Clearwater Analytics’ (CWAN) Outperform Rating Reaffirmed at Royal Bank Of Canada

Royal Bank Of Canada restated their outperform rating on shares of Clearwater Analytics (NYSE:CWAN) in a research report sent to investors on Monday morning, Marketbeat reports. They currently have a $36.00 price target on the stock.

Several other equities analysts have also recently issued reports on the company. William Blair reiterated a “market perform” rating on shares of Clearwater Analytics in a report on Monday. UBS Group cut their target price on shares of Clearwater Analytics from $35.00 to $30.00 and set a “buy” rating on the stock in a research report on Thursday, November 6th. Wall Street Zen cut shares of Clearwater Analytics from a “hold” rating to a “sell” rating in a research report on Saturday, November 22nd. DA Davidson restated a “buy” rating and issued a $30.00 price objective on shares of Clearwater Analytics in a report on Wednesday, December 10th. Finally, Oppenheimer cut shares of Clearwater Analytics from an “outperform” rating to a “market perform” rating in a research note on Monday. Eight research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $28.65.

Clearwater Analytics Price Performance

CWAN opened at $24.07 on Monday. The company has a debt-to-equity ratio of 0.42, a current ratio of 1.97 and a quick ratio of 1.97. The stock has a market capitalization of $7.04 billion, a P/E ratio of 15.73, a price-to-earnings-growth ratio of 5.86 and a beta of 0.67. The company’s 50 day simple moving average is $19.99 and its 200-day simple moving average is $20.30. Clearwater Analytics has a one year low of $15.73 and a one year high of $32.00.

Clearwater Analytics (NYSE:CWAN) last posted its quarterly earnings data on Wednesday, November 5th. The company reported $0.14 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.16 by ($0.02). The firm had revenue of $205.11 million for the quarter, compared to analyst estimates of $203.66 million. Clearwater Analytics had a return on equity of 2.77% and a net margin of 61.28%.The firm’s quarterly revenue was up 77.1% compared to the same quarter last year. During the same period in the prior year, the company posted $0.14 EPS. Sell-side analysts anticipate that Clearwater Analytics will post 0.18 earnings per share for the current fiscal year.

Clearwater Analytics declared that its Board of Directors has initiated a share buyback plan on Wednesday, September 3rd that permits the company to buyback $100.00 million in shares. This buyback authorization permits the company to reacquire up to 1.7% of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s board believes its shares are undervalued.

Insider Activity

In other Clearwater Analytics news, CTO Souvik Das sold 10,000 shares of Clearwater Analytics stock in a transaction dated Monday, December 8th. The stock was sold at an average price of $21.59, for a total transaction of $215,900.00. Following the transaction, the chief technology officer directly owned 96,186 shares in the company, valued at approximately $2,076,655.74. The trade was a 9.42% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO James S. Cox sold 7,425 shares of the business’s stock in a transaction dated Wednesday, December 17th. The shares were sold at an average price of $22.00, for a total value of $163,350.00. Following the completion of the transaction, the chief financial officer directly owned 328,983 shares of the company’s stock, valued at approximately $7,237,626. The trade was a 2.21% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 120,727 shares of company stock worth $2,402,598 over the last three months. Company insiders own 3.31% of the company’s stock.

Hedge Funds Weigh In On Clearwater Analytics

Institutional investors have recently modified their holdings of the business. Vanguard Group Inc. grew its position in shares of Clearwater Analytics by 21.9% in the 3rd quarter. Vanguard Group Inc. now owns 33,261,349 shares of the company’s stock valued at $599,370,000 after purchasing an additional 5,967,798 shares during the period. Wellington Management Group LLP lifted its stake in Clearwater Analytics by 108.7% in the third quarter. Wellington Management Group LLP now owns 17,793,701 shares of the company’s stock valued at $320,642,000 after buying an additional 9,268,950 shares in the last quarter. Wasatch Advisors LP boosted its holdings in shares of Clearwater Analytics by 3.0% in the second quarter. Wasatch Advisors LP now owns 9,567,391 shares of the company’s stock valued at $209,813,000 after buying an additional 274,664 shares during the period. Bamco Inc. NY boosted its holdings in shares of Clearwater Analytics by 25.9% in the third quarter. Bamco Inc. NY now owns 7,675,038 shares of the company’s stock valued at $138,304,000 after buying an additional 1,580,323 shares during the period. Finally, Blair William & Co. IL increased its position in shares of Clearwater Analytics by 83.5% during the third quarter. Blair William & Co. IL now owns 7,134,647 shares of the company’s stock worth $128,566,000 after acquiring an additional 3,245,986 shares in the last quarter. Institutional investors own 50.10% of the company’s stock.

Clearwater Analytics News Summary

Here are the key news stories impacting Clearwater Analytics this week:

• Positive Sentiment: Definitive take‑private agreement — Permira & Warburg Pincus-led group to acquire Clearwater for ~$8.4B at $24.55/share (cash), a material premium that explains the stock’s upward move. Clearwater Analytics to Be Acquired for $8.4 Billion
• Positive Sentiment: Analyst reaction highlights potential undervaluation — some analysts (including RBC commentary) say the bid may underprice Clearwater relative to longer-term value and assigned higher price targets, supporting upside expectations for shareholders or competing bids. RBC: We Believe the Deal Undervalues Clearwater
• Positive Sentiment: Surge in bullish options activity — unusually large call buying indicates speculative and institutional positioning ahead of, or in response to, the deal announcement, amplifying intraday price moves.
• Neutral Sentiment: Potential “go‑shop” / solicitation window and interest from other bidders has been mentioned in market coverage — this raises the chance of competing bids (positive if higher offers emerge) but also adds uncertainty around timing and outcome. CWAN stock surges pre-market on $8.4B buyout offer
• Neutral Sentiment: Mixed analyst ratings — some firms reaffirm ratings without changing guidance (e.g., William Blair market perform), so not all analysts view the transaction as an immediate clear win for public shareholders.
• Negative Sentiment: Shareholder-law‑firm investigations (Halper Sadeh, The Ademi Firm) allege potential fiduciary breaches or unfair pricing — these probes can lead to contestation, litigation, regulatory scrutiny, or renegotiation that could delay the deal or affect final consideration. Halper Sadeh LLC Encourages CWAN Shareholders to Contact the Firm
• Negative Sentiment: Additional shareholder alert from The Ademi Firm raises similar fairness concerns and could increase legal complexity around closing. Shareholder Alert: The Ademi Firm Investigates Clearwater Transaction

About Clearwater Analytics

Clearwater Analytics LLC is a global provider of web-based investment portfolio accounting, reporting, and analytics solutions. The company’s software-as-a-service platform automates complex processes involved in investment data aggregation, reconciliation, valuation, and regulatory reporting. Serving institutional investors—including insurers, asset managers, corporations, government entities, and asset owners—Clearwater Analytics enables clients to optimize performance visibility, risk management, and operational efficiency.

Founded in 2004 and headquartered in Boise, Idaho, Clearwater Analytics has grown its global footprint with offices across North America, Europe, and the Asia-Pacific region.