On December 31, 2023, Clearwater Analytics Holdings, Inc. (NYSE:CWAN) announced that its Chief Financial Officer, James Cox, sold 5,859 shares of the company’s stock for a total of $141,084.72. The shares were sold at an average price of $24.08. Following the transaction, Cox retains ownership of 334,061 shares, valued at approximately $8,044,188.88. This sale represents a decrease of 1.72% in his holdings.
The details of the transaction were disclosed in a legal filing with the Securities and Exchange Commission. Following the news, Clearwater Analytics shares opened at $24.09 on January 1, 2024. The stock has experienced fluctuations over the past year, with a low of $15.73 and a high of $32.00.
Recent Financial Performance
In its most recent earnings report, released on November 5, 2023, Clearwater Analytics reported earnings per share (EPS) of $0.14, falling short of analysts’ expectations of $0.16 by $0.02. The company’s revenue for the quarter reached $205.11 million, exceeding the consensus estimate of $203.66 million. This represented a significant year-over-year revenue increase of 77.1%. The firm also reported a return on equity of 2.77% and a net margin of 61.28%.
Equities analysts are optimistic about Clearwater Analytics’ prospects. On average, they predict an EPS of $0.18 for the current fiscal year. The company’s financial ratios indicate a strong liquidity position, with a quick ratio and current ratio both at 1.97, and a debt-to-equity ratio of 0.42. The market capitalization stands at approximately $7.05 billion.
Analyst Ratings and Market Outlook
Analyst ratings for Clearwater Analytics have varied recently, with several firms issuing updated price targets. The Royal Bank of Canada reiterated an “outperform” rating, setting a target price of $36.00 on December 22, 2023. Morgan Stanley also reaffirmed an “overweight” rating with a target price of $27.00. Conversely, Oppenheimer downgraded the stock from “outperform” to “market perform” on the same date.
Wells Fargo lowered its price objective from $32.00 to $27.00, maintaining an “overweight” rating. Loop Capital also adjusted its view, moving from a “buy” rating to a “hold” rating, with a revised target price of $24.55. Overall, the stock has received eight “Buy” ratings and five “Hold” ratings, leading to a consensus rating of “Moderate Buy” and an average price target of $28.65 according to MarketBeat.com.
Clearwater Analytics, established in 2004 and headquartered in Boise, Idaho, is a leading provider of web-based investment portfolio accounting and analytics solutions. The company’s software-as-a-service (SaaS) platform supports institutional investors in automating complex investment data processes. With a growing global presence, Clearwater Analytics serves clients across North America, Europe, and the Asia-Pacific region, helping them enhance performance visibility and operational efficiency.
The recent stock sale and the company’s financial performance highlight Clearwater Analytics’ ongoing developments and the varying perspectives from market analysts. As the firm continues to navigate the investment landscape, stakeholders will closely monitor its strategic decisions and financial outcomes.
