Clearwater Analytics Holdings, Inc. (NYSE:CWAN) reported a series of transactions by its Chief Financial Officer, James S. Cox, according to a recent SEC filing. On June 10, 2024, Cox engaged in both buying and selling of the company's Class A common stock.
The filing revealed that Cox sold a total of 6,275 shares at a weighted average price of $20.1012, resulting in proceeds of approximately $126,135. This transaction was executed under a pre-arranged Rule 10b5-1 trading plan, which allows company insiders to set up a predetermined plan to sell stocks at a specified time.
In addition to the sale, Cox also acquired 15,934 shares of Class A common stock at a price of $4.40 per share, totaling $70,109. This transaction was coded as an "M" transaction, typically indicating a purchase of shares at a set exercise price related to stock options or similar securities.
Furthermore, the CFO disposed of 9,659 shares as part of a transaction to cover tax liabilities, often referred to as a "net exercise," at the same price of $20.1012 per share, which amounted to $194,157.
The filing did not include any transactions for derivative securities. The activity comes as part of the regular disclosure by company executives and insiders of their trading activities in the company's stock.
Investors and market watchers often look at insider buying and selling as a signal of the executives' confidence in the company's prospects. However, trades under a 10b5-1 plan are often scheduled in advance to avoid any potential accusations of insider trading based on non-public information.
Clearwater Analytics Holdings, Inc., based in Boise, Idaho, specializes in services related to prepackaged software. The company's stock is listed under the ticker CWAN. Following these transactions, investors will be watching to see how these insider moves might reflect on the company's performance and stock valuation in the future.
In other recent news, Clearwater Analytics showed robust growth in its Q1 2024 results, with a 21% year-over-year increase in revenue to $102.7 million and a significant 42.9% rise in EBITDA to $32.2 million. This growth is attributed to low churn rates, high net promoter scores, and the successful addition of new clients. A noteworthy development is Clearwater's acquisition of Wilshire Advisors' risk performance and analytics platforms, which has enhanced its capabilities and positions the company for continued expansion in the risk and performance space. The company also reported a net revenue retention rate of 110% and a record high gross margin of 78%. Clearwater Analytics has exceeded its revenue and EBITDA guidance for the quarter and raised its full-year revenue and EBITDA guidance for 2024. These are recent developments that indicate a promising future for the company.
InvestingPro Insights
Clearwater Analytics Holdings, Inc. (NYSE:CWAN) has been making headlines with insider trading activity, but what does the data say about the company's financial health and market performance? According to InvestingPro data, Clearwater Analytics has a market capitalization of $4.94 billion, signaling a substantial presence in its sector. Despite the company's negative P/E ratio of -240.85, reflecting challenges in profitability, revenue has grown by 21.76% over the last twelve months as of Q1 2024, indicating potential for future earnings improvements.
An InvestingPro Tip highlights that analysts expect net income to grow this year, which could be a sign of the company turning a corner towards profitability. Additionally, the company's strong return over the last three months, with an 18.72% price total return, suggests that investors have been recognizing potential value in the stock. This is further supported by the fact that Clearwater Analytics operates with a moderate level of debt and its liquid assets exceed short-term obligations, providing financial stability.
For investors seeking a deeper analysis, there are more InvestingPro Tips available, including insights on earnings revisions, stock volatility, and valuation multiples. With these tools, investors can make more informed decisions about their investments in Clearwater Analytics. To access these additional tips, visit https://www.investing.com/pro/CWAN and consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
As the CFO's recent trading activities under a 10b5-1 plan draw attention, it's crucial for investors to look beyond insider transactions and understand the broader financial context in which these trades occur. The metrics and tips provided by InvestingPro can help in painting a clearer picture of Clearwater Analytics' current market standing and future potential.
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