Latest news with #ClearwaterAnalyticsHoldings
Business Insider
6 days ago
- Business
- Business Insider
Wells Fargo Sticks to Its Buy Rating for Clearwater Analytics Holdings (CWAN)
Wells Fargo analyst Michael Turrin maintained a Buy rating on Clearwater Analytics Holdings on August 8 and set a price target of $32.00. The company's shares closed last Friday at $19.72. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Turrin covers the Technology sector, focusing on stocks such as Microsoft, SAP SE, and Intuit. According to TipRanks, Turrin has an average return of 0.0% and a 46.35% success rate on recommended stocks. In addition to Wells Fargo, Clearwater Analytics Holdings also received a Buy from D.A. Davidson's Peter Heckmann in a report issued on August 7. However, on August 8, TR | OpenAI – 4o downgraded Clearwater Analytics Holdings (NYSE: CWAN) to a Hold. Based on Clearwater Analytics Holdings' latest earnings release for the quarter ending March 31, the company reported a quarterly revenue of $126.86 million and a net profit of $6.51 million. In comparison, last year the company earned a revenue of $102.72 million and had a net profit of $1.9 million Based on the recent corporate insider activity of 98 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CWAN in relation to earlier this year. Most recently, in June 2025, WCAS XIII Carbon Analytics Acquisition, L.P., a Major Shareholder at CWAN sold 14,137,500.00 shares for a total of $340,289,625.00.
Yahoo
29-04-2025
- Business
- Yahoo
Clearwater Analytics Holdings, Inc. (CWAN): Among the Oversold Tech Stocks to Buy According to Hedge Funds
We recently published a list of 11 Oversold Tech Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where Clearwater Analytics Holdings, Inc. (NYSE:CWAN) stands against other oversold tech stocks to buy according to hedge funds. Technology stocks have been among the best performing in the last 15 years. The technology sector has consistently outperformed the broad US market since the aftermath of the 2008 financial crisis, with particularly strong periods being the 2014-2021 and the 2023-2024. Technology stocks tend to perform well during economic expansions and periods of low interest rates, which stimulates the widespread adoption of technological advancements. During such periods, tech companies tend to trade at hyper-expensive valuations, which reflect the strong growth opportunities ahead. Many investors thus believe they become too overvalued, avoid having exposure to them, and consequently miss out on returns. The key point when it comes to technology stocks is that their valuations plummet instantly upon the slightest macroeconomic uncertainty and turmoil, which means that the best moment to acquire technology stocks is when they become oversold, and when fear dominates the market. We believe that we are currently at an opportune time to increase exposure to technology, because it is the most beaten down sector year-to-date. Yardeni Charts show that the S&P Information Technology is currently trading at 24.4 forward P/E, much below the late 2024 peak around 30, marking an almost 20% decline in valuations (for comparison, the broad market's valuation contracted by only 10%). Technology stocks haven't been as cheap since 2023, when the Artificial Intelligence megatrend was just proliferating. Furthermore, the same source showed that the sector has experienced 2 consecutive quarters of negative revisions in earnings expectations, which means that Wall Street analysts have already priced in any short-term headwinds, reducing the chances of further negative surprises in the near future. In other words, the best possible scenario for buying is when both Wall Street and the market are pessimistic, which translates into weak expectations plus cheap valuations, and that's exactly what appears to be happening with the technology sector right now. READ ALSO: 11 Oversold Blue Chip Stocks to Buy According to Hedge Funds To sum up, we concluded that prices for technology stocks are lower now. The only question that remains to be answered is whether the macroeconomic background will be favorable enough to facilitate a new bull run for the tech sector. First, as we already mentioned above, technology stocks thrive under a low interest-rate environment – recent comments by a Federal Reserve official hint towards higher odds that interest rates will be cut as early as June. As a result, yields of short to intermediate-maturity US government bonds fell significantly last week, in anticipation of lower rates. This raises the probability that technological tailwinds will unmute, and businesses will spend more on AI, cloud computing, cybersecurity, and other tech projects that require large cash outlays and are sensitive to financing costs. We are also pleased to find confirmation of our hypothesis from leading consultants such as Deloitte. Here's an excerpt from their recent 2025 technology industry outlook report: 'Despite recent uncertainty and economic turbulence, the technology industry appears poised for growth in 2025, aided by increased IT spending, AI investments, and a renewed focus on innovation. Some analysts project that global IT spending will grow by 9.3% in 2025, with data center and software segments expected to grow at double-digit rates. Worldwide spending on AI is anticipated to grow at a compound annual growth rate of 29% from 2024 to 2028. Although the tech layoff trend persisted in 2024, reductions appeared to slow compared to 2023.' With that being said, the current market setup appears extremely favorable for investing in oversold tech stocks that could recover some or all of the value lost during the recent Trump Tariff Turmoil. With tariff exceptions granted to electronic products, and President Trump hinting towards the possibility that China tariffs will come down from the current unsustainable 145%, the outlook for the technology sector is getting brighter. A wide shot of a large financial data center. To compile our list of oversold tech stocks, we used a screener to identify technology sector stocks that have a Relative Strength Index (RSI) below 40. We then compared the list with Insider Monkey's proprietary database of hedge funds' ownership and included in the article the top 11 stocks with the largest number of hedge funds owning the stock, ranked in ascending order. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Clearwater Analytics Holdings, Inc. (NYSE:CWAN) provides a cloud-based platform for automated investment accounting, performance measurement, compliance monitoring, and risk analytics. The company serves large financial and government institutions, managing more than $8 trillion in assets through its platform. The company also incorporated AI capabilities to improve client interactivity and data analysis. CWAN ranked seventh on our recent list of 10 Best Debt Free Mid Cap Stocks to Buy Now. Clearwater Analytics Holdings, Inc. (NYSE:CWAN) delivered solid results in the most recently reported Q4 2024, with revenue growing 27.7% YoY, and record-high annual recurring revenue generated, showing a 25.3% increase on a YoY basis. The company also significantly improved its net revenue retention rate to 116%, and achieved a record-high gross margin, leading to a 33% EBITDA margin in the quarter. These impressive results were driven by successful cross-selling initiatives, strong client retention rates (at 98%), effective pricing strategies, as well as ongoing international expansion. Looking ahead to 2025, Clearwater Analytics Holdings, Inc. (NYSE:CWAN) expects revenue to grow between 19% to 20% YoY, with EBITDA projected to further expand at 34% for the fiscal 2025. The company continues to focus on multiple growth drivers, including new logo acquisition in North America, international expansion, back-to-base investments, and strategic partnerships, while maintaining its commitment to operational excellence and innovation. Despite negative year-to-date stock price performance, hedge funds have strong conviction in CWAN, making it one of the best oversold stocks on our list. Overall, CWAN ranks 3rd on our list of oversold tech stocks to buy according to hedge funds. While we acknowledge the potential of CWAN as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than CWAN but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
27-04-2025
- Business
- Yahoo
Clearwater Analytics Holdings, Inc. (CWAN): Among the Oversold Growth Stocks to Buy Now
We recently published a list of 11 Oversold Growth Stocks to Buy Now. In this article, we are going to take a look at where Clearwater Analytics Holdings, Inc. (NYSE:CWAN) stands against other oversold growth stocks to buy now. The growth stocks, primarily proxied by high and consistent revenue growth, have shown sluggish performance in 2025 so far despite strong gains during the 2023-2024 period. The growth factor has been muted year-to-date due to the Trump-induced turmoil and uncertainty, favoring the safer value stocks instead. This has led to many growth stocks being oversold and trading at attractive valuations. Despite this, investors are still reluctant to buy because the overall market is still in 'fear' territory as proxied by the CNN Fear & Greed Index being at a relatively low value of 36/100. The key question to answer in this article is the following: Will the US stock market finally return to stability and growth? READ ALSO: 11 Oversold Blue Chip Stocks to Buy According to Hedge Funds We believe there are some strong indicators that support the hypothesis that the market has bottomed and the outlook will shift bullish very soon. First, the market tends to bottom when there is peak pessimism in the news and among retail investors – this has happened last week as the Fear & Greed Index was in Extreme Fear territory and some notorious news portals like The Economist have published extremely bearish first-page stories suggesting that the dollar might be on the verge of collapse and so might the US stock and bond markets along with the US economy. Mainstream news portals tend to be late to the party and only acknowledge market depression after they have happened. From a contrarian perspective, this would mean that peak pessimism was already priced in sometime at the beginning of the month, and things could only get better from here. Our hypothesis has already gotten some confirmation as the US stock market is up more than 5% since the beginning of the week, with the VIX index – a notorious proxy of investors volatility expectations – showing a score of 25, which is significantly below the peak of 60 around 'Liberation Day' early this month. The VIX index score is thus close to its long-term moving average, which stands in the high teens, indicating that the market's expectations are already normalizing. More certainty coming to the market is extremely bullish for stock prices and for the entire economy – it unmutes the Roaring 2020s economic tailwinds and gives clarity to CEOs and consumers to start spending again. Another important indicator suggesting a potential return to growth for the stock market is the high-yield corporate bond spread declining from 461bps a few weeks ago to 348bps, as per Yardeni Research. High-yield bonds are usually related to smaller, high-growth companies, which resonate well with the growth factor we discussed earlier in the article. Declining yields for corporate bonds reflect less expectation of default, which tends to happen in anticipation of economic expansions. Last but not least, the S&P index trades at a forward P/E of 19.5, which is significantly cheaper than the late 2024 peak of around 22.0. This means that there are more bargain prices to be found now than a few months ago, and if one expects the market to return to growth, then now is the best moment to find bargain deals. Many growth stocks are still in oversold territory from the effect of the tariff uncertainty, inflationary threats, and slowdowns across some industries. A wide shot of a large financial data center. To compile our list of oversold growth stocks, we used a screener to identify stocks with at least 20% revenue CAGR in the last 5 years, which are currently oversold by having an RSI below 40 and have significant average upside estimated by analysts. We rank them in descending order by the RSI value. For each stock, we also include the number of hedge funds that own the stock, as per Insider Monkey's database of Q4 2024. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Clearwater Analytics Holdings, Inc. (NYSE:CWAN) provides a cloud-based platform for automated investment accounting, performance measurement, compliance monitoring, and risk analytics. The company serves large financial and government institutions, managing more than $8 trillion in assets through its platform. The company also incorporated AI capabilities to improve client interactivity and data analysis. CWAN ranked seventh on our recent list of 10 Best Debt Free Mid Cap Stocks to Buy Now. Clearwater Analytics Holdings, Inc. (NYSE:CWAN) delivered outstanding Q4 2024 results with revenue of $126.5 million, representing a 27.7% YoY growth, and achieved record-high annual recurring revenue (ARR) of $474.9 million, showing a robust 25.3% YoY increase. The company significantly improved its net revenue retention rate to 116%, achieved a record-high gross margin of 78.8% in Q4, and delivered strong EBITDA of $41.7 million with a 33% margin. These impressive results were driven by successful cross-selling initiatives, strong client retention at 98%, effective pricing strategies, and continued international expansion. Looking ahead, Clearwater Analytics Holdings, Inc. (NYSE:CWAN)'s planned acquisition of Enfusion represents a strategic move to build a comprehensive front-to-back platform for the investment management industry, which is expected to close in Q2 2025. For 2025, management expects standalone revenue between $535.5 million to $542 million, representing approximately 19% to 20% YoY growth, with EBITDA projected at $182 million to $185 million, maintaining a strong 34% margin. The company continues to focus on multiple growth drivers, including new logo acquisition in North America, international expansion, back-to-base investments, and strategic partnerships, while maintaining its commitment to operational excellence and innovation. Despite negative year-to-date stock price performance, CWAN maintains a strong growth momentum and optimistic guidance, making it one of the best oversold stocks on our list. Overall, CWAN ranks 10th on our list of oversold growth stocks to buy now. While we acknowledge the potential of CWAN to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than CWAN but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Globe and Mail
15-04-2025
- Business
- Globe and Mail
Analysts Are Bullish on Top Technology Stocks: Aurora Innovation (AUR), Clearwater Analytics Holdings (CWAN)
There's a lot to be optimistic about in the Technology sector as 3 analysts just weighed in on Aurora Innovation (AUR – Research Report), Clearwater Analytics Holdings (CWAN – Research Report) and Applied Materials (AMAT – Research Report) with bullish sentiments. Stay Ahead of the Market: Discover outperforming stocks and invest smarter with Top Smart Score Stocks. Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener. Aurora Innovation (AUR) In a report released today, Chris Pierce from Needham initiated coverage with a Buy rating on Aurora Innovation and a price target of $10.00. The company's shares closed last Monday at $6.03. According to Pierce is ranked 0 out of 5 stars with an average return of -21.3% and a 25.6% success rate. Pierce covers the NA sector, focusing on stocks such as ChargePoint Holdings, Rivian Automotive, and Sonic Automotive. ;'> Aurora Innovation has an analyst consensus of Moderate Buy, with a price target consensus of $9.43, representing a 46.4% upside. In a report issued on March 31, Cantor Fitzgerald also reiterated a Buy rating on the stock with a $10.00 price target. Clearwater Analytics Holdings (CWAN) RBC Capital analyst Rishi Jaluria maintained a Buy rating on Clearwater Analytics Holdings yesterday and set a price target of $36.00. The company's shares closed last Monday at $23.11. According to Jaluria is ranked 0 out of 5 stars with an average return of -10.5% and a 39.7% success rate. Jaluria covers the Technology sector, focusing on stocks such as Zoom Video Communications, ZoomInfo Technologies, and Palantir Technologies. ;'> Clearwater Analytics Holdings has an analyst consensus of Strong Buy, with a price target consensus of $36.50, a 54.0% upside from current levels. In a report issued on April 7, D.A. Davidson also reiterated a Buy rating on the stock with a $36.00 price target. Applied Materials (AMAT) Citi analyst Atif Malik maintained a Buy rating on Applied Materials today. The company's shares closed last Monday at $144.53, close to its 52-week low of $144.12. According to Malik is a top 25 analyst with an average return of 25.9% and a 61.9% success rate. Malik covers the Technology sector, focusing on stocks such as Universal Display, Arista Networks, and Cisco Systems. ;'> Applied Materials has an analyst consensus of Moderate Buy, with a price target consensus of $203.87.
Yahoo
31-03-2025
- Business
- Yahoo
Clearwater Analytics (CWAN): Among the Best Debt Free Mid Cap Stocks to Buy Now
We recently compiled a list of the 10 Best Debt Free Mid Cap Stocks to Buy Now. In this article, we are going to take a look at where Clearwater Analytics Holdings, Inc. (NYSE:CWAN) stands against the other debt free mid cap stocks. Debt-free mid-cap stocks currently offer compelling investment opportunities, especially in today's high-interest-rate environment. With borrowing costs elevated, companies burdened by debt face increased financial pressure, making debt-free businesses more resilient and attractive. Mid-cap stocks, in particular, balance growth potential with relative stability, often providing more agility and higher upside than large-cap counterparts. Moreover, companies with strong balance sheets and zero debt have more cash capacity to reinvest profits into growth initiatives rather than servicing the debt. As legendary investor Peter Lynch succinctly advised, 'Companies that have no debt can't go bankrupt,' highlighting the inherent safety and resilience found in debt-free investments. Many modern fund managers support the philosophy of Peter Lynch and prefer companies that have an insignificant impact on profitability from interest costs. For reference, the Fundsmith Equity Fund, which has outperformed the world stock market index by 3 percentage points on average since inception, highlights that one of the secrets of its long-term success is, among others, picking stocks with low amounts of debt. They illustrate their performance by calculating that the average company they own has an interest coverage three times higher than the average company in the US stock market – this is primarily achieved by carefully selecting debt-free companies. They also argue that companies with strong balance sheets are more likely to be priced at higher valuations: 'Our portfolio consists of companies that are fundamentally [including debt levels] a lot better than the average of those in the broader market, so it is no surprise that they are valued more highly than the average S&P 500 company.' READ ALSO: Less than two years have passed since the FED funds rate reached its peak in mid-2023. Contrary to a common misconception, we believe that the effects of high interest rates in the economy have not yet been felt at the individual company level. The reason is simple – most of the debt held by the average US company was issued prior to 2023 at lower coupon rates. In this context, as the lower interest rate debt is gradually refinanced and rolled over, it is inevitable that the actual interest costs of companies will become higher, directly impacting their profitability and cash flows. Lower free cash flow, in turn, means less reinvestment into the business and, as a result, weaker long-term growth potential. This is the mechanism through which the current elevated interest rates may finally hit the stock market in the coming years. The problem of high interest rates in the economy is further aggravated by the policies of the new US administration. The FED mentions that they are not rushing to lower interest rates because the Trump 2.0 Tariff Turmoil is very likely to cause a spike in inflation in April, as (or if) the previously announced tariffs are enforced. Also, the US job market, manufacturing activity, and consumers are still relatively healthy, albeit there is a slight slowdown in optimism and spending appetite. Under such conditions, any premature cut in interest rates by the FED risks stagflation, which is one of the most destructive scenarios possible. The key takeaway for investors is that interest rates in the economy are likely to stay elevated above 4% for the foreseeable future, meaning that the impact on the profitability of high-debt companies is likely to increase over time. In this context, debt-free companies, and particularly mid-caps, shall be preferred by investors as they offer the most resilience and stability for the future. A wide shot of a large financial data center. We used a screener to identify mid cap companies between $2 billion and $10 billion market capitalization, with little to no debt. To quantify the debt level, we compared the enterprise value with market capitalization and opted for the stocks with the smallest difference between the two measures. Then we compared the list with our Q4 2024 proprietary database of hedge funds' ownership and included in the article the top 10 stocks with the largest number of hedge funds that own the stock. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Number of Hedge Fund Holders: 48 Enterprise Value: $6.33 billion Market Capitalization: $6.51 billion Clearwater Analytics Holdings, Inc. (NYSE:CWAN) is a leading provider of SaaS-based investment management, accounting, reporting, and analytics solutions. Its cloud-native platform automates data aggregation, reconciliation, compliance, risk assessment, and order management, serving institutional clients such as insurers, asset managers, corporations, and public sector entities. Additionally, the company introduced Clearwater-GPT, leveraging generative AI to offer interactive client features. CWAN ranked fifth on our recent list of . Clearwater Analytics Holdings, Inc. (NYSE:CWAN) provides investment accounting services for asset managers and asset owners, offering accounting, compliance, risk, and performance solutions through a single-instance multi-tenant platform. The company has demonstrated strong financial performance with a consistent growth of 20-25% annually and has maintained high profitability since its inception. The company achieved notable success in Q4 with a Net Revenue Retention (NRR) of 116%, surpassing their original target of 115% a year ahead of schedule. The company's growth strategy is driven by multiple components, including minimal churn (98-99% gross revenue retention), successful pricing initiatives (4-5% contribution), strong upsell performance (7%), and cross-sell opportunities (3-3.5%). A significant development is the pending acquisition of Enfusion, which is expected to close in mid-April, strengthening its market position, particularly in hedge funds and international markets. Clearwater Analytics Holdings, Inc. (NYSE:CWAN) maintains its long-term targets of 20% top-line growth, 80% gross margin, and 40% EBITDA margins, even after incorporating Enfusion. The company has made significant progress in leveraging AI technology to drive efficiency, particularly in client service operations, contributing to improved gross margins. Looking ahead, the company's strategic priorities focus on successfully integrating Enfusion, maintaining 20% growth, and delivering on their promise as a single instance, multiproduct solution with a global security master. With close to no debt on the balance sheet and 48 hedge funds owning the stock, CWAN is one of the best debt free stocks to buy. Overall CWAN ranks 7th on our list of the 10 best debt free mid cap stocks to buy now. While we acknowledge the potential of CWAN as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CWAN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks To Buy Now According to Billionaires. Disclosure: None. This article is originally published at . Sign in to access your portfolio
