Clearwater Analytics’ (CWAN) Outperform Rating Reiterated at Royal Bank Of Canada

Royal Bank Of Canada reissued their outperform rating on shares of Clearwater Analytics (NYSE:CWAN) in a research note issued to investors on Monday, MarketBeat.com reports. Royal Bank Of Canada currently has a $36.00 price target on the stock.

A number of other research firms have also commented on CWAN. Wall Street Zen lowered shares of Clearwater Analytics from a “hold” rating to a “sell” rating in a report on Saturday, November 22nd. Zacks Research upgraded shares of Clearwater Analytics from a “strong sell” rating to a “hold” rating in a research report on Thursday, September 4th. JPMorgan Chase & Co. dropped their target price on shares of Clearwater Analytics from $28.00 to $26.00 and set an “overweight” rating for the company in a report on Thursday, November 6th. Oppenheimer cut Clearwater Analytics from an “outperform” rating to a “market perform” rating in a research note on Monday. Finally, William Blair reaffirmed a “market perform” rating on shares of Clearwater Analytics in a research report on Monday. Eight research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $28.65.

Clearwater Analytics Stock Performance

NYSE CWAN opened at $24.16 on Monday. The company has a 50-day simple moving average of $20.24 and a two-hundred day simple moving average of $20.33. The company has a quick ratio of 1.97, a current ratio of 1.97 and a debt-to-equity ratio of 0.42. Clearwater Analytics has a 12-month low of $15.73 and a 12-month high of $32.00. The firm has a market cap of $7.07 billion, a price-to-earnings ratio of 15.79, a PEG ratio of 6.34 and a beta of 0.67.

Clearwater Analytics (NYSE:CWAN) last released its quarterly earnings data on Wednesday, November 5th. The company reported $0.14 EPS for the quarter, missing the consensus estimate of $0.16 by ($0.02). The company had revenue of $205.11 million during the quarter, compared to analysts’ expectations of $203.66 million. Clearwater Analytics had a return on equity of 2.77% and a net margin of 61.28%.The firm’s quarterly revenue was up 77.1% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.14 EPS. On average, equities analysts forecast that Clearwater Analytics will post 0.18 EPS for the current year.

Clearwater Analytics declared that its board has initiated a share repurchase program on Wednesday, September 3rd that permits the company to repurchase $100.00 million in shares. This repurchase authorization permits the company to reacquire up to 1.7% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company’s management believes its shares are undervalued.

Insider Buying and Selling at Clearwater Analytics

In related news, CFO James S. Cox sold 7,425 shares of Clearwater Analytics stock in a transaction dated Wednesday, December 17th. The shares were sold at an average price of $22.00, for a total transaction of $163,350.00. Following the completion of the transaction, the chief financial officer directly owned 328,983 shares of the company’s stock, valued at $7,237,626. This trade represents a 2.21% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CRO Scott Stanley Erickson sold 4,505 shares of the business’s stock in a transaction dated Tuesday, September 30th. The stock was sold at an average price of $17.68, for a total transaction of $79,648.40. Following the sale, the executive directly owned 19,552 shares in the company, valued at $345,679.36. The trade was 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 120,727 shares of company stock worth $2,402,598. Corporate insiders own 3.31% of the company’s stock.

Hedge Funds Weigh In On Clearwater Analytics

A number of hedge funds have recently bought and sold shares of CWAN. Versant Capital Management Inc raised its holdings in Clearwater Analytics by 189.3% in the third quarter. Versant Capital Management Inc now owns 1,565 shares of the company’s stock worth $28,000 after buying an additional 1,024 shares during the last quarter. First Horizon Advisors Inc. grew its holdings in shares of Clearwater Analytics by 278.9% during the second quarter. First Horizon Advisors Inc. now owns 1,523 shares of the company’s stock valued at $33,000 after buying an additional 1,121 shares during the last quarter. Essex Investment Management Co. LLC increased its position in shares of Clearwater Analytics by 54.9% during the third quarter. Essex Investment Management Co. LLC now owns 1,806 shares of the company’s stock valued at $33,000 after acquiring an additional 640 shares in the last quarter. Bessemer Group Inc. raised its holdings in Clearwater Analytics by 84.6% in the 2nd quarter. Bessemer Group Inc. now owns 1,545 shares of the company’s stock worth $35,000 after acquiring an additional 708 shares during the last quarter. Finally, Danske Bank A S purchased a new position in Clearwater Analytics in the 3rd quarter worth approximately $36,000. Institutional investors own 50.10% of the company’s stock.

Clearwater Analytics News Summary

Here are the key news stories impacting Clearwater Analytics this week:

• Positive Sentiment: Clearwater agreed to be acquired in an $8.4 billion buyout led by Permira and Warburg Pincus, with a cash offer of $24.55 per share — a near-term floor for the stock and the key reason the share price is trading higher. Clearwater Analytics to Go Private in $8.4bn Deal Led by Permira and Warburg Pincus
• Positive Sentiment: Royal Bank of Canada reaffirmed an “Outperform” rating, which supports investor confidence ahead of the transaction closing. Royal Bank Of Canada Reaffirms “Outperform” Rating for Clearwater Analytics (NYSE:CWAN)
• Positive Sentiment: Unusually high call-option volume suggests some traders are positioning for upside or volatility around the deal/announcements, adding buying pressure. Investors Buy High Volume of Call Options on Clearwater Analytics (NYSE:CWAN)
• Neutral Sentiment: Analysts and market commentaries comparing Clearwater to software peers provide context on valuation and growth but are unlikely to move the stock materially versus the takeover news. Analyzing Clearwater Analytics Hldg In Comparison To Competitors In Software Industry
• Neutral Sentiment: William Blair reiterated a Market Perform rating — not a catalyst but contributes to mixed analyst sentiment ahead of deal closure. William Blair Reiterates Market Perform Rating for Clearwater Analytics (NYSE:CWAN)
• Negative Sentiment: Piper Sandler downgraded the stock, and Loop Capital followed with a downgrade — analyst cuts can pressure sentiment and reflect concerns about deal terms or growth prospects if the transaction stalls. Piper Sandler downgrades Clearwater Analytics Holdings (CWAN)
• Negative Sentiment: Two law firms are soliciting shareholders and investigating the fairness of the $24.55-per-share sale, and one encourages shareholders to contact them — potential litigation or a proxy fight could delay or alter the transaction and increase downside risk. CWAN Alert: Monsey Firm of Wohl & Fruchter Investigating Fairness of the Sale of Clearwater Analytics to Permira and Other Investors Halper Sadeh LLC Encourages CWAN and JHG Shareholders to Contact the Firm to Discuss Their Rights

Clearwater Analytics Company Profile

Clearwater Analytics LLC is a global provider of web-based investment portfolio accounting, reporting, and analytics solutions. The company’s software-as-a-service platform automates complex processes involved in investment data aggregation, reconciliation, valuation, and regulatory reporting. Serving institutional investors—including insurers, asset managers, corporations, government entities, and asset owners—Clearwater Analytics enables clients to optimize performance visibility, risk management, and operational efficiency.

Founded in 2004 and headquartered in Boise, Idaho, Clearwater Analytics has grown its global footprint with offices across North America, Europe, and the Asia-Pacific region.