Clearwater Analytics Holdings, Inc. (NYSE:CWAN) is one of the best mid cap stocks to buy according to hedge funds. On November 13, DA Davidson kept its Buy rating on Clearwater Analytics Holdings, Inc. (NYSE:CWAN) and maintained a $30 per share price target for the stock. The decision came after reports emerged that Clearwater was the subject of a takeover interest. DA Davidson Keeps Buy Rating on Clearwater Analytics (CWAN) Amid Takeover Interest Source: Pixabay According to the analysts, any credible ...

Core Insights - Artisan Partners' "Artisan Small Cap Fund" reported strong performance in Q3 2025, with major US indices reaching record highs and the fund's Investor Class returning 8.69% [1] - Clearwater Analytics Holdings, Inc. (NYSE:CWAN) was highlighted as a key stock, experiencing a one-month return of 4.88% but a significant 35.20% decline over the past year [2][4] - The fund exited its investment in Clearwater Analytics due to a strategic shift towards M&A, which diverged from the original investment thesis, but the company remains on the watchlist for future evaluation [3] Fund Performance - The Artisan Small Cap Fund's Investor Class fund ARTSX returned 8.69%, Advisor Class fund APDSX returned 8.75%, and Institutional Class fund APHSX returned 8.73% in Q3 2025 [1] - The Russell 2000 Growth Index outperformed the fund with a return of 12.19% during the same period [1] Clearwater Analytics Holdings, Inc. - Clearwater Analytics reported Q3 2025 revenue of $205.1 million, marking a 77% year-over-year increase [4] - The company's market capitalization was noted at $6.503 billion, with shares closing at $19.97 on November 17, 2025 [2] - The company is shifting its focus from organic growth to larger-scale M&A, which led to the fund's decision to exit its investment [3]

Core Viewpoint - Private equity firm Thoma Bravo has made an offer to acquire Clearwater Analytics, indicating a potential consolidation in the financial technology sector [1] Company Summary - Thoma Bravo is a private equity firm known for its investments in software and technology companies [1] - Clearwater Analytics specializes in providing cloud-based investment accounting and reporting solutions [1] Industry Summary - The acquisition reflects ongoing trends in the financial technology industry, where private equity firms are increasingly targeting software companies for growth opportunities [1]

Core Insights - Clearwater Analytics Holdings Inc. (NYSE:CWAN) has seen a significant stock price increase of 18.97% week-on-week due to investor interest following reports of a potential sale [1][2] - The company is currently working with advisers to explore options and gauge interest from prospective buyers, specifically Warburg Pincus and Permira [2] - Despite a record low stock price prior to the recent surge, the company's revenue increased by 77% year-on-year, reaching $205 million, surpassing its guidance [3] Financial Performance - Clearwater reported a net loss of $10.3 million for the recent quarter, a decline from a net income of $3.6 million in the same period last year [3] - The company expects full-year revenues to be between $730 million and $731 million, indicating a year-on-year growth of 62% [4] - For the fourth quarter, Clearwater anticipates revenues in the range of $216 million to $217 million, reflecting a year-on-year growth of 71% to 72% [4]

Group 1 - Warburg Pincus and Permira are in talks to acquire Clearwater Analytics, a software manufacturer for investment and accounting [1] - The acquisition discussions may conclude in the coming weeks, but the specific purchase price remains undisclosed [1] - Clearwater's stock surged over 19% in after-hours trading following the acquisition news, with its market valuation around $5.63 billion [1] Group 2 - Clearwater Analytics, founded in 2004 and headquartered in Boise, Idaho, provides software solutions primarily to the financial services sector [1] - The company reported a 77% year-over-year revenue increase in Q3, reaching $205 million, and an 84% rise in adjusted EBITDA to approximately $71 million [1] - In April, Clearwater completed the acquisition of Enfusion Inc. for about $1.5 billion [2]

Core Insights - Global private equity firms Warburg Pincus and Permira are in discussions to acquire Clearwater Analytics, a company specializing in investment and accounting software [1] Company Summary - Clearwater Analytics is a software maker focused on investment and accounting solutions, indicating a strategic interest from major private equity firms [1] Industry Context - The involvement of prominent private equity firms like Warburg Pincus and Permira highlights the growing interest in technology-driven financial solutions within the investment and accounting sector [1]

Warburg Pincus and Permira are in talks to acquire investment and accounting software maker Clearwater Analytics Holdings Inc., according to people familiar with the matter. https://t.co/TBMRbwV08g ...

Core Viewpoint - Clearwater Analytics (CWAN) has received a hold rating despite strong Q3 2025 results and better-than-expected integration of Enfusion, Beacon, and Bistro, indicating that the market may require further evidence of sustained performance [1]. Financial Performance - Q3 2025 results for Clearwater Analytics were strong, suggesting positive operational performance [1]. Integration Progress - The integration of Enfusion, Beacon, and Bistro is progressing better than anticipated, which may enhance the company's operational capabilities [1].

Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential trading opportunities before the market opens [1] Premarket Gainers - Shoulder Innovations, Inc. (SI) is up 14% at $13.01 [3] - BILL Holdings, Inc. (BILL) is up 11% at $52.14 [3] - On Holding AG (ONON) is up 8% at $38.24 [3] - CuriosityStream Inc. (CURI) is up 8% at $4.08 [3] - Clearwater Analytics Holdings, Inc. (CWAN) is up 7% at $19.80 [3] - Valhi, Inc. (VHI) is up 7% at $14.54 [3] - Beam Global (BEEM) is up 7% at $2.29 [3] - FGI Industries Ltd. (FGI) is up 6% at $5.66 [3] - The Honest Company, Inc. (HNST) is up 6% at $2.68 [3] - China Automotive Systems, Inc. (CAAS) is up 5% at $4.40 [3] Premarket Losers - Graphjet Technology (GTI) is down 22% at $3.02 [4] - Black Rock Coffee Bar, Inc. (BRCB) is down 10% at $21.90 [4] - Rain Enhancement Technologies Holdco, Inc. (RAIN) is down 9% at $4.90 [4] - Stereotaxis, Inc. (STXS) is down 9% at $2.59 [4] - Biohaven Ltd. (BHVN) is down 8% at $7.82 [4] - Epsium Enterprise Limited (EPSM) is down 7% at $3.15 [4] - Cycurion, Inc. (CYCU) is down 7% at $3.13 [4] - Galecto, Inc. (GLTO) is down 6% at $22.09 [4] - Anbio Biotechnology (NNNN) is down 6% at $21.68 [4] - Ridgetech, Inc. (RDGT) is down 5% at $3.46 [4]

Core Insights - Clearwater Analytics Holdings Inc. (NYSE:CWAN) experienced a significant stock price increase of 10.25% on Tuesday, closing at $18.40, following a 52-week low of $15.73 reached on November 6 [1][2] - The company reported a third-quarter net loss of $10.3 million, a decline from a net income of $3.6 million in the same period last year, despite revenues increasing by 77% to $205 million [2][4] - For the full year, Clearwater expects revenues to be between $730 million and $731 million, indicating a year-on-year growth of 62%, with fourth-quarter revenues projected at $216 million to $217 million, reflecting a growth of 71% to 72% [3] Financial Performance - Clearwater's third-quarter revenue reached $205.1 million, marking a 77% increase year-over-year, attributed to its integrated company structure and advanced technology [4] - The company exceeded its revenue guidance for the third quarter, which was set between $203 million and $204 million [2] Future Outlook - The company anticipates strong revenue growth for the upcoming quarters, with a focus on leveraging its technology to enhance unit economics and drive further growth [4][3]