Clarivate (NYSE:CLVT) Trading Down 6.3% - Here's What Happened

Key Points

• Clarivate shares fell 6.3% to about $2.03 in midday trading, with volume down 66% from the average. The decline came amid mostly cautious analyst views, including an average “Reduce” rating and a consensus price target of $3.02.
• Clarivate slightly beat quarterly EPS estimates at $0.19 versus $0.18, but revenue of $587.3 million missed expectations and declined 5.5% year over year. The company reported a negative net margin of 13.84%.
• Insider activity was mixed: Director Kenneth Cornick bought 250,000 shares, while Director Andrew Miles Snyder sold nearly 2.49 million shares. Institutional investors own a substantial 85.72% of Clarivate’s outstanding stock.

Clarivate PLC (NYSE:CLVT - Get Free Report) shares dropped 6.3% during mid-day trading on Wednesday . The company traded as low as $2.06 and last traded at $2.0250. 2,213,689 shares changed hands during trading, a decline of 66% from the average daily volume of 6,554,808 shares. The stock had previously closed at $2.16.

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on CLVT shares. Wall Street Zen lowered shares of Clarivate from a "buy" rating to a "hold" rating in a research note on Saturday, August 1st. Barclays decreased their price objective on Clarivate from $2.50 to $2.00 and set an "underweight" 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 note on Wednesday, June 24th. Stifel Nicolaus dropped their price target on Clarivate from $6.00 to $5.00 and set a "buy" rating on the stock in a research report on Thursday, July 30th. Finally, Citigroup lowered their price target on Clarivate from $2.80 to $2.50 and set a "neutral" rating on the stock in a research report on Thursday, July 30th. One investment analyst has rated the stock with a Buy rating, four have issued a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat, the company has an average rating of "Reduce" and a consensus target price of $3.02.

Clarivate Stock Performance

The firm has a market cap of $1.28 billion, a P/E ratio of -3.89 and a beta of 1.40. The company has a current ratio of 0.85, a quick ratio of 0.85 and a debt-to-equity ratio of 0.93. The company's 50-day moving average is $2.12 and its two-hundred day moving average is $2.31.

Clarivate (NYSE:CLVT - Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The company reported $0.19 EPS for the quarter, topping 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%. The company's revenue for the quarter was down 5.5% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.18 earnings per share. As a group, equities analysts predict that Clarivate PLC will post 0.67 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, Director Kenneth L. Cornick purchased 250,000 shares of the business's stock in a transaction that occurred on Friday, August 7th. The shares were acquired at an average price of $1.85 per share, for a total transaction of $462,500.00. Following the completion of the acquisition, the director directly owned 2,000,000 shares in the company, valued at approximately $3,700,000. The trade was a 14.29% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Andrew Miles Snyder sold 2,489,618 shares of the stock in a transaction on 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 completion of the transaction, the director owned 3,856,597 shares of the company's stock, valued at approximately $7,481,798.18. This trade represents a 39.23% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 22.88% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. Royal Bank of Canada increased its holdings in Clarivate by 96.2% in the 1st quarter. Royal Bank of Canada now owns 63,630 shares of the company's stock worth $250,000 after acquiring an additional 31,197 shares in the last quarter. AQR Capital Management LLC boosted its stake in shares of Clarivate by 37.0% during the first quarter. AQR Capital Management LLC now owns 451,872 shares of the company's stock valued at $1,749,000 after purchasing an additional 122,099 shares during the period. Millennium Management LLC increased its stake in shares of Clarivate by 1,420.4% during the first quarter. Millennium Management LLC now owns 1,188,978 shares of the company's stock valued at $4,673,000 after buying an additional 1,110,774 shares during the period. Goldman Sachs Group Inc. boosted its position in Clarivate by 15.5% during the 1st quarter. Goldman Sachs Group Inc. now owns 616,250 shares of the company's stock valued at $2,422,000 after acquiring an additional 82,768 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in Clarivate by 13.1% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,243,683 shares of the company's stock worth $4,888,000 after purchasing an additional 144,462 shares in the last quarter. Institutional investors own 85.72% of the company's stock.

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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