Clearwater Analytics Holdings, Inc. (NYSE:CWAN) disclosed in a recent filing that its Chief Financial Officer, James S. Cox, has sold shares of the company's stock. The transactions, which took place on July 15, 2024, involved the sale of 6,275 shares at an average price range between $18.77 and $19.03, resulting in total proceeds exceeding $200,000.
Additionally, Cox also sold 100 shares at a weighted average price of $18.9205 and disposed of 5,000 shares at a weighted average of $18.9269. Combined, these sales resulted in a total of $213,360.
The filing also reported that Cox exercised options to acquire 16,315 shares of Class A Common Stock at a price of $4.40 per share, as well as another set of options for 265 shares at the same price. These transactions are part of the executive's compensation structure and are a routine part of stock ownership for company insiders.
Furthermore, the report included mandatory disposals of 10,140 and 165 shares to cover tax liabilities, often a standard procedure following the exercising of stock options. These transactions were carried out at a price of $18.9205 per share, amounting to a total value of $194,975.
The sales were conducted under a pre-arranged Rule 10b5-1 trading plan, which allows company insiders to sell shares at predetermined times to avoid accusations of trading on non-public, material information.
Following these transactions, Cox's holdings in Clearwater Analytics have adjusted, but he remains a significant shareholder. Investors often monitor insider buying and selling as it can provide insights into the executive's view of the company's current valuation and future prospects.
Clearwater Analytics Holdings, Inc. specializes in providing prepackaged software services, and its financial health is closely watched by investors in the tech sector. The company's stock performance and insider transactions are of particular interest to those looking to gauge market sentiment and the confidence of top executives in their firm's outlook.
In other recent news, Clearwater Analytics has reported robust financial growth in Q1 2024, with a 21% increase in revenue to $102.7 million and a 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. The company's recent acquisition of Wilshire Advisors' risk performance and analytics platforms has further enhanced its capabilities. Clearwater Analytics has exceeded its revenue and EBITDA guidance for the quarter and has raised its full-year revenue and EBITDA guidance for 2024.
Oppenheimer has upgraded Clearwater Analytics stock from Perform to Outperform, setting a new price target of $25.00 for the company's shares. This upgrade follows a reassessment of the company's valuation and its anticipated success, with investor expectations now aligning with more reasonable forecasts for the company's revenue growth.
In the 2024 Annual Meeting of Stockholders, three Class III directors were elected and the appointment of KPMG LLP as the company's independent registered public accounting firm was ratified. Despite concerns about Q2 guidance due to the early go-live of a large client in Q1 impacting Q2 revenue, Clearwater Analytics maintains a strong position with a net revenue retention rate of 110% and a record high gross margin of 78%. These are the recent developments in Clearwater Analytics.
InvestingPro Insights
As investors scrutinize the recent insider selling by Clearwater Analytics Holdings, Inc.'s (NYSE:CWAN) CFO, James S. Cox, it's essential to consider the company's financial health and market performance. InvestingPro data reveals that Clearwater Analytics has a market capitalization of approximately $4.69 billion, which is a significant figure for investors gauging the company's size and market presence. Furthermore, the company's revenue growth over the last twelve months as of Q1 2024 stands at a robust 21.76%, showcasing its ability to expand its financial base in a competitive tech sector.
Despite not being profitable over the last twelve months, analysts predict that Clearwater Analytics' net income is expected to grow this year, which could signal a turning point for the company's financial performance. This aligns with the recent strong return over the last three months, where the company's stock price total return was 19.29%, reflecting investor optimism. This may offer some reassurance to investors following the CFO's stock sales.
On the valuation front, Clearwater Analytics is trading at a high Price / Book multiple of 13.0, which might suggest a premium market valuation compared to its tangible assets. This could be a point of consideration for value-focused investors. For those interested in a deeper analysis, InvestingPro offers additional insights, including 11 more InvestingPro Tips for Clearwater Analytics, which can be accessed at InvestingPro. Subscribers can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.