Clearwater Analytics Holdings, Inc. (NYSE:CWAN) witnessed a significant transaction on December 4, as WCAS XIII Carbon Analytics Acquisition, L.P., along with associated entities, sold 10,645,133 shares of Class A Common Stock. The shares were sold at a price of $29.25 each, amounting to a total transaction value of approximately $311.37 million. The transaction comes as Clearwater, now valued at $7.32 billion, trades near its 52-week high of $35.71. According to InvestingPro analysis, the stock appears to be trading above its Fair Value.
The transaction was executed under Rule 144 of the Securities Act of 1933, which allows public resale of restricted securities under certain conditions. Following this sale, the reporting owners, including WCAS XIII Carbon Investors, L.P. and WCAS GP CW LLC, no longer hold any shares of Class A Common Stock. The sales were part of a series of transactions involving conversion and disposition of various classes of common stock. The timing is notable, as InvestingPro data shows Clearwater has delivered impressive returns, with the stock up 58% over the past year and 53% in the last six months.
These actions were carried out by entities affiliated with Welsh, Carson, Anderson & Stowe, a private equity firm based in New York. The entities involved in the transaction are significant stakeholders, each holding more than ten percent of Clearwater Analytics' stock prior to this transaction.
In other recent news, Clearwater Analytics reported a 22% year-over-year revenue increase and a 34% growth in adjusted EBITDA in their third-quarter results. The company'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. RBC Capital Markets, however, maintained an Outperform rating for Clearwater Analytics and increased the company's price target from $32.00 to $36.00.
In addition to these financial updates, Clearwater Analytics announced a secondary public offering of 25 million shares of Class A common stock, which are being offered by affiliates of Welsh, Carson, Anderson & Stowe, Warburg Pincus LLC, and Permira Advisers LLC. The underwriter for this offering is J.P. Morgan, who will manage the sale at market or negotiated prices.
Clearwater Analytics also welcomed Subi Sethi as the new Chief Client Officer, reinforcing the company's commitment to growth, innovation, and client relations. These recent developments are expected to contribute to Clearwater Analytics' continued financial performance and market position.
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