Clarivate (NYSE:CLVT) Trading Up 4.1% - Time to Buy?

Key Points

• Clarivate shares rose 4.1% to about $2.14 in Tuesday trading, although volume was 98% below the average session level.
• Analysts remain cautious, with the stock carrying an average “Reduce” rating and a $3.02 price target; recent firms lowered targets, while ratings include one Buy, four Holds, and three Sells.
• Clarivate slightly beat quarterly EPS estimates at $0.19 versus $0.18, but revenue fell 5.5% year over year to $587.3 million and the company reported a negative 13.84% net margin. Insider activity was mixed, with one director selling 2.49 million shares and another purchasing 250,000.

Clarivate PLC (NYSE:CLVT - Get Free Report)'s stock price was up 4.1% during trading on Tuesday . The stock traded as high as $2.11 and last traded at $2.1350. 157,091 shares traded hands during mid-day trading, a decline of 98% from the average session volume of 6,487,287 shares. The stock had previously closed at $2.05.

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on the stock. Barclays dropped their price objective on shares of Clarivate from $2.50 to $2.00 and set an "underweight" rating for the company in a research note on Thursday, July 30th. Wall Street Zen cut Clarivate from a "buy" rating to a "hold" rating in a report on Saturday, August 1st. Citigroup decreased their price target on Clarivate from $2.80 to $2.50 and set a "neutral" rating for the company in a report on Thursday, July 30th. Stifel Nicolaus lowered their price objective 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. Finally, The Goldman Sachs Group reduced their price objective on Clarivate from $2.90 to $2.60 and set a "neutral" rating for the company in a research note on Thursday, July 30th. One analyst has rated the stock with a Buy rating, four have given a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Reduce" and an average price target of $3.02.

Clarivate Trading Up 0.7%

The stock has a market capitalization of $1.32 billion, a PE ratio of -3.97 and a beta of 1.40. The firm has a 50-day moving average price of $2.12 and a 200-day moving average price of $2.30. The company has a current ratio of 0.85, a quick ratio of 0.85 and a debt-to-equity ratio of 0.93.

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 forecast that Clarivate PLC will post 0.67 EPS for the current fiscal year.

Insider Buying and Selling at Clarivate

In related news, Director Andrew Miles Snyder sold 2,489,618 shares of Clarivate stock in a transaction on 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 completion of the sale, 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 ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Kenneth L. Cornick purchased 250,000 shares of the company's stock in a transaction dated Friday, August 7th. The shares were acquired at an average price of $1.85 per share, with a total value of $462,500.00. Following the transaction, the director 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 disclosure for this purchase is available in the SEC filing. Corporate insiders own 22.88% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the company. Personal CFO Solutions LLC bought a new position in shares of Clarivate during the 1st quarter valued at about $30,000. FreeGulliver LLC bought a new position in Clarivate during the 1st quarter valued at approximately $30,000. Principal Financial Group Inc. purchased a new stake in Clarivate in the first quarter worth $32,000. M&T Bank Corp purchased a new stake in shares of Clarivate in the 4th quarter worth about $34,000. Finally, Parallel Advisors LLC lifted its holdings in Clarivate by 94.2% in the first quarter. Parallel Advisors LLC now owns 13,786 shares of the company's stock worth $35,000 after buying an additional 6,687 shares during the period. 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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