Clearwater Analytics (NYSE:CWAN) Hits New 52-Week Low Following Weak Earnings

Shares of Clearwater Analytics Holdings, Inc. (NYSE:CWAN) hit a new 52-week low during trading on Thursday following a weaker than expected earnings announcement. The stock traded as low as $16.12 and last traded at $16.2910, with a volume of 359850 shares traded. The stock had previously closed at $17.31.

The company reported $0.14 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.16 by ($0.02). Clearwater Analytics had a net margin of 73.74% and a return on equity of 3.23%. The business had revenue of $205.11 million for the quarter, compared to analysts’ expectations of $203.66 million. During the same period last year, the firm posted $0.14 earnings per share. Clearwater Analytics’s quarterly revenue was up 77.1% on a year-over-year basis. Clearwater Analytics has set its FY 2025 guidance at EPS. Q4 2025 guidance at EPS.

Clearwater Analytics declared that its board has initiated a stock buyback plan on Wednesday, September 3rd that allows the company to buyback $100.00 million in outstanding shares. This buyback authorization allows the company to repurchase up to 1.7% of its shares through open market purchases. Shares buyback plans are usually a sign that the company’s board believes its shares are undervalued.

Analyst Upgrades and Downgrades

CWAN has been the topic of several research analyst reports. Weiss Ratings raised Clearwater Analytics from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Friday, October 24th. Zacks Research raised Clearwater Analytics from a “strong sell” rating to a “hold” rating in a research note on Thursday, September 4th. DA Davidson reduced their price target on Clearwater Analytics from $34.00 to $30.00 and set a “buy” rating on the stock in a research note on Tuesday. The Goldman Sachs Group raised Clearwater Analytics from a “neutral” rating to a “buy” rating and set a $27.00 price target on the stock in a research note on Monday, August 11th. Finally, Wall Street Zen cut Clearwater Analytics from a “hold” rating to a “sell” rating in a research note on Saturday, October 18th. Nine equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat.com, Clearwater Analytics currently has a consensus rating of “Moderate Buy” and a consensus target price of $32.22.

Insider Transactions at Clearwater Analytics

In other news, CTO Souvik Das sold 5,327 shares of the stock in a transaction on Tuesday, September 30th. The stock was sold at an average price of $17.68, for a total value of $94,181.36. Following the sale, the chief technology officer directly owned 136,066 shares of the company’s stock, valued at approximately $2,405,646.88. This represents a 3.77% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO James S. Cox sold 11,275 shares of the stock in a transaction on Wednesday, October 15th. The stock was sold at an average price of $17.98, for a total value of $202,724.50. Following the completion of the sale, the chief financial officer directly owned 338,983 shares in the company, valued at approximately $6,094,914.34. This represents a 3.22% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 143,602 shares of company stock valued at $2,756,283. 3.31% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of CWAN. Teacher Retirement System of Texas lifted its holdings in shares of Clearwater Analytics by 31.5% during the first quarter. Teacher Retirement System of Texas now owns 105,849 shares of the company’s stock valued at $2,837,000 after purchasing an additional 25,356 shares in the last quarter. Brown Advisory Inc. lifted its holdings in shares of Clearwater Analytics by 15,661.6% during the first quarter. Brown Advisory Inc. now owns 1,407,040 shares of the company’s stock valued at $37,709,000 after purchasing an additional 1,398,113 shares in the last quarter. Cerity Partners LLC lifted its holdings in shares of Clearwater Analytics by 7.3% during the first quarter. Cerity Partners LLC now owns 11,598 shares of the company’s stock valued at $311,000 after purchasing an additional 793 shares in the last quarter. Bosman Wealth Management LLC bought a new position in shares of Clearwater Analytics during the first quarter valued at $1,105,000. Finally, Xponance Inc. lifted its holdings in shares of Clearwater Analytics by 10.6% during the first quarter. Xponance Inc. now owns 14,085 shares of the company’s stock valued at $377,000 after purchasing an additional 1,354 shares in the last quarter. 50.10% of the stock is owned by institutional investors.

Clearwater Analytics Stock Performance

The stock has a market capitalization of $4.86 billion, a P/E ratio of 10.28, a P/E/G ratio of 4.76 and a beta of 0.69. The company has a quick ratio of 2.02, a current ratio of 2.02 and a debt-to-equity ratio of 0.44. The business has a fifty day moving average price of $18.77 and a 200-day moving average price of $20.81.

About Clearwater Analytics

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.