Investors Buy Large Volume of Put Options on Clearwater Analytics (NYSE:CWAN)

Clearwater Analytics Holdings, Inc. (NYSE:CWAN) saw unusually large options trading on Thursday. Stock investors bought 17,402 put options on the company. This represents an increase of approximately 71% compared to the average volume of 10,205 put options.

Clearwater Analytics Stock Up 0.0%

Shares of CWAN opened at $23.80 on Friday. The stock’s 50-day moving average price is $23.53 and its two-hundred day moving average price is $21.62. Clearwater Analytics has a 12 month low of $15.73 and a 12 month high of $26.94. The company has a market capitalization of $7.03 billion, a PE ratio of -169.95, a PEG ratio of 3.30 and a beta of 0.64. The company has a current ratio of 1.83, a quick ratio of 1.83 and a debt-to-equity ratio of 0.40.

Insiders Place Their Bets

In other Clearwater Analytics news, CTO Souvik Das sold 88,848 shares of the stock in a transaction dated Wednesday, February 18th. The shares were sold at an average price of $23.44, for a total transaction of $2,082,597.12. Following the sale, the chief technology officer directly owned 207,132 shares in the company, valued at $4,855,174.08. This represents a 30.02% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CRO Scott Stanley Erickson sold 74,530 shares of the firm’s stock in a transaction dated Wednesday, February 18th. The shares were sold at an average price of $23.44, for a total transaction of $1,746,983.20. Following the completion of the transaction, the executive directly owned 138,630 shares in the company, valued at approximately $3,249,487.20. This represents a 34.96% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 780,842 shares of company stock valued at $18,360,889 over the last 90 days. 3.31% of the stock is owned by company insiders.

Institutional Trading of Clearwater Analytics

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Essex Investment Management Co. LLC boosted its stake in shares of Clearwater Analytics by 27.2% in the 4th quarter. Essex Investment Management Co. LLC now owns 2,298 shares of the company’s stock valued at $55,000 after purchasing an additional 492 shares during the last quarter. Mackenzie Financial Corp raised its stake in Clearwater Analytics by 3.7% during the fourth quarter. Mackenzie Financial Corp now owns 15,466 shares of the company’s stock worth $372,000 after buying an additional 545 shares during the last quarter. Cim LLC raised its stake in Clearwater Analytics by 0.8% during the third quarter. Cim LLC now owns 66,184 shares of the company’s stock worth $1,193,000 after buying an additional 557 shares during the last quarter. Hilltop National Bank lifted its holdings in Clearwater Analytics by 12.6% in the third quarter. Hilltop National Bank now owns 5,533 shares of the company’s stock valued at $100,000 after buying an additional 619 shares during the period. Finally, EverSource Wealth Advisors LLC boosted its position in Clearwater Analytics by 211.1% during the fourth quarter. EverSource Wealth Advisors LLC now owns 1,061 shares of the company’s stock valued at $26,000 after acquiring an additional 720 shares during the last quarter. Institutional investors and hedge funds own 50.10% of the company’s stock.

Trending Headlines about Clearwater Analytics

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

• Neutral Sentiment: Analysts maintain a consensus “Hold” rating on CWAN, which signals limited near-term analyst-driven upside. Analyst Coverage
• Neutral Sentiment: Despite the recent sales, senior executives still retain large stakes (for example, CEO Sandeep Sahai remains a >1.4M-share holder), which can partially mitigate market concern that insiders are exiting completely. CEO SEC Filing
• Negative Sentiment: Multiple senior executives sold shares the same day (Mar. 31): CEO Sandeep Sahai (51,967), Subi Sethi (19,858), CTO Souvik Das (14,686), CFO James S. Cox (21,631) and CRO Scott Erickson (18,790) — about 126,932 shares total, roughly $3.0M at the reported ~$23.80 average price. Clustered insider selling by top officers often weighs on sentiment because it can be read as insiders taking money off the table. Insider Sale Filings
• Negative Sentiment: Unusually heavy put-option buying was reported (17,402 puts, a ~71% increase vs. typical daily put volume), indicating some traders are positioning for downside or hedging existing long exposure. Elevated put activity can add short-term selling pressure and increase volatility.
• Negative Sentiment: Scott+Scott (plaintiffs’ firm) launched an investigation into whether Clearwater’s directors breached fiduciary duties related to the proposed buyout by Warburg Pincus and Permira. Legal scrutiny of the sale process can delay the transaction, create uncertainty around deal terms/timing, and add potential liability — all negative catalysts for the stock. Investor Alert

Wall Street Analyst Weigh In

CWAN has been the topic of several analyst reports. Warburg Research set a $24.55 price target on shares of Clearwater Analytics in a research report on Monday, December 22nd. Loop Capital downgraded shares of Clearwater Analytics from a “buy” rating to a “hold” rating and lowered their price objective for the company from $25.00 to $24.55 in a research report on Monday, December 22nd. DA Davidson restated a “neutral” rating and set a $24.55 target price on shares of Clearwater Analytics in a research note on Thursday, February 19th. William Blair reaffirmed a “market perform” rating on shares of Clearwater Analytics in a report on Monday, December 22nd. Finally, Royal Bank Of Canada reissued a “sector perform” rating and set a $24.55 target price (down from $36.00) on shares of Clearwater Analytics in a research note on Wednesday, February 25th. Three analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company has an average rating of “Hold” and a consensus target price of $26.17.

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.