Clearwater Analytics (NYSE:CWAN) Releases Quarterly Earnings Results, Misses Estimates By $0.02 EPS

Clearwater Analytics (NYSE:CWAN) issued its quarterly earnings results on Wednesday. The company reported $0.14 EPS for the quarter, missing the consensus estimate of $0.16 by ($0.02), FiscalAI reports. The business 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 3.23% and a net margin of 73.74%.Clearwater Analytics’s revenue was up 77.1% compared to the same quarter last year. During the same quarter last year, the firm posted $0.14 earnings per share. Clearwater Analytics updated its FY 2025 guidance to EPS and its Q4 2025 guidance to EPS.

Clearwater Analytics Stock Performance

NYSE:CWAN traded down $1.46 during trading hours on Thursday, reaching $15.85. The stock had a trading volume of 8,603,956 shares, compared to its average volume of 3,622,788. The stock has a market cap of $4.64 billion, a P/E ratio of 9.97, a price-to-earnings-growth ratio of 4.76 and a beta of 0.69. Clearwater Analytics has a 12-month low of $15.73 and a 12-month high of $35.71. The company has a debt-to-equity ratio of 0.44, a quick ratio of 2.02 and a current ratio of 2.02. The stock has a 50 day simple moving average of $18.77 and a 200 day simple moving average of $20.81.

Insider Activity

In other Clearwater Analytics news, CEO Sandeep Sahai sold 16,592 shares of Clearwater Analytics stock in a transaction dated Tuesday, September 30th. The stock was sold at an average price of $17.68, for a total transaction of $293,346.56. Following the completion of the sale, the chief executive officer owned 913,600 shares of the company’s stock, valued at $16,152,448. The trade was a 1.78% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CRO Scott Stanley Erickson sold 4,505 shares of Clearwater Analytics stock in a transaction dated Tuesday, September 30th. The stock was sold at an average price of $17.68, for a total value of $79,648.40. Following the completion of the transaction, the executive owned 19,552 shares in the company, valued at approximately $345,679.36. This represents a 18.73% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 143,602 shares of company stock valued at $2,756,283. 3.31% of the stock is owned by insiders.

Institutional Investors Weigh In On Clearwater Analytics

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Osaic Holdings Inc. boosted its holdings in shares of Clearwater Analytics by 819.6% during the 2nd quarter. Osaic Holdings Inc. now owns 7,256 shares of the company’s stock valued at $160,000 after purchasing an additional 6,467 shares during the last quarter. Vident Advisory LLC acquired a new stake in shares of Clearwater Analytics during the second quarter worth $208,000. Integrated Wealth Concepts LLC purchased a new position in Clearwater Analytics in the first quarter valued at $208,000. M&T Bank Corp increased its stake in shares of Clearwater Analytics by 51.8% during the second quarter. M&T Bank Corp now owns 13,164 shares of the company’s stock worth $289,000 after purchasing an additional 4,492 shares in the last quarter. Finally, Lazard Asset Management LLC grew its stake in Clearwater Analytics by 13.3% during the 2nd quarter. Lazard Asset Management LLC now owns 19,913 shares of the company’s stock valued at $435,000 after acquiring an additional 2,339 shares in the last quarter. 50.10% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several research firms have weighed in on CWAN. Weiss Ratings raised Clearwater Analytics from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Friday, October 24th. Wall Street Zen cut Clearwater Analytics from a “hold” rating to a “sell” rating in a report on Saturday, October 18th. Wells Fargo & Company dropped their price target on Clearwater Analytics from $32.00 to $27.00 and set an “overweight” rating on the stock in a research report on Thursday. DA Davidson decreased their target price on Clearwater Analytics from $34.00 to $30.00 and set a “buy” rating on the stock in a report on Tuesday. Finally, UBS Group cut their target price on Clearwater Analytics from $35.00 to $30.00 and set a “buy” rating for the company in a research report on Thursday. Nine analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat, Clearwater Analytics has an average rating of “Moderate Buy” and a consensus price target of $30.78.

Clearwater Analytics announced that its board has initiated a share buyback program on Wednesday, September 3rd that permits the company to repurchase $100.00 million in shares. This repurchase authorization permits the company to purchase up to 1.7% of its shares through open market purchases. Shares repurchase programs are typically a sign that the company’s board of directors believes its stock is undervalued.

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.