Clarivate (NYSE:CLVT) Shares Up 16% on Better-Than-Expected Earnings

Clarivate PLC (NYSE:CLVT)’s share price shot up 16% on Tuesday after the company announced better than expected quarterly earnings. The company traded as high as $1.85 and last traded at $1.9250. 2,741,625 shares were traded during mid-day trading, a decline of 54% from the average session volume of 5,971,210 shares. The stock had previously closed at $1.66.

The company reported $0.21 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.18 by $0.03. The company had revenue of $481.60 million during the quarter, compared to analyst estimates of $566.77 million. Clarivate had a positive return on equity of 9.84% and a negative net margin of 17.02%. The firm’s quarterly revenue was down 22.7% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.18 EPS.

Wall Street Analysts Forecast Growth

A number of research firms have commented on CLVT. Citigroup dropped their price target on shares of Clarivate from $2.80 to $2.50 and set a “neutral” rating on the stock in a research report on Thursday, July 30th. The Goldman Sachs Group decreased their price objective on shares of Clarivate from $2.60 to $2.30 and set a “neutral” rating for the company in a report on Thursday. Jefferies Financial Group reiterated a “hold” rating and set a $2.25 price objective on shares of Clarivate in a research note on Thursday. Morgan Stanley started coverage on Clarivate in a report on Friday, October 30th. They set an “underweight” rating and a $1.50 target price on the stock. Finally, Stifel Nicolaus cut their target price on Clarivate from $6.00 to $5.00 and set a “buy” rating for the company in a research report on Thursday, July 30th. One equities research analyst has rated the stock with a Buy rating, five have assigned a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Reduce” and a consensus target price of $2.65.

Insider Activity

In related news, Director Kenneth Cornick bought 250,000 shares of the business’s stock in a transaction dated Friday, August 7th. The shares were bought at an average cost of $1.85 per share, with a total value of $462,500.00. Following the completion of the transaction, the director directly owned 2,000,000 shares of the company’s stock, valued at approximately $3,700,000. This trade represents a 14.29% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. 22.88% of the stock is owned by insiders.

Hedge Funds Weigh In On Clarivate

Institutional investors have recently bought and sold shares of the stock. KBC Group NV purchased a new position in Clarivate during the 1st quarter worth approximately $4,118,000. Empowered Funds LLC raised its stake in Clarivate by 418.6% during the 1st quarter. Empowered Funds LLC now owns 2,015,829 shares of the company’s stock valued at $5,100,000 after purchasing an additional 1,627,159 shares during the period. Arrowstreet Capital Limited Partnership acquired a new stake in Clarivate during the 1st quarter valued at $3,342,000. Amundi raised its stake in Clarivate by 1,670.2% during the 1st quarter. Amundi now owns 558,992 shares of the company’s stock valued at $1,414,000 after purchasing an additional 527,414 shares during the period. Finally, First Trust Advisors LP lifted its holdings in shares of Clarivate by 10.3% in the first quarter. First Trust Advisors LP now owns 5,522,601 shares of the company’s stock valued at $13,972,000 after purchasing an additional 516,418 shares in the last quarter. Hedge funds and other institutional investors own 85.72% of the company’s stock.

Clarivate Price Performance

The stock has a fifty day moving average price of $1.82 and a 200-day moving average price of $2.21. The company has a market cap of $1.49 billion, a PE ratio of -3.83 and a beta of 1.38. The company has a debt-to-equity ratio of 0.92, a current ratio of 0.88 and a quick ratio of 0.85.

Clarivate Company Profile

Clarivate Plc (NYSE:CLVT) provides analytics, data, and workflow solutions to organizations in academia, government, research, life sciences, and intellectual property. Its offerings are designed to help customers evaluate research, manage information, accelerate innovation, and support strategic decision-making.

The company’s products include Web of Science research databases and citation analytics, InCites research evaluation tools, Derwent innovation and patent intelligence services, and Cortellis life sciences and drug-development information.