Street Calls of the Week
In a recent transaction, Scott Stanley Erickson, Chief Revenue Officer at Clearwater Analytics Holdings , Inc. (NYSE:CWAN), sold shares valued at approximately $2.29 million. The transactions, dated February 19, 2025, involved the sale of 76,256 shares of Class A Common Stock at an average price of $30.07 per share. The stock has shown remarkable strength, gaining over 51% in the past year and recently trading at $31.74. According to InvestingPro analysis, the company currently appears overvalued based on its Fair Value metrics.
The sales were conducted to cover tax withholding obligations linked to the vesting and settlement of performance stock units. This "sell to cover" action was mandated by the company and not a discretionary move by Erickson. InvestingPro data shows the company maintains strong financial health with a "Good" overall score, operating with moderate debt levels and ample liquidity to meet short-term obligations.
Following these transactions, Erickson’s direct ownership stands at 124,624 shares. The shares sold were acquired through the vesting of performance stock units, which were awarded based on the company’s revenue growth achievements in 2024. With a market capitalization of $6.69 billion, Clearwater Analytics has demonstrated solid operational performance, though InvestingPro subscribers can access 12 additional key insights about the company’s valuation and growth prospects.
In other recent news, Clearwater Analytics Holdings reported strong fourth-quarter 2024 earnings, surpassing Wall Street expectations with an earnings per share of $0.13, compared to the forecasted $0.11. The company’s revenue reached $126.5 million, exceeding the anticipated $120.39 million, marking a 28% year-over-year growth. Clearwater’s full-year revenue grew by 22.7%, driven by strong demand and product innovation. The company also announced a significant increase in Annualized Recurring Revenue (ARR) to $474.9 million, reflecting a 25.3% rise. Piper Sandler upgraded Clearwater’s stock rating from Neutral to Overweight, raising the price target to $36, following these robust results. Additionally, DA Davidson maintained a Buy rating with a $32 target, citing Clearwater’s solid growth trajectory and optimistic future guidance. Clearwater’s recent acquisition of Enfusion is expected to enhance its platform capabilities, particularly in regulatory reporting and compliance. Analysts at Piper Sandler view Clearwater’s broadened service offerings as likely to enhance its competitive edge and create opportunities for cross-selling and upselling.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.