Clearwater Analytics (NYSE:CWAN) Downgraded to “Sell” Rating by Wall Street Zen

Wall Street Zen downgraded shares of Clearwater Analytics (NYSE:CWAN) from a hold rating to a sell rating in a report published on Saturday.

Other equities analysts also recently issued research reports about the stock. Zacks Research raised shares of Clearwater Analytics from a “strong sell” rating to a “hold” rating in a research note on Thursday, September 4th. DA Davidson restated a “buy” rating and issued a $30.00 price target on shares of Clearwater Analytics in a research note on Tuesday, November 18th. Wells Fargo & Company reduced their price objective on Clearwater Analytics from $32.00 to $27.00 and set an “overweight” rating for the company in a research report on Thursday, November 6th. UBS Group dropped their target price on Clearwater Analytics from $35.00 to $30.00 and set a “buy” rating on the stock in a report on Thursday, November 6th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Clearwater Analytics in a research note on Wednesday. Nine analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $30.56.

Clearwater Analytics Price Performance

CWAN opened at $21.55 on Friday. The company has a current ratio of 1.97, a quick ratio of 1.97 and a debt-to-equity ratio of 0.42. The company has a market cap of $6.31 billion, a price-to-earnings ratio of 14.09, a price-to-earnings-growth ratio of 5.68 and a beta of 0.69. The stock has a fifty day simple moving average of $18.49 and a two-hundred day simple moving average of $20.52. Clearwater Analytics has a 12-month low of $15.73 and a 12-month high of $32.71.

Clearwater Analytics (NYSE:CWAN) last announced its earnings results on Wednesday, November 5th. The company reported $0.14 EPS for the quarter, missing analysts’ consensus estimates of $0.16 by ($0.02). The business had revenue of $205.11 million for 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 quarterly revenue was up 77.1% on a year-over-year basis. During the same quarter last year, the firm posted $0.14 EPS. Clearwater Analytics has set its FY 2025 guidance at EPS. Q4 2025 guidance at EPS. Research analysts predict that Clearwater Analytics will post 0.18 earnings per share for the current fiscal year.

Clearwater Analytics announced that its Board of Directors has approved a stock repurchase plan on Wednesday, September 3rd that allows the company to buyback $100.00 million in outstanding shares. This buyback authorization allows the company to repurchase up to 1.7% of its stock through open market purchases. Stock buyback plans are often an indication that the company’s management believes its stock is undervalued.

Insiders Place Their Bets

In related news, insider Subi Sethi sold 7,434 shares of Clearwater Analytics stock in a transaction dated Tuesday, September 30th. The stock was sold at an average price of $17.68, for a total value of $131,433.12. Following the completion of the sale, the insider directly owned 226,980 shares in the company, valued at approximately $4,013,006.40. This trade represents a 3.17% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CRO Scott Stanley Erickson sold 4,505 shares of the company’s stock in a transaction dated Tuesday, September 30th. The shares were sold at an average price of $17.68, for a total transaction of $79,648.40. Following the transaction, the executive owned 19,552 shares in the company, valued at $345,679.36. This represents a 18.73% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 83,602 shares of company stock worth $1,554,226. 3.31% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in CWAN. Wellington Management Group LLP boosted its holdings in Clearwater Analytics by 108.7% in the third quarter. Wellington Management Group LLP now owns 17,793,701 shares of the company’s stock worth $320,642,000 after purchasing an additional 9,268,950 shares during the last quarter. Vanguard Group Inc. lifted its holdings in shares of Clearwater Analytics by 21.9% during the 3rd quarter. Vanguard Group Inc. now owns 33,261,349 shares of the company’s stock valued at $599,370,000 after buying an additional 5,967,798 shares during the period. Norges Bank purchased a new position in shares of Clearwater Analytics in the 2nd quarter worth $106,504,000. Hood River Capital Management LLC bought a new stake in shares of Clearwater Analytics in the second quarter worth $99,105,000. Finally, Blair William & Co. IL increased its position in Clearwater Analytics by 83.5% during the third quarter. Blair William & Co. IL now owns 7,134,647 shares of the company’s stock valued at $128,566,000 after acquiring an additional 3,245,986 shares during the last quarter. 50.10% of the stock is owned by hedge funds and other institutional investors.

Clearwater Analytics Company Profile

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.