Clearwater Analytics (NYSE:CWAN) Sees Large Volume Increase – Should You Buy?

Shares of Clearwater Analytics Holdings, Inc. (NYSE:CWAN) saw unusually-high trading volume on Tuesday . Approximately 2,349,543 shares changed hands during mid-day trading, a decline of 48% from the previous session’s volume of 4,487,499 shares.The stock last traded at $24.0750 and had previously closed at $24.06.

Clearwater Analytics News Summary

Here are the key news stories impacting Clearwater Analytics this week:

• Positive Sentiment: Deal terms: The Investor Group agreed to acquire Clearwater for roughly $8.4 billion, offering $24.55 per share in cash (a roughly 47% premium to pre-announcement levels). This sets a clear near-term floor for public shareholders’ value. Clearwater Analytics to Be Acquired
• Positive Sentiment: Blue‑chip backers: The buyer group includes Permira and Warburg Pincus with participation/support from Temasek and Francisco Partners, increasing the likelihood the financing and execution will proceed. Permira-, Warburg-Led Consortium to Acquire
• Positive Sentiment: Analyst reaction: Some analysts say the announced price may undervalue Clearwater — RBC reiterated an outperform and flagged a $36 target, which could increase pressure for a higher bid or spark bidding interest. RBC Capital Comment
• Neutral Sentiment: Market response and activity: The stock jumped sharply on the news (heavy trading and a premarket surge), and there was an unusual spike in call-option activity ahead of/around the announcement, indicating increased speculative and takeover-driven trading. Stock Market Today: Surge on Take-Private News
• Negative Sentiment: Shareholder/legal challenges: Two investor‑rights firms (Halper Sadeh LLC and The Ademi Firm) have launched investigations and alerts questioning whether the $24.55 cash price is fair and whether fiduciary duties were met — these actions could lead to litigation or a push for a higher price and may delay closing. Halper Sadeh Investigation

Analysts Set New Price Targets

CWAN has been the topic of several research reports. Morgan Stanley reaffirmed an “overweight” rating and issued a $27.00 target price on shares of Clearwater Analytics in a research report on Monday, November 24th. Wells Fargo & Company dropped their price objective on shares of Clearwater Analytics from $32.00 to $27.00 and set an “overweight” rating for the company in a research note on Thursday, November 6th. DA Davidson restated a “buy” rating and set a $30.00 target price on shares of Clearwater Analytics in a research report on Wednesday, December 10th. Zacks Research upgraded shares of Clearwater Analytics from a “strong sell” rating to a “hold” rating in a research report on Thursday, September 4th. Finally, Oppenheimer downgraded Clearwater Analytics from an “outperform” rating to a “market perform” rating in a research report on Monday. Eight research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat.com, Clearwater Analytics presently has an average rating of “Moderate Buy” and a consensus target price of $28.65.

Clearwater Analytics Price Performance

The business has a fifty day moving average price of $19.99 and a 200 day moving average price of $20.30. The company has a market cap of $7.05 billion, a price-to-earnings ratio of 15.74, a PEG ratio of 5.86 and a beta of 0.67. The company has a debt-to-equity ratio of 0.42, a quick ratio of 1.97 and a current ratio of 1.97.

Clearwater Analytics (NYSE:CWAN) last released its earnings results on Wednesday, November 5th. The company reported $0.14 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.16 by ($0.02). The business had revenue of $205.11 million during the quarter, compared to the consensus estimate of $203.66 million. Clearwater Analytics had a net margin of 61.28% and a return on equity of 2.77%. The business’s revenue was up 77.1% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.14 EPS. As a group, research analysts anticipate that Clearwater Analytics Holdings, Inc. will post 0.18 earnings per share for the current year.

Clearwater Analytics declared that its Board of Directors has approved a stock buyback plan on Wednesday, September 3rd that authorizes the company to repurchase $100.00 million in shares. This repurchase authorization authorizes the company to buy up to 1.7% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company’s board of directors believes its shares are undervalued.

Insider Activity at Clearwater Analytics

In other Clearwater Analytics news, CTO Souvik Das sold 10,000 shares of the company’s stock in a transaction dated Monday, December 8th. The stock was sold at an average price of $21.59, for a total value of $215,900.00. Following the completion of the transaction, the chief technology officer owned 96,186 shares of the company’s stock, valued at $2,076,655.74. This represents a 9.42% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Subi Sethi sold 7,434 shares of the stock in a transaction dated Tuesday, September 30th. The shares were sold at an average price of $17.68, for a total value of $131,433.12. Following the completion of the transaction, the insider owned 226,980 shares of the company’s stock, valued at $4,013,006.40. This represents a 3.17% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 120,727 shares of company stock valued at $2,402,598 over the last three months. 3.31% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Versant Capital Management Inc grew its holdings in Clearwater Analytics by 189.3% during the 3rd quarter. Versant Capital Management Inc now owns 1,565 shares of the company’s stock worth $28,000 after acquiring an additional 1,024 shares during the last quarter. First Horizon Advisors Inc. lifted its stake in shares of Clearwater Analytics by 278.9% in the second quarter. First Horizon Advisors Inc. now owns 1,523 shares of the company’s stock worth $33,000 after acquiring an additional 1,121 shares during the period. Essex Investment Management Co. LLC lifted its position in shares of Clearwater Analytics by 54.9% in the 3rd quarter. Essex Investment Management Co. LLC now owns 1,806 shares of the company’s stock worth $33,000 after purchasing an additional 640 shares during the period. Bessemer Group Inc. increased its position in shares of Clearwater Analytics by 84.6% during the second quarter. Bessemer Group Inc. now owns 1,545 shares of the company’s stock worth $35,000 after buying an additional 708 shares during the period. Finally, Danske Bank A S bought a new stake in Clearwater Analytics during the third quarter valued at $36,000. Institutional investors own 50.10% of the company’s stock.

Clearwater Analytics Company Profile

Clearwater Analytics LLC is a global provider of web-based investment portfolio accounting, reporting, and analytics solutions. The company’s software-as-a-service platform automates complex processes involved in investment data aggregation, reconciliation, valuation, and regulatory reporting. Serving institutional investors—including insurers, asset managers, corporations, government entities, and asset owners—Clearwater Analytics enables clients to optimize performance visibility, risk management, and operational efficiency.

Founded in 2004 and headquartered in Boise, Idaho, Clearwater Analytics has grown its global footprint with offices across North America, Europe, and the Asia-Pacific region.