Principal Financial Group Inc. Increases Stake in Clear Secure, Inc.

Principal Financial Group Inc. has significantly increased its investment in Clear Secure, Inc. (NYSE:YOU - Free Report) by a staggering 3,937.1% during the third quarter. This information comes from the firm’s recent filing with the Securities and Exchange Commission (SEC). Following this purchase, Principal Financial Group Inc. now holds a total of 478,760 shares of Clear Secure's stock, having acquired an additional 466,901 shares in the recent quarter. As of the end of the last quarter, Principal Financial Group Inc.’s holdings represented approximately 0.34% of Clear Secure, valued at $15,866,000.

In addition to Principal Financial Group, several other institutional investors have been active in buying and selling shares of Clear Secure recently. Notably, Lord Abbett & Co. LLC established a new position in the company with an investment valued at approximately $20,243,000. Similarly, Franklin Resources Inc. increased its stake by 10.9% during the same quarter, resulting in ownership of 46,175 shares worth around $1,612,000 after adding 4,527 shares. Other firms, such as Tidal Investments LLC and Sanctuary Advisors LLC, also invested in Clear Secure, with positions worth about $1,026,000 and $965,000 respectively. Overall, institutional investors own 73.80% of the company's stock, indicating strong institutional interest.

Insider Transactions

In first-hand updates regarding Clear Secure, Director Alclear Investments II, LLC recently sold 150,000 shares at an average price of $34.08 on October 11, amounting to a total transaction value of $5,112,000. This sale was documented in a filing with the SEC, which is publicly accessible. Insiders currently own 37.85% of the company’s stock, showing a significant insider stake as well.

Price Performance of Clear Secure

As of Friday, shares of NYSE:YOU opened at $27.22. The firm has a market capitalization of $3.79 billion, a price-to-earnings ratio of 31.65, and a beta of 1.43. Its stock has a 50-day simple moving average of $29.28, and a 200-day moving average of $27.02. Over the past year, the stock has fluctuated, reaching a fifty-two week low of $16.05 and a high of $38.88.

On November 7, Clear Secure, Inc. released its latest earnings results, reporting earnings of $0.30 per share for the quarter, which fell short of analyst expectations of $0.33 by $0.03. The company recorded a return on equity of 48.28%, alongside a net margin of 10.93%. The reported revenue for the quarter was $198.40 million, surpassing the analyst estimate of $194.62 million. Comparing to the same quarter last year, the revenue reflected a year-over-year increase of 23.7%. Analysts predict that Clear Secure, Inc. will post an earnings per share figure of 0.98 for the current fiscal year.

Dividend Increase

Recently, the company announced a quarterly dividend, which was disbursed on December 17 to stockholders of record on December 10, at a rate of $0.125 per share. This translates to an annualized dividend of $0.50, equating to a dividend yield of 1.84%. The ex-dividend date was also December 10. This new dividend payment reflects an increase from the prior quarterly dividend of $0.10, with a payout ratio noted at 58.14%.

Analyst Reccommendations

Several research firms have recently commented on the stock. Telsey Advisory Group raised their target price for Clear Secure shares from $34.00 to $42.00, issuing an “outperform” rating. Wedbush maintained a “neutral” rating while increasing its price target from $24.00 to $26.00. Additionally, Needham & Company LLC reaffirmed a “buy” rating with a price objective of $45.00. Stifel Nicolaus also raised their target price on the stock, from $24.00 to $32.00, assigning a “hold” rating. In summary, two analysts have rated the stock as a hold, while three suggest a buy. Market data indicates an average rating of “Moderate Buy” for Clear Secure, with a consensus price target of $35.20.

Company Overview

Clear Secure, Inc. operates a secure identity platform under the CLEAR brand primarily in the United States. The company's secure identity platform is built on a multi-layered infrastructure that includes both front-end services, such as enrollment and verification, and back-end systems. Moreover, the firm offers CLEAR Plus, a consumer aviation subscription that allows access to dedicated entry lanes at airport security checkpoints, enhancing the travel experience through expedited processing. Supporting this service is the CLEAR mobile app, designed for new member enrollment and the improvement of existing member experiences.

Investment, Stocks, Earnings