Wells Fargo & Company has revised its price target for Clearwater Analytics (NYSE:CWAN) from $32.00 to $27.00, as detailed in a research report released on Thursday. Despite this adjustment, Wells Fargo maintains an “overweight” rating on the stock, indicating a positive outlook compared to the market.
Several other analysts have recently evaluated Clearwater Analytics. The Royal Bank Of Canada reaffirmed its “outperform” rating and set a target price of $36.00 on September 17, 2023. Weiss Ratings upgraded the company from a “sell (d+)” to a “hold (c-)” rating on October 24, 2023. Conversely, DA Davidson lowered its price target from $34.00 to $30.00, while maintaining a “buy” rating in a report released on Tuesday. Wall Street Zen downgraded the stock from “hold” to “sell” on October 18, 2023. In a notable shift, The Goldman Sachs Group upgraded Clearwater Analytics from “neutral” to “buy,” placing a target price of $27.00 on the stock on August 11, 2023.
Overall, nine investment analysts have rated Clearwater Analytics as a “buy,” while two have issued “hold” ratings. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $30.56.
Recent Earnings Performance
Clearwater Analytics released its quarterly earnings on November 5, 2023, reporting earnings per share (EPS) of $0.14. This figure fell short of the consensus estimate of $0.16 by $0.02. The company’s return on equity stood at 2.77%, with a net margin of 61.28%. Revenue for the quarter reached $205.11 million, surpassing the consensus estimate of $203.66 million and representing a 77.1% year-over-year increase.
Looking ahead, Clearwater Analytics has guided for a fiscal year 2025 EPS of $0.18.
On September 3, 2023, Clearwater Analytics announced a share repurchase program, allowing the company to buy back up to $100.00 million in shares. This program permits the repurchase of approximately 1.7% of its shares in open market transactions, often seen as a signal that the board considers the shares to be undervalued.
Insider Transactions and Hedge Fund Activity
In related developments, CEO Sandeep Sahai sold 16,592 shares of the company on September 30, 2023, at an average price of $17.68, totaling $293,346.56. Following this transaction, Sahai retains 913,600 shares valued at approximately $16.15 million. This sale represented a 1.78% decrease in his ownership stake.
Additionally, Chief Revenue Officer Scott Stanley Erickson sold 4,505 shares on the same day for $79,648.40. After the sale, he directly owns 19,552 shares valued at $345,679.36, marking an 18.73% reduction in his position. In the past 90 days, insiders have sold a total of 143,602 shares, amounting to $2,756,283, with insiders currently holding 3.31% of the company’s stock.
Several hedge funds have also made adjustments to their positions in Clearwater Analytics. For instance, Apollon Wealth Management LLC increased its stake by 3.9% in the first quarter, now owning 12,341 shares valued at $331,000. Other firms, including Redwood Investments LLC and Hilltop National Bank, have also raised their holdings in the company.
Currently, institutional investors and hedge funds collectively own 50.10% of Clearwater Analytics.
Clearwater Analytics provides a Software-as-a-Service (SaaS) platform that automates investment data aggregation, reconciliation, accounting, and reporting services for a diverse clientele, including insurers, investment managers, corporations, institutional investors, and governmental entities, both in the United States and internationally.
