by 94.2% during the first quarter. Parallel Advisors LLC now owns 13,786 shares of the company's stock worth $35,000 after acquiring an additional 6,687 shares during the period. 85.72% of the stock is owned by institutional investors.

About Clarivate

Clarivate plc is a global information and analytics company that provides insights and workflow solutions to accelerate the pace of innovation. The company delivers proprietary data, analytics, and expertise to support research and development in the life sciences, intellectual property management, academic institutions, government agencies, and corporations. Its core offerings include citation and patent databases, drug pipeline analytics, trademark research tools, regulatory compliance solutions, and market intelligence platforms.

Originally part of Thomson Reuters' Intellectual Property & Science division, Clarivate was established as an independent entity in 2016 following a spin-off transaction.

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