Clearwater Analytics Target of Unusually High Options Trading (NYSE:CWAN)

Clearwater Analytics Holdings, Inc. (NYSE:CWAN) was the recipient of some unusual options trading on Monday. Traders bought 32,906 call options on the stock. This is an increase of approximately 469% compared to the average daily volume of 5,788 call options.

Clearwater Analytics News Roundup

Here are the key news stories impacting Clearwater Analytics this week:

• Positive Sentiment: Clearwater agreed to be acquired for roughly $8.4 billion by a Permira- and Warburg Pincus-led investor group, with participation from Temasek and support from Francisco Partners; shareholders are being offered $24.55 per share in cash. BusinessWire: Acquisition Announcement
• Positive Sentiment: The deal price represents about a 47% premium to recent levels, supporting a significant near-term gain for holders and prompting a premarket rally. Barron’s: Deal and Premium
• Positive Sentiment: Royal Bank of Canada reaffirmed an “outperform” rating and set a $36 price target, signaling analyst conviction there may be upside beyond the buyout price (relevant for arbitrage/speculative interest). Benzinga: RBC Rating
• Positive Sentiment: Analysts and market coverage note the deal highlights potential undervaluation vs. strategic value, which has supported buying interest. Invezz: Analysts Flag Undervaluation
• Neutral Sentiment: William Blair reaffirmed a “market perform” rating — a more muted view that contrasts with RBC and may limit further upside from analyst re-ratings. Benzinga: William Blair Rating
• Neutral Sentiment: Media outlets reported slightly different deal valuations (reports ranged ~$8.2B–$8.4B, including debt); market attention remains focused on deal close terms and timing. Reuters: Deal Reports
• Neutral Sentiment: News roundups flagged the take-private transaction as the primary market mover for the stock today. Investopedia: Market Roundup
• Negative Sentiment: Halper Sadeh LLC launched an investigation into whether the $24.55-per-share sale is fair to shareholders, introducing potential litigation or delay risk to the transaction timeline. BusinessWire: Legal Investigation
• Negative Sentiment: An activist investor has been pressing for a higher share price, which could lead to pushback, negotiation or competing bids — a potential source of uncertainty until the deal is fully executed. Yahoo Finance: Activist Interest

Clearwater Analytics Stock Up 8.2%

Shares of Clearwater Analytics stock traded up $1.84 on Monday, reaching $24.09. 52,241,934 shares of the company were exchanged, compared to its average volume of 4,282,338. The stock’s 50 day moving average price is $19.87 and its 200-day moving average price is $20.30. The company has a debt-to-equity ratio of 0.42, a current ratio of 1.97 and a quick ratio of 1.97. Clearwater Analytics has a 1-year low of $15.73 and a 1-year high of $32.00. The company has a market cap of $7.05 billion, a P/E ratio of 15.74, a price-to-earnings-growth ratio of 5.86 and a beta of 0.67.

Clearwater Analytics (NYSE:CWAN) last issued its earnings results on Wednesday, November 5th. The company reported $0.14 EPS for the quarter, missing analysts’ consensus estimates of $0.16 by ($0.02). The firm had revenue of $205.11 million for the quarter, compared to analyst estimates of $203.66 million. Clearwater Analytics had a return on equity of 2.77% and a net margin of 61.28%.The business’s revenue for the quarter was up 77.1% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.14 EPS. As a group, equities analysts forecast that Clearwater Analytics will post 0.18 EPS for the current year.

Clearwater Analytics declared that its board has approved a stock repurchase program on Wednesday, September 3rd that permits the company to buyback $100.00 million in outstanding shares. This buyback authorization permits the company to buy up to 1.7% of its shares through open market purchases. Shares buyback programs are typically an indication that the company’s leadership believes its stock is undervalued.

Insider Buying and Selling

In related news, CFO James S. Cox sold 29,700 shares of the company’s stock in a transaction dated Tuesday, November 25th. The shares were sold at an average price of $22.00, for a total value of $653,400.00. Following the completion of the sale, the chief financial officer owned 333,983 shares of the company’s stock, valued at approximately $7,347,626. This represents a 8.17% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, insider Subi Sethi sold 7,434 shares of the business’s stock in a transaction dated Tuesday, September 30th. The shares were sold at an average price of $17.68, for a total transaction of $131,433.12. Following the completion of the transaction, the insider owned 226,980 shares in the company, valued at $4,013,006.40. The trade was a 3.17% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 120,727 shares of company stock worth $2,402,598. 3.31% of the stock is owned by corporate insiders.

Institutional Trading of Clearwater Analytics

Several institutional investors and hedge funds have recently bought and sold shares of CWAN. Intech Investment Management LLC grew its holdings in shares of Clearwater Analytics by 46.4% during the second quarter. Intech Investment Management LLC now owns 157,281 shares of the company’s stock worth $3,449,000 after buying an additional 49,845 shares in the last quarter. Future Fund LLC purchased a new position in shares of Clearwater Analytics during the second quarter valued at approximately $732,000. Hillsdale Investment Management Inc. boosted its position in Clearwater Analytics by 28.0% during the second quarter. Hillsdale Investment Management Inc. now owns 190,950 shares of the company’s stock worth $4,188,000 after acquiring an additional 41,800 shares during the last quarter. Segall Bryant & Hamill LLC grew its stake in Clearwater Analytics by 20.4% in the 2nd quarter. Segall Bryant & Hamill LLC now owns 384,634 shares of the company’s stock worth $8,435,000 after acquiring an additional 65,141 shares during the period. Finally, Swiss National Bank grew its stake in Clearwater Analytics by 8.2% in the 2nd quarter. Swiss National Bank now owns 447,996 shares of the company’s stock worth $9,825,000 after acquiring an additional 33,896 shares during the period. Hedge funds and other institutional investors own 50.10% of the company’s stock.

Analyst Ratings Changes

Several equities analysts have recently commented on CWAN shares. Royal Bank Of Canada restated an “outperform” rating and issued a $36.00 price objective on shares of Clearwater Analytics in a report on Monday. Warburg Research set a $24.55 target price on Clearwater Analytics in a research report on Monday. DA Davidson restated a “buy” rating and set a $30.00 price target on shares of Clearwater Analytics in a research report on Wednesday, December 10th. Morgan Stanley reaffirmed an “overweight” rating and issued a $27.00 price objective on shares of Clearwater Analytics in a research note on Monday, November 24th. Finally, William Blair reissued a “market perform” rating on shares of Clearwater Analytics in a research note on Monday. Eight analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $28.65.

Clearwater Analytics Company Profile

Clearwater Analytics LLC is a global provider of web-based investment portfolio accounting, reporting, and analytics solutions. The company’s software-as-a-service platform automates complex processes involved in investment data aggregation, reconciliation, valuation, and regulatory reporting. Serving institutional investors—including insurers, asset managers, corporations, government entities, and asset owners—Clearwater Analytics enables clients to optimize performance visibility, risk management, and operational efficiency.

Founded in 2004 and headquartered in Boise, Idaho, Clearwater Analytics has grown its global footprint with offices across North America, Europe, and the Asia-Pacific region.