Clearwater Analytics (NYSE:CWAN) Receives "Outperform" Rating from Royal Bank Of Canada

Key Points

• Royal Bank of Canada reaffirmed its "outperform" rating for Clearwater Analytics, setting a target price of $36.00 which implies an 85.39% potential upside from the stock's previous close.
• Clearwater Analytics' stock has been rated as a "Buy" by nine analysts and holds a consensus target price of $32.67 with a current trading price of $19.42.
• The company announced a $100 million share buyback plan, indicating confidence from leadership in the stock's current valuation.

Clearwater Analytics (NYSE:CWAN - Get Free Report)'s stock had its "outperform" rating restated by investment analysts at Royal Bank Of Canada in a research note issued on Wednesday,Benzinga reports. They presently have a $36.00 price objective on the stock. Royal Bank Of Canada's target price would indicate a potential upside of 97.80% from the company's current price.

A number of other brokerages also recently weighed in on CWAN. DA Davidson lowered their target price on Clearwater Analytics from $36.00 to $34.00 and set a "buy" rating for the company in a report on Tuesday, August 12th. Piper Sandler set a $27.00 target price on Clearwater Analytics and gave the company an "overweight" rating in a research report on Tuesday, June 24th. The Goldman Sachs Group raised Clearwater Analytics from a "neutral" rating to a "buy" rating and set a $27.00 target price on the stock in a research report on Monday, August 11th. Zacks Research raised Clearwater Analytics from a "strong sell" rating to a "hold" rating in a research report on Thursday, September 4th. Finally, Oppenheimer dropped their price target on Clearwater Analytics from $40.00 to $36.00 and set an "outperform" rating on the stock in a report on Wednesday, June 11th. Nine research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat.com, Clearwater Analytics presently has a consensus rating of "Moderate Buy" and a consensus target price of $32.67.

Clearwater Analytics Price Performance

NYSE:CWAN traded down $1.11 during trading hours on Wednesday, hitting $18.20. The company's stock had a trading volume of 10,346,199 shares, compared to its average volume of 3,922,392. The stock has a fifty day simple moving average of $20.28 and a 200-day simple moving average of $22.52. The company has a market capitalization of $5.32 billion, a P/E ratio of 11.45, a PEG ratio of 4.62 and a beta of 0.73. The company has a debt-to-equity ratio of 0.44, a current ratio of 2.02 and a quick ratio of 2.02. Clearwater Analytics has a twelve month low of $17.98 and a twelve month high of $35.71.

Clearwater Analytics (NYSE:CWAN - Get Free Report) last posted its earnings results on Wednesday, August 6th. The company reported $0.12 EPS for the quarter, missing the consensus estimate of $0.13 by ($0.01). Clearwater Analytics had a net margin of 73.74% and a return on equity of 3.23%. The firm had revenue of $181.94 million during the quarter, compared to the consensus estimate of $174.16 million. During the same quarter in the prior year, the business posted $0.10 earnings per share. Clearwater Analytics's revenue for the quarter was up 70.4% compared to the same quarter last year. On average, analysts anticipate that Clearwater Analytics will post 0.18 EPS for the current fiscal year.

Clearwater Analytics declared that its board has initiated a share repurchase program on Wednesday, September 3rd that permits the company to repurchase $100.00 million in shares. This repurchase authorization permits the company to repurchase up to 1.7% of its stock through open market purchases. Stock repurchase programs are often a sign that the company's management believes its shares are undervalued.

Insider Activity at Clearwater Analytics

In related news, CFO James S. Cox sold 11,275 shares of the stock in a transaction dated Monday, September 15th. The stock was sold at an average price of $19.51, for a total transaction of $219,975.25. Following the completion of the sale, the chief financial officer directly owned 338,964 shares in the company, valued at $6,613,187.64. This represents a 3.22% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Sandeep Sahai sold 46,962 shares of the stock in a transaction dated Friday, August 22nd. The shares were sold at an average price of $20.12, for a total value of $944,875.44. Following the sale, the chief executive officer owned 895,663 shares of the company's stock, valued at $18,020,739.56. This represents a 4.98% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 219,323 shares of company stock worth $4,652,514 in the last ninety days. 3.31% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Zevenbergen Capital Investments LLC raised its position in shares of Clearwater Analytics by 48.6% in the 1st quarter. Zevenbergen Capital Investments LLC now owns 909,429 shares of the company's stock worth $24,373,000 after acquiring an additional 297,414 shares in the last quarter. Wealth Enhancement Advisory Services LLC purchased a new stake in shares of Clearwater Analytics in the 1st quarter worth approximately $314,000. Vanguard Group Inc. grew its stake in shares of Clearwater Analytics by 11.3% in the 1st quarter. Vanguard Group Inc. now owns 23,246,312 shares of the company's stock worth $623,001,000 after buying an additional 2,366,715 shares during the last quarter. Yorktown Management & Research Co Inc purchased a new stake in shares of Clearwater Analytics in the 1st quarter worth approximately $409,000. Finally, Universal Beteiligungs und Servicegesellschaft mbH purchased a new stake in shares of Clearwater Analytics in the 4th quarter worth approximately $8,580,000. Institutional investors own 50.10% of the company's stock.

About Clearwater Analytics

Clearwater Analytics Holdings, Inc develops and provides a Software-as-a-Service (SaaS) solution for automated investment data aggregation, reconciliation, accounting, and reporting services to insurers, investment managers, corporations, institutional investors, and government entities in the United States and internationally.