Clearwater Analytics (NYSE:CWAN) Shares Gap Up Following Strong Earnings

Clearwater Analytics Holdings, Inc. (NYSE:CWAN)’s share price gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $28.58, but opened at $32.86. Clearwater Analytics shares last traded at $33.85, with a volume of 508,491 shares traded.

The company reported $0.05 earnings per share for the quarter, topping analysts’ consensus estimates of $0.03 by $0.02. The company had revenue of $115.83 million during the quarter, compared to analyst estimates of $113.37 million. Clearwater Analytics had a negative net margin of 1.14% and a positive return on equity of 3.55%.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on CWAN. Wells Fargo & Company lifted their price objective on shares of Clearwater Analytics from $22.00 to $23.00 and gave the company an “overweight” rating in a report on Thursday, August 1st. Oppenheimer raised their target price on shares of Clearwater Analytics from $25.00 to $31.00 and gave the company an “outperform” rating in a research note on Monday, October 7th. Piper Sandler upped their target price on Clearwater Analytics from $23.00 to $28.00 and gave the company a “neutral” rating in a research report on Thursday. JPMorgan Chase & Co. raised Clearwater Analytics from a “neutral” rating to an “overweight” rating and lifted their price target for the stock from $23.00 to $33.00 in a research report on Thursday. Finally, Royal Bank of Canada lifted their target price on Clearwater Analytics from $25.00 to $28.00 and gave the stock an “outperform” rating in a report on Wednesday, September 18th. Two investment analysts have rated the stock with a hold rating and seven have issued a buy rating to the company. According to data from MarketBeat, Clearwater Analytics has an average rating of “Moderate Buy” and a consensus price target of $27.67.

Insider Buying and Selling

In related news, Director Galibier Purchaser, Llc sold 1,784,316 shares of Clearwater Analytics stock in a transaction dated Monday, August 26th. The stock was sold at an average price of $24.18, for a total value of $43,144,760.88. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. In other news, CFO James S. Cox sold 18,700 shares of Clearwater Analytics stock in a transaction that occurred on Tuesday, October 15th. The stock was sold at an average price of $26.16, for a total value of $489,192.00. Following the sale, the chief financial officer now directly owns 224,044 shares of the company’s stock, valued at $5,860,991.04. The trade was a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Galibier Purchaser, Llc sold 1,784,316 shares of the stock in a transaction on Monday, August 26th. The shares were sold at an average price of $24.18, for a total value of $43,144,760.88. The disclosure for this sale can be found here. Over the last three months, insiders have sold 1,864,693 shares of company stock valued at $45,128,342. Corporate insiders own 3.46% of the company’s stock.

Institutional Investors Weigh In On Clearwater Analytics

A number of large investors have recently modified their holdings of the business. Advisors Asset Management Inc. grew its stake in Clearwater Analytics by 268.8% during the 1st quarter. Advisors Asset Management Inc. now owns 1,693 shares of the company’s stock valued at $30,000 after acquiring an additional 1,234 shares in the last quarter. Whittier Trust Co. of Nevada Inc. acquired a new position in Clearwater Analytics during the third quarter worth $45,000. Financial Management Professionals Inc. acquired a new position in Clearwater Analytics during the third quarter worth $58,000. Benjamin F. Edwards & Company Inc. increased its stake in shares of Clearwater Analytics by 124.6% in the 2nd quarter. Benjamin F. Edwards & Company Inc. now owns 4,372 shares of the company’s stock worth $81,000 after acquiring an additional 2,425 shares during the last quarter. Finally, Exchange Traded Concepts LLC purchased a new position in shares of Clearwater Analytics during the 3rd quarter worth $117,000. Hedge funds and other institutional investors own 50.10% of the company’s stock.

Clearwater Analytics Stock Performance

The company has a debt-to-equity ratio of 0.11, a quick ratio of 4.78 and a current ratio of 4.78. The firm’s 50-day moving average price is $25.48 and its two-hundred day moving average price is $21.78. The stock has a market cap of $8.34 billion, a price-to-earnings ratio of -1,429.50, a PEG ratio of 9.53 and a beta of 0.61.

Clearwater Analytics Company Profile

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.