Clearwater Analytics Holdings, Inc. (CWAN) recently garnered a Neutral rating from Patrick Moley of Piper Sandler, with a price target set at $27. This analysis comes amid a complex landscape of investor sentiment and market performance, prompting a closer examination of what it means for current and potential investors.
Market / Price Action
As of the latest trading session, Clearwater Analytics shares are priced at $24.10, reflecting a slight increase of 0.04, or 0.17% in percentage terms. The stock has experienced notable volatility in recent weeks, with average trading volumes reaching approximately 28.94 million, significantly surpassing its three-month average of about 7.36 million. This uptick in trading activity suggests rising interest and sentiment among investors, although the stock’s performance remains below its 52-week high of $53.16. The market capitalization currently stands at around $6.94 billion, and with a beta of 0.67, CWAN appears less volatile compared to the broader market, a factor that may appeal to conservative investors.
Short- and Long-Term Performance
Examining the stock’s historical performance reveals mixed results. Over the past 30 days, CWAN has surged by 16.14%, reflecting a robust rebound despite broader market headwinds. The quarterly performance tells a similar story, demonstrating a notable increase of 32.49%. However, the stock’s one-year performance is less favorable, down 18.44%, indicating potential challenges that investors must navigate. Weekly volatility is around 2.61%, while monthly volatility measures slightly higher at 3.23%. This suggests that although the stock is seeing positive momentum, there are underlying fluctuations that investors should watch closely.
Earnings / Financials
In its most recent earnings report dated November 5, 2025, Clearwater Analytics posted earnings per share (EPS) of $0.14, falling short of analysts’ expectations of $0.15, resulting in a surprise factor of -6.67%. This follows a previous EPS of $0.12, which also missed expectations. The repeated failure to meet earnings expectations raises questions about the company’s short-term financial health and could signal challenges in achieving projected growth. Investors often interpret such misses as indications of underlying business issues, making future performance a focal point for scrutiny.
Analyst / Consensus View
The overall analyst sentiment surrounding Clearwater Analytics shows a relatively positive outlook despite the recent downgrade to Neutral. Over the most recent 90 days, the company has received 11 ratings, with 9 classified as Buy and 2 as Hold, indicating a favorable consensus among analysts. The average price target stands at approximately $29.18, with a high of $36 and a low of $25. The newly established price target of $27 aligns closely with both the recent stock price and the consensus average, suggesting that analysts see limited upside from current levels in the near term, which may comfort conservative investors.
Stock Grading or Fundamental View
Clearwater Analytics holds a Stocks Telegraph Grade of 52, reflecting average fundamental health and investment profile based on comprehensive market analysis. This score indicates that while the company possesses some compelling attributes, it may lack the robust competitive positioning or growth trajectory that typically garners higher grades. Investors should consider this grading when assessing the company’s potential for future gains.
Conclusion
In conclusion, Clearwater Analytics (CWAN) offers a compelling opportunity for long-term growth investors, although its recent earnings miss and neutral rating may give pause to those seeking reliability. The stock’s ability to generate positive monthly and quarterly returns suggests potential recovery, yet the year-on-year decline raises valid concerns regarding its long-term trajectory. Given its moderate risk profile and reduced volatility, CWAN may be particularly appealing to those with a higher risk tolerance alongside a focus on technological advancements in financial analytics. Investors should monitor upcoming earnings results and market trends closely, as these factors will be critical in determining the stock’s potential for recovery and growth in the increasingly competitive analytics sector.