Wells Fargo & Company has adjusted its price target for Clearwater Analytics (NYSE:CWAN) from $32.00 to $27.00, as outlined in a research report issued on Thursday. The bank maintains an overweight rating on the stock, reflecting a positive outlook despite the lowered target. This revision comes amid a broader analysis from various financial institutions regarding Clearwater Analytics’ stock performance.
Several other analysts have also weighed in on the company’s future. On September 17, the Royal Bank of Canada reaffirmed its “outperform” rating while setting a target price of $36.00. Weiss Ratings upgraded Clearwater Analytics from a “sell (d+)” to a “hold (c-)” rating on October 24. Meanwhile, DA Davidson adjusted its price target down from $34.00 to $30.00, maintaining a “buy” rating. On October 18, Wall Street Zen downgraded the stock from a “hold” to a “sell” rating. Earlier in August, The Goldman Sachs Group raised its recommendation from “neutral” to “buy” with a target price of $27.00.
Currently, nine investment analysts have rated Clearwater Analytics with a Buy rating, while two have assigned a Hold rating. According to data from MarketBeat, the stock has an average rating of “Moderate Buy,” accompanied by a consensus target price of $30.56.
Quarterly Earnings and Financial Performance
Clearwater Analytics recently announced its quarterly earnings on November 5, revealing an earnings per share (EPS) of $0.14. This figure fell short of the consensus estimate of $0.16 by $0.02. The company reported a return on equity of 2.77% and a substantial net margin of 61.28%. Revenue for the quarter was $205.11 million, slightly above the consensus estimate of $203.66 million. This marks a 77.1% increase in quarterly revenue compared to the same period last year.
Looking ahead, Clearwater Analytics has set guidance for fiscal year 2025, forecasting an EPS of $0.18 for the current year.
In a strategic move, the board of Clearwater Analytics approved a share repurchase program on September 3, allowing the company to buy back $100 million worth of shares. This repurchase authorization enables the company to acquire up to 1.7% of its shares through open market purchases, indicating a belief by the board that the shares are undervalued.
Insider Activity and Institutional Holdings
In related developments, CEO Sandeep Sahai sold 16,592 shares of Clearwater Analytics on September 30, at an average price of $17.68, totaling approximately $293,346.56. Despite this sale, Sahai retains 913,600 shares, valued at around $16,152,448, representing a 1.78% decrease in his ownership stake. The transaction was disclosed in a legal filing with the U.S. Securities and Exchange Commission (SEC).
Additionally, Chief Revenue Officer Scott Stanley Erickson sold 4,505 shares on the same day for a total of $79,648.40, reflecting an 18.73% reduction in his position. Over the past 90 days, insiders have sold 143,602 shares valued at $2,756,283, with insiders currently owning 3.31% of the stock.
Hedge funds have also been active in adjusting their positions in Clearwater Analytics. Apollon Wealth Management LLC increased its stake by 3.9% in the first quarter, now holding 12,341 shares valued at $331,000. Redwood Investments LLC raised its holdings by 0.8%, owning 74,651 shares worth $2,001,000. Hilltop National Bank boosted its stake by 12.6% in the third quarter, now holding 5,533 shares valued at $100,000. Other notable increases include Essex Investment Management Co. LLC and Bessemer Group Inc., with both firms significantly enhancing their positions.
Currently, institutional investors and hedge funds collectively own approximately 50.10% of Clearwater Analytics stock, indicating strong institutional interest in the company.
Clearwater Analytics provides a Software-as-a-Service (SaaS) solution for automated investment data aggregation, reconciliation, accounting, and reporting services to a diverse client base that includes insurers, investment managers, corporations, institutional investors, and government entities, both in the United States and internationally.
