CLEAR Secure (NYSE:YOU) Stock Jumps 3.6% - Here's Why

Key Points

• CLEAR Secure shares rose 3.6% to $41.03 in mid-day trading, although trading volume was about 93% below the average session volume.
• The company’s latest quarterly results exceeded expectations, with EPS of $0.49 versus the $0.40 consensus and revenue of $277.76 million, up 26.6% year over year.
• Analyst sentiment remains mixed: the stock carries a consensus “Hold” rating and a $58.29 target price, while CLEAR Secure also pays a quarterly dividend of $0.15, yielding approximately 1.5%.

Shares of CLEAR Secure, Inc. (NYSE:YOU - Get Free Report) were up 3.6% on Monday. The company traded as high as $39.75 and last traded at $41.03. 114,847 shares changed hands during mid-day trading, a decline of 93% from the average session volume of 1,659,812 shares. The stock had previously closed at $39.60.

Analyst Ratings Changes

YOU has been the subject of a number of research reports. Weiss Ratings lowered shares of CLEAR Secure from a "buy (b-)" rating to a "hold (c+)" rating in a report on Friday, September 4th. Wall Street Zen downgraded shares of CLEAR Secure from a "strong-buy" rating to a "buy" rating in a research note on Saturday, September 5th. JPMorgan Chase & Co. initiated coverage on shares of CLEAR Secure in a research report on Monday, August 24th. They set an "overweight" rating and a $55.00 price target on the stock. DA Davidson cut their price objective on shares of CLEAR Secure from $55.00 to $45.00 and set a "neutral" rating for the company in a report on Friday, September 11th. Finally, The Goldman Sachs Group set a $70.00 target price on shares of CLEAR Secure in a research note on Monday, July 20th. Four analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus target price of $58.29.

CLEAR Secure Trading Up 2.6%

The firm's fifty day simple moving average is $46.58 and its two-hundred day simple moving average is $51.15. The company has a market capitalization of $5.50 billion, a price-to-earnings ratio of 27.69 and a beta of 1.04.

CLEAR Secure (NYSE:YOU - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The company reported $0.49 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.40 by $0.09. CLEAR Secure had a net margin of 14.78% and a return on equity of 71.51%. The business had revenue of $277.76 million during the quarter, compared to the consensus estimate of $269.71 million. During the same quarter last year, the firm earned $0.26 EPS. The business's revenue was up 26.6% compared to the same quarter last year. As a group, analysts forecast that CLEAR Secure, Inc. will post 1.88 EPS for the current fiscal year.

CLEAR Secure Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, September 24th. Shareholders of record on Thursday, September 10th were given a $0.15 dividend. The ex-dividend date was Thursday, September 10th. This represents a $0.60 dividend on an annualized basis and a yield of 1.5%. CLEAR Secure's payout ratio is currently 40.82%.

Insider Activity

In other news, President Michael Barkin sold 11,444 shares of the stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $45.00, for a total transaction of $514,980.00. Following the completion of the transaction, the president directly owned 11,550 shares in the company, valued at approximately $519,750. This represents a 49.77% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Dennis Liu sold 2,104 shares of the firm's stock in a transaction dated Thursday, September 3rd. The stock was sold at an average price of $44.47, for a total value of $93,564.88. Following the sale, the chief accounting officer directly owned 15,870 shares of the company's stock, valued at $705,738.90. The trade was a 11.71% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 18,047 shares of company stock valued at $808,615 in the last quarter. Insiders own 29.70% of the company's stock.

Institutional Investors Weigh In On CLEAR Secure

A number of institutional investors have recently made changes to their positions in the stock. Arrowstreet Capital Limited Partnership boosted its position in shares of CLEAR Secure by 0.3% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 2,680,942 shares of the company's stock worth $129,784,000 after purchasing an additional 8,883 shares during the period. Geode Capital Management LLC raised its position in CLEAR Secure by 0.8% in the fourth quarter. Geode Capital Management LLC now owns 2,453,137 shares of the company's stock valued at $86,069,000 after purchasing an additional 20,419 shares during the period. Dimensional Fund Advisors LP lifted its stake in CLEAR Secure by 2.4% during the first quarter. Dimensional Fund Advisors LP now owns 1,711,291 shares of the company's stock worth $82,848,000 after purchasing an additional 40,880 shares in the last quarter. Wedge Capital Management L L P NC acquired a new position in CLEAR Secure during the second quarter worth $82,542,000. Finally, Bank of New York Mellon Corp purchased a new position in shares of CLEAR Secure during the second quarter worth $47,722,000. 73.80% of the stock is currently owned by institutional investors and hedge funds.

CLEAR Secure Company Profile

Clear Secure, Inc, operating under the CLEAR brand, is an identity technology company that provides secure, biometric-enabled services for verifying individuals. Its platform uses information such as biometrics and government-issued identification to create a reusable identity profile, helping members move through participating locations more efficiently while supporting organizations with identity verification and access control.

The company's consumer offering includes CLEAR Plus, a membership service that allows eligible travelers to use dedicated identity-verification lanes at participating airports.

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