Clearwater Analytics Holdings, Inc. (NYSE:CWAN) has reported that its Chief Technology Officer, Souvik Das, has sold 25,000 shares of the company's Class A Common Stock. According to the filing, the transaction occurred on July 15, 2024, and the shares were sold at a weighted average price of $18.92, totaling over $473,000.
The sale was conducted under a pre-arranged 10b5-1 trading plan, which allows company insiders to sell shares at predetermined times to avoid accusations of insider trading. The prices at which the shares were sold ranged from $18.76 to $19.05, with the reported average price reflecting the weighted sales price across the multiple trades.
After the sale, Das still retains 10,453 shares of Clearwater Analytics Holdings, indicating a continued investment in the company's future. The technology firm, which is incorporated in Delaware and headquartered in Boise, Idaho, specializes in providing prepackaged software solutions.
Clearwater Analytics Holdings, Inc. has not made any additional comments on the transaction. The sale is detailed in the latest Form 4 filing with the Securities and Exchange Commission.
In other recent news, Clearwater Analytics has exhibited robust financial performance. The company reported a significant 21% increase in revenue, reaching $102.7 million, and a notable 42.9% rise in EBITDA to $32.2 million in Q1 2024. These recent developments are attributed to low churn rates, high net promoter scores, and the successful addition of new clients. Clearwater Analytics also completed the acquisition of Wilshire Advisors' risk performance and analytics platforms, enhancing its capabilities and positioning the company for future growth.
Oppenheimer has upgraded Clearwater Analytics stock from Perform to Outperform, reflecting an adjusted valuation and optimistic revenue growth forecasts. The company has also adjusted its full-year revenue and EBITDA guidance for 2024 upwards, following its strong Q1 performance.
In governance news, Clearwater Analytics confirmed the election of three Class III directors and the ratification of KPMG LLP as the company's independent registered public accounting firm at the 2024 Annual Meeting of Stockholders. Despite concerns about Q2 guidance due to the early go-live of a large client, Clearwater Analytics maintains a strong position with a net revenue retention rate of 110% and a record high gross margin of 78%.
InvestingPro Insights
Amid the news of Clearwater Analytics Holdings, Inc.'s (NYSE:CWAN) recent insider stock sale, investors may be seeking further context on the company's financial health and market performance. InvestingPro data reveals that CWAN holds a market capitalization of $4.69 billion, indicating a significant presence in the market. The company's revenue has grown by 21.76% over the last twelve months as of Q1 2024, a strong indicator of its expanding business operations and market reach.
Notably, Clearwater Analytics Holdings is trading at a high Price / Book multiple of 13.0, which could suggest that the market has high expectations for the company's future growth or that its assets are highly valued relative to its share price. Additionally, the company's stock has experienced a notable return of 19.29% over the last three months, reflecting positive investor sentiment.
InvestingPro Tips highlight that CWAN is expected to see net income growth this year, aligning with analyst predictions for the company to turn profitable within the year. This could be a factor in the Chief Technology Officer's decision to sell shares at this time, possibly anticipating future valuation changes. Moreover, the company holds more cash than debt on its balance sheet and liquid assets exceed short-term obligations, providing a cushion for operational flexibility and potential investments.
For investors interested in a deeper dive into Clearwater Analytics Holdings' financials and future prospects, InvestingPro offers additional tips that can be accessed at https://www.investing.com/pro/CWAN. There are currently 12 additional InvestingPro Tips available, which could be invaluable for making informed investment decisions. To gain access to these insights, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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