Clearwater Analytics CFO Jim Cox sells $3.06 million in stock

Published 21/02/2025, 16:46
Clearwater Analytics CFO Jim Cox sells $3.06 million in stock

Jim Cox, the Chief Financial Officer of Clearwater Analytics Holdings , Inc. (NYSE:CWAN), recently executed a series of stock transactions involving the company’s Class A Common Stock. According to a filing with the Securities and Exchange Commission, Cox sold shares worth approximately $3.06 million on February 19, 2025. The shares were sold at a price of $30.07 each. The transaction comes as CWAN’s stock has shown remarkable strength, delivering a 51.8% return over the past year, with the current share price at $31.49.

The sale involved a total of 101,808 shares, which were sold to cover tax withholding obligations associated with the vesting of performance stock units (PSUs). These PSUs had vested based on Clearwater Analytics’ revenue growth performance in 2024, which reached an impressive 22.7%. The transactions were part of a "sell to cover" strategy mandated by the company, not a discretionary sale by Cox. According to InvestingPro data, the company maintains a strong financial position with a current ratio of 4.99, indicating robust liquidity.

In addition to the sales, Cox acquired shares through the vesting of additional PSUs. The newly acquired shares were also based on performance criteria related to revenue growth. Following these transactions, Cox holds 363,502 shares of Clearwater Analytics directly. With a market capitalization of $6.69 billion and a highly favorable analyst consensus rating, CWAN’s outlook appears promising, though InvestingPro analysis suggests the stock may be trading above its Fair Value.

In other recent news, Clearwater Analytics Holdings has reported strong financial results for the fourth quarter of 2024. The company achieved an earnings per share (EPS) of $0.13, surpassing Wall Street’s forecast of $0.11, and reported revenue of $126.5 million, exceeding the anticipated $120.39 million. Clearwater’s revenue grew by 28% year-over-year, with full-year revenue reaching $451.8 million, a 22.7% increase from the previous year. The company’s Annual Recurring Revenue (ARR) rose by 25.3% to $474.9 million, and its Net Revenue Retention (NRR) rate improved to 116%, marking a significant achievement as it reached its fiscal year 2025 exit goal a year early.

In terms of analyst ratings, DA Davidson reiterated a Buy rating on Clearwater with a $32 price target, highlighting the company’s solid growth trajectory and optimistic future guidance. Meanwhile, Piper Sandler upgraded Clearwater’s stock rating from Neutral to Overweight and raised the price target from $28 to $36, citing the company’s strong fourth-quarter results and the strategic acquisition of Enfusion. Piper Sandler views the merger with Enfusion as a strong value proposition that could enhance Clearwater’s competitive edge and create opportunities for cross-selling and upselling.

The recent acquisition of Enfusion is expected to close in the second quarter of 2025 and is anticipated to enhance Clearwater’s platform capabilities, particularly in regulatory reporting and compliance. Clearwater’s management has set ambitious revenue projections for 2025, estimating a range between $535.5 million and $542 million, reflecting a growth rate of 19-20%. The company also anticipates an EBITDA margin of 34%, demonstrating continued confidence in its strategic initiatives and market position.

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