RBC Downgrades Clearwater to Sector Perform, Price Target Cut to $24.55
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Should l Buy CWAN?
RBC Capital downgraded Clearwater Analytics to Sector Perform from Outperform with a price target of $24.55, down from $36, after the company reached an agreement to be acquired by an investor group led by Permira and Warburg Pincus for $24.55 per share in cash. RBC says that given the "growing AI bear narratives across software" and the thorough sale process run by Clearwater, it believes the deal likely fairly values Clearwater.
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Analyst Views on CWAN
Wall Street analysts forecast CWAN stock price to rise
10 Analyst Rating
5 Buy
5 Hold
0 Sell
Moderate Buy
Current: 23.390
Low
24.55
Averages
27.83
High
36.00
Current: 23.390
Low
24.55
Averages
27.83
High
36.00
About CWAN
Clearwater Analytics Holdings, Inc. is a provider of comprehensive cloud-native platforms for institutional investors across global public and private markets. The Company’s single-instance, multi-tenant architecture delivers real-time data and artificial intelligence (AI)-driven insights throughout the investment lifecycle. The platform eliminates information silos by integrating portfolio management, trading, investment accounting, reconciliation, regulatory reporting, performance, compliance, and risk analytics in one unified system. The Company serves insurers, asset managers, hedge funds, banks, corporations, and governments. The Company is also a provider of enterprise risk analytics and developer infrastructure. Its capabilities in complex portfolio management across both public and private markets include structured products, private credit, and derivatives.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Investigation into Clearwater Analytics Buyout Fairness
- Buyout Price Investigation: Kaskela Law LLC is investigating whether the proposed buyout price of $24.55 per share for Clearwater Analytics is fair, aiming to protect shareholder interests and ensure adequate financial compensation.
- Shareholder Cash-Out: Upon transaction completion, Clearwater shareholders will be cashed out at $24.55 per share, indicating the company will cease public trading, which may affect liquidity and investor confidence.
- Analyst Price Target Comparison: At the time of the buyout announcement, several analysts maintained price targets exceeding $35.00 per share, suggesting the current buyout price may be below market expectations, potentially leading to shareholder dissatisfaction and legal actions.
- Legal Rights and Options: Kaskela Law LLC provides an online form for Clearwater investors to fill out to learn about the investigation's progress and their legal rights, demonstrating a commitment to safeguarding investor interests.
See More
Investigation Launched into Clearwater Acquisition
- Investigation Initiated: Levi & Korsinsky, LLP has launched an investigation into the acquisition of Clearwater Analytics Holdings, Inc., focusing on whether the consortium led by Permira and Warburg Pincus maximized shareholder value.
- Shareholder Compensation Concerns: Clearwater shareholders are expected to receive only $24.55 per share in cash, raising questions about whether the Board disclosed all material facts adequately to shareholders.
- Legal Consultation Offered: Levi & Korsinsky is providing no-cost legal consultations to help shareholders understand their rights and participate in the investigation, demonstrating a commitment to shareholder interests.
- Firm's Reputation: Levi & Korsinsky is a nationally recognized law firm with extensive experience in securities litigation, having recovered hundreds of millions for investors, indicating its capability and expertise in protecting shareholder rights.
See More
Starboard Value LP Acquires Stake in Clearwater Analytics
- New Investment Disclosure: According to a February 17, 2026 SEC filing, Starboard Value LP disclosed a new position in Clearwater Analytics by purchasing 9,959,031 shares valued at $240.21 million, indicating confidence in the company's growth potential.
- Asset Management Proportion: This acquisition represents 4.55% of Starboard's reportable assets under management as of December 31, 2025, highlighting the importance of Clearwater in their investment strategy and potentially influencing future allocations.
- Market Performance Analysis: As of February 17, 2026, Clearwater's shares were priced at $22.93, reflecting a 17% decline over the past year and underperforming the S&P 500 by 26.7 percentage points, which suggests market caution regarding its growth outlook.
- Business Model and Challenges: Clearwater Analytics focuses on providing automated investment data management solutions for institutional clients; while its cloud platform ensures steady recurring revenue, the complexity of client onboarding may slow margin growth, prompting investors to assess whether revenue can outpace service delivery costs.
See More
Starboard Value Acquires Stake in Clearwater Analytics
- Acquisition Overview: Starboard Value LP acquired 9,959,031 shares in Clearwater Analytics, with an estimated transaction value of $240.21 million, reflecting a new position in its investment portfolio.
- Asset Management Proportion: The newly acquired stake represents 4.55% of Starboard's 13F reportable assets under management, indicating a significant investment despite not being among the top five holdings.
- Market Performance Analysis: As of February 17, 2026, Clearwater Analytics shares were priced at $22.93, down 17% over the past year, underperforming the S&P 500 by 26.7 percentage points, raising concerns about its growth potential.
- Business Model and Challenges: Clearwater Analytics focuses on providing SaaS solutions for automated investment data management, ensuring stable recurring revenue through its subscription model, but the client onboarding process may slow margin growth, making future growth reliant on deeper usage by existing clients.
See More
Starboard Value LP Acquires Major Stake in Clearwater Analytics
- New Investment Disclosure: On February 17, 2026, Starboard Value LP disclosed a purchase of 9,959,031 shares in Clearwater Analytics, valued at $240.21 million, indicating a significant new investment that could influence market performance.
- Asset Management Proportion: This acquisition represents 4.55% of Starboard's reportable assets under management as of December 31, 2025, highlighting Clearwater's importance in its portfolio and potentially attracting more investor interest.
- Market Performance Analysis: As of February 17, 2026, Clearwater's shares were priced at $22.93, down 17.0% over the past year and underperforming the S&P 500 by 26.7 percentage points, reflecting market concerns about its future growth prospects.
- Business Model and Challenges: Clearwater Analytics focuses on automated investment data management, and while its cloud platform provides steady recurring revenue, the complexities of client onboarding and data integration may hinder margin growth, prompting investors to monitor whether revenue growth can outpace service delivery costs.
See More
Investor Rights Law Firm Investigates Transactions
- Transaction Investigation: Halper Sadeh LLC is investigating the sale of European Wax Center, Inc. (NASDAQ:EWCZ) to General Atlantic for $5.80 per share in cash, potentially indicating breaches of fiduciary duties that could affect shareholder rights.
- Cash Acquisition: Clearwater Analytics Holdings, Inc. (NYSE:CWAN) is being sold to Permira and Warburg Pincus for $24.55 per share in cash, with Halper Sadeh LLC possibly seeking increased consideration or other remedies to protect shareholder interests.
- Merger Review: The merger of Bakkt Holdings, Inc. (NYSE:BKKT) with Distributed Technologies Research Ltd. is under investigation, with Halper Sadeh LLC representing shareholders to seek additional disclosures and transparency to safeguard their rights.
- Legal Support: Halper Sadeh LLC offers legal consultations without upfront fees, aiming to assist investors affected by securities fraud and corporate misconduct, ensuring their rights are upheld.
See More
Investigation into Clearwater Analytics Buyout Fairness
- Buyout Price Investigation: Kaskela Law LLC is investigating whether the proposed buyout price of $24.55 per share for Clearwater Analytics is fair, aiming to protect shareholder interests and ensure adequate financial compensation.
- Shareholder Cash-Out: Upon transaction completion, Clearwater shareholders will be cashed out at $24.55 per share, indicating the company will cease public trading, which may affect liquidity and investor confidence.
- Analyst Price Target Comparison: At the time of the buyout announcement, several analysts maintained price targets exceeding $35.00 per share, suggesting the current buyout price may be below market expectations, potentially leading to shareholder dissatisfaction and legal actions.
- Legal Rights and Options: Kaskela Law LLC provides an online form for Clearwater investors to fill out to learn about the investigation's progress and their legal rights, demonstrating a commitment to safeguarding investor interests.
See More
Investigation Launched into Clearwater Acquisition
- Investigation Initiated: Levi & Korsinsky, LLP has launched an investigation into the acquisition of Clearwater Analytics Holdings, Inc., focusing on whether the consortium led by Permira and Warburg Pincus maximized shareholder value.
- Shareholder Compensation Concerns: Clearwater shareholders are expected to receive only $24.55 per share in cash, raising questions about whether the Board disclosed all material facts adequately to shareholders.
- Legal Consultation Offered: Levi & Korsinsky is providing no-cost legal consultations to help shareholders understand their rights and participate in the investigation, demonstrating a commitment to shareholder interests.
- Firm's Reputation: Levi & Korsinsky is a nationally recognized law firm with extensive experience in securities litigation, having recovered hundreds of millions for investors, indicating its capability and expertise in protecting shareholder rights.
See More
Starboard Value LP Acquires Stake in Clearwater Analytics
- New Investment Disclosure: According to a February 17, 2026 SEC filing, Starboard Value LP disclosed a new position in Clearwater Analytics by purchasing 9,959,031 shares valued at $240.21 million, indicating confidence in the company's growth potential.
- Asset Management Proportion: This acquisition represents 4.55% of Starboard's reportable assets under management as of December 31, 2025, highlighting the importance of Clearwater in their investment strategy and potentially influencing future allocations.
- Market Performance Analysis: As of February 17, 2026, Clearwater's shares were priced at $22.93, reflecting a 17% decline over the past year and underperforming the S&P 500 by 26.7 percentage points, which suggests market caution regarding its growth outlook.
- Business Model and Challenges: Clearwater Analytics focuses on providing automated investment data management solutions for institutional clients; while its cloud platform ensures steady recurring revenue, the complexity of client onboarding may slow margin growth, prompting investors to assess whether revenue can outpace service delivery costs.
See More
Starboard Value Acquires Stake in Clearwater Analytics
- Acquisition Overview: Starboard Value LP acquired 9,959,031 shares in Clearwater Analytics, with an estimated transaction value of $240.21 million, reflecting a new position in its investment portfolio.
- Asset Management Proportion: The newly acquired stake represents 4.55% of Starboard's 13F reportable assets under management, indicating a significant investment despite not being among the top five holdings.
- Market Performance Analysis: As of February 17, 2026, Clearwater Analytics shares were priced at $22.93, down 17% over the past year, underperforming the S&P 500 by 26.7 percentage points, raising concerns about its growth potential.
- Business Model and Challenges: Clearwater Analytics focuses on providing SaaS solutions for automated investment data management, ensuring stable recurring revenue through its subscription model, but the client onboarding process may slow margin growth, making future growth reliant on deeper usage by existing clients.
See More
Starboard Value LP Acquires Major Stake in Clearwater Analytics
- New Investment Disclosure: On February 17, 2026, Starboard Value LP disclosed a purchase of 9,959,031 shares in Clearwater Analytics, valued at $240.21 million, indicating a significant new investment that could influence market performance.
- Asset Management Proportion: This acquisition represents 4.55% of Starboard's reportable assets under management as of December 31, 2025, highlighting Clearwater's importance in its portfolio and potentially attracting more investor interest.
- Market Performance Analysis: As of February 17, 2026, Clearwater's shares were priced at $22.93, down 17.0% over the past year and underperforming the S&P 500 by 26.7 percentage points, reflecting market concerns about its future growth prospects.
- Business Model and Challenges: Clearwater Analytics focuses on automated investment data management, and while its cloud platform provides steady recurring revenue, the complexities of client onboarding and data integration may hinder margin growth, prompting investors to monitor whether revenue growth can outpace service delivery costs.
See More
Investor Rights Law Firm Investigates Transactions
- Transaction Investigation: Halper Sadeh LLC is investigating the sale of European Wax Center, Inc. (NASDAQ:EWCZ) to General Atlantic for $5.80 per share in cash, potentially indicating breaches of fiduciary duties that could affect shareholder rights.
- Cash Acquisition: Clearwater Analytics Holdings, Inc. (NYSE:CWAN) is being sold to Permira and Warburg Pincus for $24.55 per share in cash, with Halper Sadeh LLC possibly seeking increased consideration or other remedies to protect shareholder interests.
- Merger Review: The merger of Bakkt Holdings, Inc. (NYSE:BKKT) with Distributed Technologies Research Ltd. is under investigation, with Halper Sadeh LLC representing shareholders to seek additional disclosures and transparency to safeguard their rights.
- Legal Support: Halper Sadeh LLC offers legal consultations without upfront fees, aiming to assist investors affected by securities fraud and corporate misconduct, ensuring their rights are upheld.
See More
