Clearwater Analytics (NYSE:CWAN) Trading Up 9% After Strong Earnings

Clearwater Analytics Holdings, Inc. (NYSE:CWAN)’s share price traded up 9% during mid-day trading on Thursday following a stronger than expected earnings report. The company traded as high as $17.28 and last traded at $17.25. 903,573 shares were traded during trading, a decline of 25% from the average session volume of 1,208,555 shares. The stock had previously closed at $15.82.

The company reported $0.10 EPS for the quarter, beating analysts’ consensus estimates of $0.09 by $0.01. Clearwater Analytics had a negative net margin of 3.90% and a positive return on equity of 1.26%. The business had revenue of $102.70 million for the quarter, compared to analyst estimates of $100.55 million. During the same quarter in the prior year, the business earned $0.07 EPS. Clearwater Analytics’s quarterly revenue was up 21.4% on a year-over-year basis.

Wall Street Analyst Weigh In

A number of research analysts have issued reports on the stock. DA Davidson restated a “buy” rating and set a $24.00 target price on shares of Clearwater Analytics in a research report on Monday, February 5th. Piper Sandler restated a “neutral” rating and set a $20.00 target price on shares of Clearwater Analytics in a research report on Thursday, February 29th. Wells Fargo & Company decreased their target price on shares of Clearwater Analytics from $24.00 to $22.00 and set an “overweight” rating on the stock in a research report on Thursday. JPMorgan Chase & Co. cut their price target on shares of Clearwater Analytics from $22.00 to $20.00 and set a “neutral” rating for the company in a report on Thursday. Finally, Morgan Stanley reaffirmed an “equal weight” rating and set a $19.00 price target on shares of Clearwater Analytics in a report on Thursday. One research analyst has rated the stock with a sell rating, three have issued a hold rating and seven have given a buy rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $21.70.

Insider Activity at Clearwater Analytics

In related news, CEO Sandeep Sahai sold 50,000 shares of the stock in a transaction that occurred on Thursday, February 15th. The shares were sold at an average price of $19.74, for a total value of $987,000.00. Following the completion of the transaction, the chief executive officer now owns 270,838 shares of the company’s stock, valued at approximately $5,346,342.12. The sale was disclosed in a legal filing with the SEC, which is available through the SEC website. In other Clearwater Analytics news, major shareholder Xii Carbon Analytics Acqu Wcas sold 16,250,000 shares of the company’s stock in a transaction that occurred on Monday, March 11th. The shares were sold at an average price of $16.90, for a total value of $274,625,000.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Sandeep Sahai sold 50,000 shares of the company’s stock in a transaction that occurred on Thursday, February 15th. The shares were sold at an average price of $19.74, for a total transaction of $987,000.00. Following the completion of the transaction, the chief executive officer now owns 270,838 shares of the company’s stock, valued at $5,346,342.12. The disclosure for this sale can be found here. Insiders sold a total of 16,310,000 shares of company stock valued at $275,809,400 in the last quarter. Insiders own 2.10% of the company’s stock.

Hedge Funds Weigh In On Clearwater Analytics

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Wellington Shields Capital Management LLC acquired a new stake in shares of Clearwater Analytics during the first quarter worth $283,000. Wellington Shields & Co. LLC acquired a new stake in shares of Clearwater Analytics during the first quarter worth $177,000. RiverPark Advisors LLC increased its position in shares of Clearwater Analytics by 361.0% during the first quarter. RiverPark Advisors LLC now owns 5,366 shares of the company’s stock worth $95,000 after buying an additional 4,202 shares during the period. Capstone Investment Advisors LLC increased its position in shares of Clearwater Analytics by 111.6% during the first quarter. Capstone Investment Advisors LLC now owns 68,710 shares of the company’s stock worth $1,215,000 after buying an additional 36,241 shares during the period. Finally, Allspring Global Investments Holdings LLC increased its position in shares of Clearwater Analytics by 28.7% during the first quarter. Allspring Global Investments Holdings LLC now owns 4,359,848 shares of the company’s stock worth $77,126,000 after buying an additional 971,920 shares during the period. 50.10% of the stock is currently owned by institutional investors and hedge funds.

Clearwater Analytics Stock Performance

The company has a debt-to-equity ratio of 0.11, a current ratio of 5.15 and a quick ratio of 5.15. The company’s 50-day moving average price is $17.01 and its two-hundred day moving average price is $18.68. The company has a market capitalization of $4.32 billion, a price-to-earnings ratio of -220.75, a PEG ratio of 6.82 and a beta of 0.50.

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.