Clearwater Analytics Holdings, Inc. (CWAN) - Stock Analysis
Last updated: Jan 19, 2026
Research Idea
Research content for general circulation. Not individualized advice. Methodology & Disclosures
Clearwater Analytics shows solid growth with 7.5% price gain and AI integrations, backed by a major $8.4B acquisition pending closure; near-term price volatility expected but medium-term upside potential justifies cautious accumulation.
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AI Analyst Overview
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Valuation Metrics
Fundamental Analysis
Key Financial Insights: ⢠Higher leverage ⢠Weaker liquidity ⢠Strong gross margins CWAN expanded materially to ~$3.0B of assets driven by $1.98B of intangibles but now carries much higher long-term leverage and weaker liquidity despite positive EBITDA and strong gross margins.
Price Behavior
Key Price Behavior Insights: ⢠Steady ascent ⢠Support holding ⢠Near-term resistance Support Level: $24.00 Resistance Level: $24.30 CWAN has trended up over the last month from about $21.70 to $24.27, holding above $24.00 as potential short-term support while facing resistance near $24.30 that could trigger consolidation if not breached.
Sentiment & News
Key News Insights: ⢠Take-private deal ⢠Insider share sales ⢠Multiple lawsuits Clearwater Analytics agreed to an $8.4B takeâprivate at $24.55/share, triggering a >8% pop, heavy options activity, insider sales, and multiple shareholder lawsuits challenging deal fairness.
AI Summary
Clearwater has shifted from a growth SaaS story to a transactionâcentric trade where nearâterm returns are capped by the $24.55 takeâprivate bid and hinge on litigation/financing outcomes, so investors should treat it as deal arbitrage or exit unless a higher bid or cleared sale restores public upsideâmeanwhile elevated leverage and integration risk magnify downside if the deal unravels.
Description
Clearwater Analytics Holdings, Inc. is a SaaS provider that automates aggregation, reconciliation, accounting and reporting of investment data for insurers, asset managers, corporations, institutions and government entities. Its platform includes capabilities for investment accounting, performance measurement, compliance monitoring and risk analytics, and its Clearwater Prism offering provides self-service access to multiple internal and third-party data feeds and flexible reporting. The company was incorporated in 2021 and is headquartered in Boise, Idaho.
Idea History
| Date | Close | Ticker | Company | Summary | Status | P/L |
|---|---|---|---|---|---|---|
| Dec 22 | Dec 29 | CWAN | Clearwater Analytics Holdings, Inc. | Clearwater Analytics shows solid growth with 7.5% price gain and AI integrations, backed by a major $8.4B acquisition pending closure; near-term price volatility expected but medium-term upside potential justifies cautious accumulation. | Closed | +0.2% |