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BOISE, Idaho - Clearwater Analytics (NYSE:CWAN), a $5.77 billion market cap fintech company currently rated as slightly undervalued according to InvestingPro analysis, unveiled enhancements to its Alternative Assets Solution aimed at addressing challenges in the $2.5 trillion private credit market, the company announced at its annual Connect™25 user conference.
The new capabilities focus on automating loan structures, accelerating fund research with AI, synchronizing data across stakeholders, and consolidating mortgage reporting to help institutional investors scale their private credit operations.
The solution includes four key components: Private Credit Management that integrates with accounting workflows to eliminate manual processes; Fund Research that uses AI to reduce document review cycles; Asset Sync that provides real-time data accuracy; and a Mortgage Module that unifies residential and commercial mortgage data while automating regulatory reporting.
"Private credit is no longer a niche allocation — it’s central to institutional portfolios. But the operating model hasn’t kept pace," said Kirat Singh, President of Risk and Alternative Assets at CWAN, according to the press release.
The company reports that early clients using these capabilities have experienced faster processing, fewer errors, and improved regulatory compliance. This comes as institutional allocations to private credit are projected to grow 40% over the next three years. With a robust gross profit margin of 70.56% and strong revenue growth of 36.68% in the last twelve months, Clearwater appears well-positioned to capitalize on this market expansion.
Clearwater Analytics’ platform currently supports over $10 trillion in assets globally for clients including insurers, asset managers, hedge funds, banks, corporations, and governments. InvestingPro data reveals the company maintains a healthy current ratio of 2.02, indicating strong operational efficiency. For deeper insights into CWAN’s financial health and growth prospects, including 8 additional exclusive ProTips, check out the comprehensive Pro Research Report available on InvestingPro.
The enhanced Alternative Assets Solution is now available to financial institutions worldwide. The announcement comes as private credit allocations have reportedly tripled since 2018, creating operational challenges for firms managing these investments.
In other recent news, Clearwater Analytics announced a $100 million share repurchase program, aiming to buy back approximately 5 million shares. This move is intended to counteract the dilution from recent share issuances and reduce the public float. Clearwater Analytics reported impressive second-quarter financial results, with total revenue growing 70% year-over-year and adjusted EBITDA increasing by 74%, surpassing DA Davidson’s forecasts by 5% and 10%, respectively. DA Davidson responded by lowering its price target to $34.00 but maintained a Buy rating on the stock.
Additionally, Goldman Sachs upgraded Clearwater Analytics to a Buy rating from Neutral, maintaining a $27 price target and highlighting a 37% upside potential. The investment bank expressed confidence in Clearwater’s continued 20% growth in its core business. RBC Capital also reiterated an Outperform rating with a $36.00 price target after attending Clearwater’s annual user conference. These developments reflect a generally positive outlook from analysts, with continued support for Clearwater’s growth trajectory.
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