Insider Subi Sethi Sells 62,482 Shares of Clearwater Analytics Holdings, Inc.

Clearwater Analytics Holdings, Inc. (NYSE:CWAN) experienced a significant insider transaction as Subi Sethi sold 62,482 shares of the company on Wednesday, February 19th. This transaction took place at an average sale price of $30.07, amounting to a total of $1,878,833.74. Post-sale, Sethi retains ownership of 144,973 shares in Clearwater Analytics, currently valued at roughly $4,359,338.11. This represents a 30.12% reduction in Sethi's stake in the company. The details of this transaction were formally disclosed in a filing with the Securities and Exchange Commission (SEC), which can be accessed via the SEC's website.

Current Stock Performance of Clearwater Analytics

On Friday, shares of Clearwater Analytics rose by $1.51 to reach $31.45, with a total of 1,373,123 shares traded, compared to an average trading volume of 2,291,453 shares. The company has a current ratio of 4.66 and a quick ratio of 4.66, indicating solid liquidity. Its debt-to-equity ratio stands at 0.10. Clearwater Analytics has established a market capitalization of $7.77 billion, a price-to-earnings (PE) ratio of 19.00, and a PE-to-growth (P/E/G) ratio of 7.43, along with a beta of 0.72. The company's stock has fluctuated between a one-year low of $15.62 and a high of $35.71.

Earnings Results Overview

On the same day that the insider transaction was reported, Clearwater Analytics released its latest earnings results. The company reported earnings per share (EPS) of $0.04 for the quarter, which fell short of analysts’ expectations of $0.11 by $0.07. The revenue during the quarter was recorded at $126.47 million, exceeding analyst estimates of $120.34 million. Clearwater Analytics managed a net margin of 93.97% and achieved a return on equity of 7.11%. Analysts forecast that Clearwater Analytics will post an EPS of 0.18 for the current year.

Analyst Recommendations and Price Target Adjustments

Various research firms have recently updated their assessments and price targets for Clearwater Analytics. Morgan Stanley upgraded the stock from an "equal weight" to an "overweight" rating, raising the price target from $30.00 to $34.00. Additionally, Wells Fargo & Company increased its price target from $35.00 to $37.00, continuing the trend of positive rating adjustments. Similarly, UBS Group revised their price target up from $36.00 to $38.00. DA Davidson changed their rating from "neutral" to "buy" while lowering the target price from $35.00 to $32.00. Lastly, JPMorgan Chase & Co. also upgraded the rating from "neutral" to "overweight" and increased the target to $33.00. Currently, one analyst recommends selling the stock, while nine have rated it as a buy, establishing a consensus rating of "Moderate Buy" with a target price of $33.60 according to MarketBeat.

Institutional Investor Activity

Recent movements among institutional investors show varying stakes in Clearwater Analytics. GAMMA Investing LLC raised its position by 57.4% in the fourth quarter, now holding 1,284 shares valued at $35,000 after acquiring 468 additional shares. Whittier Trust Co. of Nevada Inc. initiated a new stake in the company in the third quarter valued at approximately $45,000. Similarly, Arcadia Investment Management Corp MI and Financial Management Professionals Inc. both acquired new shares during the fourth quarter, contributing to the increased institutional interest. Notably, hedge funds and other institutions now hold approximately 50.10% of Clearwater Analytics stock.

Company Profile and Core Services

Clearwater Analytics Holdings, Inc. provides a Software-as-a-Service (SaaS) solution focused on automating investment data aggregation, reconciliation, accounting, and reporting. The services are aimed at insurers, investment managers, corporations, institutional investors, and government entities in the United States and globally.

Clearwater, Analytics, Stocks