Clearwater Analytics Holdings, Inc. (NYSE: CWAN) reported that its Chief Technology Officer Souvik Das has sold 25,000 shares of the company’s Class A common stock. The transaction occurred on July 15, 2024, with the shares sold at a weighted average price of $18.92, for a total value of more than $473,000, according to the filing.
The sale was conducted under a prearranged 10b5-1 trading plan, which allows company insiders to sell stock at predetermined times to avoid charges of insider trading. Shares sold in a range of $18.76 to $19.05, with the average price reported reflecting the weighted sales price of multiple transactions.
Following the sale, Das retains 10,453 shares of Clearwater Analytics Holdings, demonstrating continued investment in the company’s future. Incorporated in Delaware and headquartered in Boise, Idaho, the technology company specializes in providing pre-packaged software solutions.
Clearwater Analytics Holdings, Inc. has not made any other comment on the transaction. Details of the sale can be found in the most recent Form 4 filed with the U.S. Securities and Exchange Commission.
In other recent news, Clearwater Analytics posted strong financial performance. The company reported that revenue in the first quarter of 2024 increased significantly by 21% to $102.7 million, and EBITDA increased by 42.9% to $32.2 million. new customer. Clearwater Analytics also completed the acquisition of Wilshire Advisors’ risk performance and analytics platform, enhancing its capabilities and positioning the company for future growth.
Oppenheimer upgraded Clearwater Analytics stock to “outperform” from “perform”, reflecting the revised valuation and upbeat revenue growth forecast. The company also raised its full-year 2024 revenue and EBITDA guidance following a strong first quarter.
In governance news, Clearwater Analytics confirmed the election of three Class III directors at its 2024 Annual Meeting of Shareholders and the approval of KPMG LLP as the company’s independent registered public accounting firm. Despite concerns about second-quarter guidance as major customers came online early, Clearwater Analytics maintained a strong position with a net revenue retention rate of 110% and a record gross margin of 78%.
Investment Professional Insights
Following news of Clearwater Analytics Holdings, Inc. (NYSE: CWAN )’s recent insider sale, investors may be seeking further context on the company’s financial health and market performance. According to InvestingPro data, CWAN has a market capitalization of $4.69 billion, indicating that it occupies an important position in the market. The company’s revenue grew 21.76% in the last 12 months ended Q1 2024, which is a strong indication of its expansion of business operations and market coverage.
It’s worth noting that Clearwater Analytics Holdings has a high price-to-book ratio of 13.0, which may indicate 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 shares have delivered a significant return of 19.29% over the past three months, reflecting positive investor sentiment.
InvestingPro Tips highlights that CWAN expects net profit to grow this year, in line with analysts’ forecasts that the company will turn a profit within the year. This may be a factor in the technology chief’s decision to sell the stock at this time, and may be the expectation of future valuation changes. Additionally, the company holds more cash than debt on its balance sheet, and liquid assets exceed short-term debt, providing a buffer for operational flexibility and potential investments.
For investors interested in learning more about Clearwater Analytics Holdings’ financial health and future prospects, InvestingPro has additional tips, which can be accessed at https://www.investing.com/pro/CWAN. There are currently 12 additional InvestingPro tips available that are invaluable for making informed investment decisions. To get these insights, use the coupon code PRONEWS24 Enjoy up to 10% discount on annual Pro and Pro+ annual or two-year subscriptions.
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