Principal Financial Group Inc. Increases Stake in Clearwater Analytics Holdings, Inc.

Principal Financial Group Inc. significantly boosted its investment in Clearwater Analytics Holdings, Inc. (NYSE:CWAN – Free Report) by an impressive 1,600.9% during the fourth quarter, as detailed in its latest 13F filing with the Securities and Exchange Commission (SEC). By the end of this quarter, Principal Financial Group held a total of 1,442,218 shares of Clearwater Analytics' stock, having acquired an additional 1,357,425 shares.

This increase meant that Principal Financial Group controlled roughly 0.58% of Clearwater Analytics, reflecting a total value of about $39,690,000 by the close of the most recent quarter.

In addition to Principal Financial Group, various other institutional investors and hedge funds have also adjusted their positions in CWAN recently. For instance, GAMMA Investing LLC raised its holdings in Clearwater Analytics by 57.4% in the fourth quarter, bringing its ownership up to 1,284 shares valued at $35,000 after procuring an extra 468 shares during this period. Similarly, Whittier Trust Co. of Nevada Inc. made new investments in the third quarter, worth approximately $45,000, while Financial Management Professionals Inc. and R Squared Ltd also acquired new positions in the same timeframe, valued at about $58,000 and $80,000 respectively.

Further, Nisa Investment Advisors LLC significantly expanded its stake in Clearwater Analytics by 174.1% in the fourth quarter, now owning 3,128 shares worth $86,000 after purchasing an additional 1,987 shares recently. Altogether, institutional investors hold 50.10% of Clearwater Analytics stock.

Analysts Update Price Targets

Several financial analysts have recently updated their forecasts for Clearwater Analytics. The Royal Bank of Canada raised its price target from $30.00 to $36.00, assigning the company an “outperform” rating in a recent report. Similarly, Morgan Stanley maintained an “overweight” rating while increasing its price target to $36.00 from $34.00.

UBS Group also revised its price objective upward from $36.00 to $38.00 while giving Clearwater Analytics a “buy” rating. Oppenheimer's report from early December noted an increase in its target from $35.00 to $40.00, maintaining an “outperform” rating. DA Davidson, however, downgraded its rating from “neutral” to “buy,” modifying its price target from $35.00 to $32.00. Currently, one analyst has rated the stock as a sell, while nine others have given buy ratings, leading to a consensus rating of “Moderate Buy” with an average price target of $33.80, according to MarketBeat.

Clearwater Analytics Stock Insights

On the latest trading day, Clearwater Analytics stock opened at $31.35. The stock’s 50-day moving average stands at $28.03, while its 200-day moving average is noted as $27.11. Clearwater Analytics has achieved a market capitalization of $7.74 billion, showing a PE ratio of 18.88 and a price-to-earnings-growth ratio of 7.43, with a beta of 0.72. The company’s debt-to-equity ratio is low at 0.10, and its quick ratio matches its current ratio, both at 4.66. Over the past year, Clearwater Analytics has seen a low of $15.62 and a high of $35.71.

The company recently released its quarterly earnings report on February 19th, where it reported an earnings per share (EPS) of $0.04, missing analyst expectations of $0.11 by $0.07. The revenue reported for the quarter was $126.47 million, slightly above the analyst estimates of $120.34 million. Clearwater Analytics achieved a return on equity of 7.11% with an impressive net margin of 93.97%. Analysts foresee a projected EPS of 0.18 for the current fiscal year.

Insider Transactions

In related news within the company, CEO Sandeep Sahai sold 139,172 shares on December 9th, at an average price of $28.94, totaling approximately $4,027,637.68. Post-transaction, the CEO's direct ownership decreased to 441,724 shares, valued at around $12,783,492.56, marking a 23.96% drop in their stake. This transaction has been formally recorded and is accessible through the SEC.

Additionally, CRO Scott Stanley Erickson sold 76,256 shares on February 19th at an average price of $30.07, with a total sale value of $2,293,017.92. Afterwards, the executive now holds 78,363 shares, worth about $2,356,375.41, reflecting a 49.32% reduction in ownership. In the last three months, insiders have sold 733,431 shares valued at $21,444,493, which represents about 4.60% of the total company's stock.

About Clearwater Analytics Holdings, Inc.

Clearwater Analytics Holdings, Inc. is a leading provider of Software-as-a-Service (SaaS) solutions that automate investment data aggregation, reconciliation, accounting, and reporting services. The company caters to a broad range of clients including insurers, investment managers, corporations, institutional investors, and government entities both in the United States and internationally.

Conclusion

As institutional investments in Clearwater Analytics continue to grow and analysts become increasingly optimistic, the company remains a focus for both current and potential investors.

Finance, Stocks, Investment