CWAN Stock Analysis: Buy, Sell, or Hold?

CWAN - Clearwater Analytics Holdings, Inc.

SERVICES-PREPACKAGED SOFTWARE
$23.65
0.10 (0.42%) ▲
5d: +1.98%
30d: +0.51%
90d: -1.87%
HOLD
MODERATE Confidence
Protect Your CWAN Gains
Analysis Updated: Mar 31, 2026 12:00 AM ET
Earnings: Apr 29, 2026 27d
Smart Money Accumulation

CWAN is down 3.9% this week, but smart money is accumulating calls. Top strike: $22.5 2026-05-15 with 5,445 OI. Call ratio: 81% View Scanner →

Strength: 5.1/10

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Interactive Price Chart (1 Month)

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💡
Bottom Line:
📊 HOLD: CWAN shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.

Long-Term Wealth Forecast (2031)

Based on Analyst Consensus Growth & Historical Valuation

0% (Stagnation) 50% (Hyper Growth)
EST. PRICE IN 2031
$0.84
Based on -29.3% avg growth
INTRINSIC VALUE TODAY
$0.52
Trading above fair value

How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 25.0x Exit PE.

In-depth Analysis How we analyze

Valuation Analysis: CWAN is currently trading at $23.65, which is considered extended relative to its 30-day fair value range of $23.24 to $23.52. From a valuation perspective, the stock is trading at a discount (Forward PE: 91.0) compared to its historical average (104.0). Remarkably, the market is currently pricing in an annual earnings decline of 4.4% over the next few years. This pessimistic expectation contrasts with the company's recent 202.8% earnings growth, suggesting potential undervaluation if the company simply maintains stability.

Technical Outlook: Technically, CWAN is in a strong downtrend. The price is currently testing key support at $23.18. A bounce from this level would confirm strength, while a break below could signal further downside.

Market Sentiment: CWAN has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.

Quick Decision Summary

Current Position EXTENDED
Fair Price Range $23.24 - $23.52
Company Quality Score 63/100 (BUY)
Volume Confirmation HIGH
Confidence Score 57.1%

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All Signals

  • BEARISH: Price extended above range
  • BULLISH: Strong technical setup (60/100)
  • BULLISH: High volume confirmation
  • NEUTRAL: Near Wall St target ($24.47)

Fair Price Analysis

30-Day Fair Range $23.24 - $23.52
Current vs Fair Value EXTENDED

Support & Resistance Levels

Support Level $23.18
Resistance Level $23.66
Current Trend Strong Downtrend
Technical data as of Mar 31, 2026

Fundamental Context

Forward P/E (Next Year Est.) 90.96
Wall Street Target $24.47 (+3.5%)
Revenue Growth (YoY) 72.0%
Earnings Growth (YoY) 202.8%
Profit Margin -5.3%
Valuation Discount vs History -4.4% cheaper
PE vs Historical 91.0 vs 104.0 CHEAP
Market-Implied Price Targets If current PE multiple persists
Implied Growth (YoY): -4.4% (market-implied from PE analysis)
1-Year Target $22.61 (-4%)
2-Year Target $21.61 (-9%)
3-Year Target $20.66 (-13%)
3-Yr Target (if PE normalizes) (PE: 91→104) $23.63 (0%)
3-Year Scenarios Using analyst projected EPS growth
Bull: (PE: 91.0, Growth: -62.6%) $17.24 (+-27%)
Base: (SPY PE: 22.4, Growth: -62.6%) $4.24 (-82%)
Bear: (PE: 19.0, Growth: -62.6%) $3.60 (-85%)
💡 Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 91.0 to 104.0
Stabilization Target: $27.04 (+14.3%)
PE Expansion Potential: +14.3%
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Last updated: March 31, 2026 8:08 PM ET
Data refreshes hourly during market hours. Next update: 9:08 PM
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Ticker Score Recommendation Change %
Insider Activity (6 Months)
0
Buys
20
Sells
Net
INSIDERS SELLING
Recent Transactions
James S Cox SELL 18700 shares 2026-03-16
Souvik Das SELL 10000 shares 2026-03-09
James S Cox SELL 93930 shares 2026-02-18

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Advanced CWAN Option Strategies

Professional options setups generated by AI based on today's CWAN price and gamma walls.

Iron Condor Bull Call Bear Put Collar

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