Sandeep Sahai, the Chief Executive Officer of Clearwater Analytics Holdings, Inc. (NYSE:CWAN), a $6.05 billion market cap company that has seen its stock surge nearly 39% over the past six months, recently sold 50,000 shares of Class A Common Stock, totaling approximately $1.29 million. These sales, executed at a weighted average price of $25.8872, were part of a pre-established trading plan under Rule 10b5-1.
In addition to the sale, Sahai acquired 109,725 shares through the exercise of stock options at a price of $4.40 per share, totaling $482,790. Following these transactions, Sahai holds 615,855 shares directly.
The transactions were reported in a Form 4 filing with the Securities and Exchange Commission, highlighting Sahai’s ongoing involvement with the company as both a director and officer. For a comprehensive analysis of CWAN’s valuation and growth prospects, check out the detailed Pro Research Report available on InvestingPro, which covers this and 1,400+ other US stocks.
In other recent news, Clearwater Analytics has seen significant activity with a series of notable developments. The company’s decision to acquire Enfusion for $1.5 billion was met with mixed reactions from market analysts. RBC (TSX:) Capital Markets adjusted its price target for Clearwater to $30, continuing to recommend the stock as Outperform, while DA Davidson upgraded the company’s stock rating from Neutral to Buy in light of the merger.
The acquisition is viewed strategically, with analysts from both firms expecting it to accelerate Clearwater’s technological advancements. Despite the price target reduction, RBC Capital Markets analysts express belief in the strategic value of the acquisition and its potential to drive future growth.
In addition to the merger, Clearwater has also concluded an amendment to their Tax Receivable Agreement, which was approved by stockholders in a recent special meeting. The amendment involves a one-time settlement payment that will settle all past, present, and future payment obligations under the agreement.
Clearwater also announced a secondary public offering of 25 million shares of Class A common stock, managed by J.P. Morgan. The shares are being offered by affiliates of Welsh, Carson, Anderson & Stowe, Warburg Pincus LLC, and Permira Advisers LLC.
The company also highlighted its financial growth in their third-quarter results, showing a 22% year-over-year revenue increase and a 34% growth in adjusted EBITDA. Clearwater’s management revised their 2024 forecasts upwards, increasing the midpoints for revenue and adjusted EBITDA by approximately 1% and 2%, respectively. Despite these positive earnings, DA Davidson downgraded Clearwater Analytics from Buy to Neutral, but raised the price target to $35.00, acknowledging the company’s strong third-quarter results and confidence in future performance.
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