Core Insights - The transaction involved Souvik Das, Chief Technology Officer of Clearwater Analytics, selling 41,594 shares, which represented 21.91% of his direct holdings, reducing them from 189,818 to 148,224 shares [5][7] - The sale was executed following the exercise of 89,062 stock options and was a mandated tax withholding sale [2][7] - Clearwater Analytics is undergoing an $8.4 billion take-private deal led by Permira and Warburg Pincus, with a cash offer of $24.55 per share, reflecting a 47% premium over the share price prior to acquisition news [8][9] Transaction Details - The transaction value was approximately $1,002,103.44, based on a sale price of $24.09 per share [5][3] - The sale was significant compared to historical activity, as the recent median for similar sales was only 3.91% [2] - All shares sold were from direct holdings, with no indirect holdings reported post-transaction [4][1] Company Performance - Clearwater Analytics reported strong Q3 2025 results with revenue of $205.1 million, a 77% year-over-year increase, and adjusted EBITDA of $70.7 million with a 34.5% margin [9] - The company serves over $10 trillion in assets globally, leveraging its technology-driven platform for investment data aggregation and reporting [6][9] - Despite the strong performance, Clearwater shares have declined 11% over the past year, underperforming the S&P 500's 18% gain [10]

Company Overview - Clearwater Analytics (NYSE:CWAN) provides software-as-a-service (SaaS) solutions for investment data aggregation, reconciliation, accounting, and reporting, positioning itself as a key player in the financial technology sector [1] Recent Developments - On December 22, 2025, Piper Sandler downgraded NYSE:CWAN from Overweight to Neutral, with the stock price at $24.06; however, the stock surged by 8.13% to close at $24.06 following the announcement of an $8.4 billion take-private deal [2][5] - The trading volume on the day of the announcement reached 99 million shares, significantly higher than the average volume of 5.8 million, indicating heightened investor interest [3][5] Financial Performance - Clearwater Analytics has a market capitalization of approximately $6.93 billion and a gross margin of 68.43%, reflecting a strong ability to convert revenue into profit [3][5] - The stock price fluctuated between $24.05 and $24.15 during the trading session, with a yearly high of $32 and a low of $15.73, showcasing the stock's volatility [4]

Core Viewpoint - Clearwater Analytics is set to be acquired by a group of private equity firms in an $8.4 billion all-cash deal, which has attracted significant attention from event-driven traders focusing on merger-arbitrage spreads and deal risk [1][3]. Company Summary - Clearwater Analytics shares closed at $24.06, reflecting an increase of 8.13% on the day, following news of the acquisition [2]. - The company has a market capitalization of $6.4 billion and reported a gross margin of 68.43% [2]. - Clearwater Analytics went public in 2021 and has experienced a 5% decline in share price since its IPO [3]. Acquisition Details - The acquisition agreement involves a purchase price of $24.55 per share, which is slightly above the current trading price [6]. - The deal is subject to stockholder and regulatory approval, with the board of directors having already approved the merger agreement [6]. - The trading volume for Clearwater Analytics reached 91.1 million shares, significantly exceeding its three-month average of 5.8 million shares, indicating heightened investor interest [3]. Market Context - The S&P 500 and Nasdaq Composite indices saw increases of 0.64% and 0.52%, respectively, reflecting a positive market environment for software and technology stocks [4]. - Other industry peers, such as BlackLine, also experienced gains, suggesting a broader interest in software platforms amid private equity activity and M&A valuations [5]. Investor Considerations - An investor rights law firm, Halper Sadeh LLC, is investigating the fairness of the deal for shareholders, which may introduce delays in the acquisition process [7]. - Investors are closely monitoring the timeline for the buyout and the regulatory review process [7].

Core Insights - Tensile Capital Management increased its investment in Clearwater Analytics by purchasing nearly 1.2 million shares, raising the position's value by approximately $15.7 million [2][3][7] - Clearwater Analytics' stock price is currently $21.71, down 27.5% over the past year, while the S&P 500 has increased by 13% in the same period [4] - Clearwater Analytics reported a market capitalization of $5.55 billion, with revenue of $640.4 million and net income of $392.5 million for the trailing twelve months [5] Investment Activity - Tensile Capital Management's total holding in Clearwater Analytics now stands at 2.5 million shares, valued at $45.5 million, representing 5.7% of the fund's $800.4 million in U.S. equity assets [3][7] - The fund's decision to increase its position indicates confidence in Clearwater's growth potential despite recent stock performance [11][12] Company Overview - Clearwater Analytics provides SaaS-based solutions for investment data aggregation, reconciliation, accounting, and reporting, serving a diverse client base including insurers, investment managers, and government entities [9][10] - The company has demonstrated strong operating momentum, with revenue up 77% year over year to $205.1 million and adjusted EBITDA up 84% to $70.7 million in the latest quarter [11][12] - Clearwater's annualized recurring revenue surged 77% to $807.5 million, with a gross revenue retention rate of 98%, indicating strong client loyalty and operational efficiency [12][13]

Group 1 - Clearwater Analytics Holdings, Inc. (NYSE:CWAN) is identified as a stock with exponential growth potential heading into 2026, with a "Buy" rating and a price target of $27.00 from Morgan Stanley analyst Michael Infante [1] - The company is expected to see an increase in organic net new Annual Recurring Revenue (ARR) due to large deals and improved sales efficiency post-integration [1] - Clearwater Analytics continues to trade at an attractive valuation compared to competitors, benefiting from faster revenue growth and margin expansion [2] Group 2 - T. Rowe Price Associates, Inc. has successfully implemented the CWAN platform for stable value operations, enhancing its capabilities [3] - Clearwater Analytics provides software-as-a-service solutions for automated investment data aggregation, reconciliation, accounting, and reporting, and has recently acquired Enfusion, Beacon, and Bistro assets to broaden its product offerings [3] - The integration of these new assets is a key focus for Clearwater, although it is expected to have a dilutive impact on the company's financial profile, which led to an 18% drop in share price [3]

Core Insights - TimesSquare Capital Management reported a gross return of 11.28% and a net return of 11.02% for its "U.S. Small Cap Growth Strategy" in Q2 2025, underperforming the Russell 2000 Growth Index which returned 11.97% [1] - Clearwater Analytics Holdings, Inc. (NYSE:CWAN) is highlighted as a key stock, with a one-month return of 3.43% but a 52-week decline of 17.12%, closing at $19.90 per share with a market cap of $6.48 billion [2][4] Company Performance - Clearwater Analytics reported revenue of $181.9 million in Q2 2025, marking a 70% year-over-year increase [4] - The company has made acquisitions of Enfusion, Beacon, and Bistro assets to enhance its product offerings, although this has led to a short-term dilutive impact on its financial profile, contributing to an 18% drop in share value [3] Investment Sentiment - Clearwater Analytics is not among the top 30 most popular stocks among hedge funds, with 51 hedge fund portfolios holding the stock at the end of Q2 2025, up from 41 in the previous quarter [4] - Analysts suggest that while Clearwater Analytics has potential, certain AI stocks may offer greater upside potential with less downside risk [4]