Clearwater Analytics Holdings, Inc. (NYSE:CWAN) Chief Client Officer, Subi Sethi, has recently engaged in multiple stock transactions involving the company's Class A Common Stock. On June 6, 2024, Sethi completed sales totaling over $848,536 at prices ranging from $19.7068 to $19.9069.
These sales were executed in multiple trades, with the weighted average sale prices detailed in the footnotes of the SEC filing. Specifically, the transactions occurred at prices between $19.43 and $20.19, according to the footnotes. The sales are part of a series of transactions that also included acquiring shares at a price of $4.4 per share, and disposing of shares to cover tax liabilities at a price of $19.56 per share.
The total amount for the shares acquired, represented by the "M" transactions, was $440,000, reflecting the uniform price of $4.4. On the other hand, the "F" transactions, which typically relate to the payment of exercise price or taxes due to option exercises, amounted to $1,119,849 at the price of $19.56 per share.
Sethi's transactions come as part of the regular financial activities of company executives, as documented in the SEC Form 4 filings. These filings provide a glimpse into the buying and selling patterns of company insiders, offering investors insight into executive confidence in the company's performance and outlook.
Clearwater Analytics Holdings, Inc., based in Boise, Idaho, specializes in services and prepackaged software, operating under the technology sector. The company's stock is publicly traded on the New York Stock Exchange under the ticker symbol CWAN. As of the date of the report, Sethi's ownership stood at 77,519 shares following the transactions detailed in the filing.
Investors and market watchers often pay close attention to insider transactions as they can provide valuable signals about the company's health and future prospects. However, it is important to consider that there can be various reasons for an executive to sell stock, and such transactions do not always necessarily reflect a negative outlook.
The details of these transactions are publicly available in the SEC Form 4 filing, which outlines the specifics of the trades made by the company's Chief Client Officer.
In other recent news, Clearwater Analytics has reported robust growth in its Q1 2024 results, with a 21% rise in revenue to $102.7 million and a 42.9% surge in EBITDA to $32.2 million. This growth is attributed to low churn rates, high net promoter scores, and the successful onboarding of new clients. The company has also initiated a secondary public offering of 12 million shares of Class A common stock, a resale by affiliates of Warburg Pincus LLC and Permira Advisers LLC.
Further enhancing its capabilities, Clearwater Analytics has acquired Wilshire Advisors' risk performance and analytics platforms. Despite concerns about Q2 guidance due to the early go-live of a large client in Q1 impacting Q2 revenue, the company remains committed to its long-term EBITDA margin goal of 40%.
These recent developments include a record high gross margin of 78% and a net revenue retention rate of 110%. Clearwater Analytics has surpassed its revenue and EBITDA guidance for the quarter and has increased its full-year revenue and EBITDA guidance for 2024. The company added six significant clients to its Clearwater JUMP platform and expects upselling momentum to increase in the second half of the year.
InvestingPro Insights
Amid the recent insider trading activity at Clearwater Analytics Holdings, Inc. (NYSE:CWAN), investors may find additional context by considering some key metrics and insights from InvestingPro. With a market capitalization of $4.39 billion and a notable revenue growth of 21.76% over the last twelve months as of Q1 2024, CWAN appears to be on a growth trajectory. This is supported by an impressive gross profit margin of 71.4%, which suggests the company is efficient in its operations despite not being profitable over the last twelve months.
An InvestingPro Tip points out that analysts have revised their earnings downwards for the upcoming period, which could be a signal for investors to watch closely as the company navigates its financial future. Moreover, the stock is currently trading at a high Price / Book multiple of 13.7, which may indicate that it's valued optimistically by the market given its book value of assets. This could be of particular interest to value-focused investors assessing the company's stock price in relation to its tangible assets.
For those looking to delve deeper into the financials and future prospects of Clearwater Analytics, there are additional InvestingPro Tips available at https://www.investing.com/pro/CWAN. Subscribers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking further insights that could help in making more informed investment decisions. In total, there are 14 InvestingPro Tips listed for CWAN, which could provide a comprehensive view of the company’s financial health and stock performance.
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