Clearwater Analytics (NYSE:CWAN) Cut to Sell at Wall Street Zen

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

Other equities research analysts also recently issued reports about the company. Zacks Research upgraded Clearwater Analytics from a “strong sell” rating to a “hold” rating in a report on Thursday, September 4th. DA Davidson reduced their price objective on Clearwater Analytics from $36.00 to $34.00 and set a “buy” rating for the company in a report on Tuesday, August 12th. Piper Sandler set a $27.00 price objective on Clearwater Analytics and gave the stock an “overweight” rating in a report on Tuesday, June 24th. Royal Bank Of Canada restated an “outperform” rating and set a $36.00 price target on shares of Clearwater Analytics in a research note on Wednesday, September 17th. Finally, The Goldman Sachs Group upgraded Clearwater Analytics from a “neutral” rating to a “buy” rating and set a $27.00 price target for the company in a research note on Monday, August 11th. Nine research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $32.67.

Clearwater Analytics Price Performance

NYSE CWAN opened at $18.94 on Friday. Clearwater Analytics has a one year low of $17.15 and a one year high of $35.71. The stock has a 50-day moving average of $19.08 and a 200 day moving average of $21.19. The company has a market capitalization of $5.54 billion, a price-to-earnings ratio of 11.91, a PEG ratio of 4.79 and a beta of 0.69. The company has a debt-to-equity ratio of 0.44, a quick ratio of 2.02 and a current ratio of 2.02.

Clearwater Analytics (NYSE:CWAN) last released its quarterly earnings data on Wednesday, August 6th. The company reported $0.12 EPS for the quarter, missing the consensus estimate of $0.13 by ($0.01). Clearwater Analytics had a return on equity of 3.23% and a net margin of 73.74%.The business had revenue of $181.94 million during the quarter, compared to the consensus estimate of $174.16 million. During the same quarter in the previous year, the business posted $0.10 earnings per share. Clearwater Analytics’s quarterly revenue was up 70.4% compared to the same quarter last year. On average, sell-side analysts forecast that Clearwater Analytics will post 0.18 EPS for the current year.

Clearwater Analytics announced that its board has initiated a share buyback plan on Wednesday, September 3rd that permits the company to buyback $100.00 million in shares. This buyback authorization permits 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 leadership believes its stock is undervalued.

Insider Buying and Selling

In related news, CFO James S. Cox sold 11,275 shares of the business’s stock in a transaction that occurred on Monday, September 15th. The stock was sold at an average price of $19.51, for a total transaction of $219,975.25. Following the completion of the transaction, the chief financial officer directly owned 338,964 shares in the company, valued at approximately $6,613,187.64. The trade was a 3.22% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CTO Souvik Das sold 10,000 shares of the business’s stock in a transaction that occurred on Wednesday, August 20th. The shares were sold at an average price of $20.00, for a total value of $200,000.00. Following the transaction, the chief technology officer owned 132,549 shares of the company’s stock, valued at approximately $2,650,980. This trade represents a 7.02% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders have sold 143,602 shares of company stock valued at $2,756,283. Insiders own 3.31% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in CWAN. Norges Bank bought a new position in shares of Clearwater Analytics during the 2nd quarter valued at approximately $106,504,000. Hood River Capital Management LLC purchased a new position in Clearwater Analytics in the 2nd quarter worth approximately $99,105,000. Vanguard Group Inc. lifted its holdings in Clearwater Analytics by 11.3% in the 1st quarter. Vanguard Group Inc. now owns 23,246,312 shares of the company’s stock worth $623,001,000 after purchasing an additional 2,366,715 shares in the last quarter. Fuller & Thaler Asset Management Inc. purchased a new position in Clearwater Analytics in the 1st quarter worth approximately $56,648,000. Finally, Nuveen LLC purchased a new position in Clearwater Analytics in the 1st quarter worth approximately $53,894,000. 50.10% of the stock is currently owned by 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.