Clearwater Analytics Holdings Inc. (NYSE: CWAN) stock jumped 2.40% on Thursday to $19.17 against a previous-day closing price of $18.72. With 1.13 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.73 million shares. During the session, the Software – Application company that operates in wider Technology sector, reached to the highest price of $19.23 whereas the lowest price it dropped to was $18.72. The 52-week range on CWAN shows that it touched its highest point at $20.00 and its lowest point at $13.02 during that stretch. It currently has a 1-year price target of $21.10. Beta for the stock currently stands at 0.42.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of CWAN was down-trending over the past week, with a drop of -1.24%, but this was up by 12.96% over a month. Three-month performance surged to 17.25% while six-month performance rose 36.44%. The stock gained 19.89% in the past year, while it has gained 2.24% so far this year. A look at the trailing 12-month EPS for CWAN yields -0.11 with Next year EPS estimates of 0.37. For the next quarter, that number is 0.07. This implies an EPS growth rate of 6.90% for this year and 21.90% for next year.
Float and Shares Shorts:
At present, 198.05 million CWAN shares are outstanding with a float of 51.55 million shares on hand for trading. On Aug 30, 2023, short shares totaled 4.02 million, which was 2.00% higher than short shares on Jul 30, 2023. In addition to Mr. Sandeep Sahai as the firm’s CEO & Director, Mr. James S. Cox Jr. serves as its Chief Financial Officer.
Through their ownership of 150.82% of CWAN’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 9.26% of CWAN, in contrast to 62.32% held by mutual funds. Shares owned by individuals account for 49.32%. As the largest shareholder in CWAN with 10.61% of the stake, The Vanguard Group, Inc. holds 8,214,189 shares worth 8,214,189. A second-largest stockholder of CWAN, Durable Capital Partners LP, holds 7,664,601 shares, controlling over 9.90% of the firm’s shares. Wasatch Advisors, Inc. is the third largest shareholder in CWAN, holding 6,477,101 shares or 8.37% stake. With a 4.87% stake in CWAN, the Alger Funds – Small Cap Focus Fun is the largest stakeholder. A total of 3,771,754 shares are owned by the mutual fund manager. The Wasatch Core Growth Fund, which owns about 4.85% of CWAN stock, is the second-largest Mutual Fund holder. It holds 3,754,775 shares valued at 64.69 million. Conestoga Small Cap Fund holds 4.66% of the stake in CWAN, owning 3,607,363 shares worth 62.15 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, CWAN reported revenue of $73.41M and operating income of $1.13M. The EBITDA in the recently reported quarter was $2.29M and diluted EPS was -$0.01.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for CWAN since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With CWAN analysts setting a high price target of $25.00 and a low target of $16.00, the average target price over the next 12 months is $21.40. Based on these targets, CWAN could surge 30.41% to reach the target high and fall by -16.54% to reach the target low. Reaching the average price target will result in a growth of 11.63% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.
Summary of Insider Activity:
Insiders traded CWAN stock several times over the past three months with 7 Buys and 5 Sells. In these transactions, 80,046 shares were bought while 72,025 shares were sold. The number of buy transactions has increased to 76 while that of sell transactions has risen to 165 over the past year. The total number of shares bought during that period was 2,178,958 while 3,616,528 shares were sold.