Clearwater Analytics (NYSE:CWAN) Shares Gap Up – Here’s Why

Clearwater Analytics Holdings, Inc. (NYSE:CWAN) shares gapped up before the market opened on Wednesday . The stock had previously closed at $18.40, but opened at $20.37. Clearwater Analytics shares last traded at $19.8620, with a volume of 4,333,840 shares trading hands.

Analysts Set New Price Targets

A number of analysts have commented on the company. Weiss Ratings reissued a “hold (c)” rating on shares of Clearwater Analytics in a report on Thursday. Wall Street Zen raised Clearwater Analytics from a “sell” rating to a “hold” rating in a research report on Saturday, November 8th. Royal Bank Of Canada reissued an “outperform” rating and issued a $36.00 target price on shares of Clearwater Analytics in a research report on Wednesday, September 17th. The Goldman Sachs Group upgraded shares of Clearwater Analytics from a “neutral” rating to a “buy” rating and set a $27.00 target price on the stock in a research note on Monday, August 11th. Finally, DA Davidson reiterated a “buy” rating and issued a $30.00 price target on shares of Clearwater Analytics in a research note on Tuesday. Nine investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $30.56.

Clearwater Analytics Stock Performance

The stock has a market cap of $5.65 billion, a P/E ratio of 12.61, a PEG ratio of 5.02 and a beta of 0.69. The company has a debt-to-equity ratio of 0.42, a current ratio of 1.97 and a quick ratio of 1.97. The firm’s 50-day moving average price is $18.42 and its 200-day moving average price is $20.61.

Clearwater Analytics (NYSE:CWAN) last issued its earnings results on Wednesday, November 5th. The company reported $0.14 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.16 by ($0.02). The firm had revenue of $205.11 million during the quarter, compared to the consensus estimate of $203.66 million. Clearwater Analytics had a return on equity of 2.77% and a net margin of 61.28%.The company’s revenue for the quarter was up 77.1% compared to the same quarter last year. During the same period last year, the firm posted $0.14 earnings per share. Clearwater Analytics has set its FY 2025 guidance at EPS. Q4 2025 guidance at EPS. Sell-side analysts expect that Clearwater Analytics Holdings, Inc. will post 0.18 earnings per share for the current fiscal year.

Clearwater Analytics declared that its board has approved a stock buyback program 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 stock through open market purchases. Stock repurchase programs are usually an indication that the company’s management believes its stock is undervalued.

Insider Transactions at Clearwater Analytics

In other news, insider Subi Sethi sold 7,434 shares of the stock in a transaction on Tuesday, September 30th. The shares were sold at an average price of $17.68, for a total value of $131,433.12. Following the sale, the insider owned 226,980 shares of the company’s stock, valued at approximately $4,013,006.40. This represents a 3.17% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CRO Scott Stanley Erickson sold 4,505 shares of the company’s stock in a transaction that occurred on Tuesday, September 30th. The shares were sold at an average price of $17.68, for a total value of $79,648.40. Following the transaction, the executive directly owned 19,552 shares in the company, valued at approximately $345,679.36. This represents a 18.73% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 132,327 shares of company stock worth $2,537,323. 3.31% of the stock is currently owned by corporate insiders.

Institutional Trading of Clearwater Analytics

A number of large investors have recently made changes to their positions in CWAN. Future Fund LLC acquired a new position in shares of Clearwater Analytics during the 2nd quarter valued at about $732,000. Zevenbergen Capital Investments LLC raised its stake in Clearwater Analytics by 48.6% during the first quarter. Zevenbergen Capital Investments LLC now owns 909,429 shares of the company’s stock worth $24,373,000 after purchasing an additional 297,414 shares during the period. Riverbridge Partners LLC acquired a new position in Clearwater Analytics in the 2nd quarter valued at about $35,313,000. Vanguard Group Inc. grew its stake in shares of Clearwater Analytics by 11.3% in the 1st quarter. Vanguard Group Inc. now owns 23,246,312 shares of the company’s stock valued at $623,001,000 after buying an additional 2,366,715 shares during the period. Finally, Strs Ohio increased its holdings in shares of Clearwater Analytics by 30.7% during the 2nd quarter. Strs Ohio now owns 66,800 shares of the company’s stock worth $1,465,000 after buying an additional 15,700 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.