Clearwater Analytics' (CWAN) "Outperform" Rating Reaffirmed at 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 reissued by stock analysts at Royal Bank Of Canada in a report issued on Wednesday,Benzinga reports. They currently have a $36.00 target price on the stock. Royal Bank Of Canada's price objective indicates a potential upside of 86.34% from the stock's previous close.

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

Clearwater Analytics Price Performance

Clearwater Analytics stock traded up $0.15 during trading hours on Wednesday, reaching $19.32. 3,913,322 shares of the stock were exchanged, compared to its average volume of 3,932,410. The company has a market cap of $5.65 billion, a P/E ratio of 12.15, a price-to-earnings-growth ratio of 4.85 and a beta of 0.73. The company has a current ratio of 2.02, a quick ratio of 2.02 and a debt-to-equity ratio of 0.44. Clearwater Analytics has a twelve month low of $17.98 and a twelve month high of $35.71. The stock has a 50 day moving average of $20.35 and a two-hundred day moving average of $22.66.

Clearwater Analytics (NYSE:CWAN - Get Free Report) last announced its quarterly earnings data on Wednesday, August 6th. The company reported $0.12 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.13 by ($0.01). The firm had revenue of $181.94 million for the quarter, compared to analyst estimates of $174.16 million. Clearwater Analytics had a return on equity of 3.23% and a net margin of 73.74%.The company's quarterly revenue was up 70.4% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.10 earnings per share. Equities analysts expect that Clearwater Analytics will post 0.18 EPS for the current fiscal year.

Clearwater Analytics announced that its board has approved a stock repurchase program on Wednesday, September 3rd that allows the company to buyback $100.00 million in outstanding shares. This buyback authorization allows the company to purchase up to 1.7% of its stock through open market purchases. Stock buyback programs are often an indication that the company's board of directors believes its shares are undervalued.

Insider Buying and Selling

In related news, CEO Sandeep Sahai sold 46,962 shares of Clearwater Analytics stock in a transaction that occurred on Friday, August 22nd. The shares were sold at an average price of $20.12, for a total transaction of $944,875.44. Following the sale, the chief executive officer directly owned 895,663 shares in the company, valued at $18,020,739.56. This trade represents a 4.98% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CTO Souvik Das sold 10,000 shares of Clearwater Analytics stock in a transaction that occurred on Monday, September 8th. The stock was sold at an average price of $20.57, for a total transaction of $205,700.00. Following the sale, the chief technology officer owned 121,549 shares in the company, valued at approximately $2,500,262.93. This represents a 7.60% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 219,323 shares of company stock worth $4,652,514 in the last ninety days. Company insiders own 3.31% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. First Horizon Advisors Inc. raised its holdings in Clearwater Analytics by 278.9% during the 2nd quarter. First Horizon Advisors Inc. now owns 1,523 shares of the company's stock worth $33,000 after purchasing an additional 1,121 shares during the last quarter. Bessemer Group Inc. raised its holdings in Clearwater Analytics by 84.6% during the 2nd quarter. Bessemer Group Inc. now owns 1,545 shares of the company's stock worth $35,000 after purchasing an additional 708 shares during the last quarter. Nvwm LLC bought a new position in Clearwater Analytics during the 1st quarter worth approximately $46,000. Quarry LP raised its holdings in Clearwater Analytics by 979.4% during the 1st quarter. Quarry LP now owns 2,094 shares of the company's stock worth $56,000 after purchasing an additional 1,900 shares during the last quarter. Finally, CWM LLC raised its holdings in Clearwater Analytics by 714.6% during the 1st quarter. CWM LLC now owns 3,071 shares of the company's stock worth $82,000 after purchasing an additional 2,694 shares during the last quarter. 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.