Clarivate (NYSE:CLVT) Updates FY25 Earnings Forecast

Clarivate (NYSE:CLVT) announced an update to its earnings guidance for the fiscal year 2025 on Wednesday. The company has provided an expected earnings per share (EPS) range of $0.60 to $0.70. This projection is below the consensus EPS estimate of $0.73, indicating that analysts are more optimistic than the company's new guidance. Additionally, Clarivate has laid out revenue expectations between $2.28 billion and $2.40 billion, which also falls short of the consensus revenue expectation of $2.53 billion.

Recent Analyst Opinions

Recently, several brokerages have reassessed their ratings for Clarivate stocks. On November 6th, William Blair downgraded the stock from an "outperform" to a "market perform" rating. Following that, on November 7th, Royal Bank of Canada reduced its price target for Clarivate shares from $7.00 to $6.00, maintaining a "sector perform" rating. Similarly, Barclays also lowered its target price from $5.00 to $4.00 and gave the stock an "underweight" rating. Overall, one analyst has suggested selling the stock, three maintained hold ratings, and two recommended buying it. MarketBeat data indicates a consensus rating of "Hold" for the stock, with an average target price of $7.10.

Clarivate Stock Overview

On Wednesday, shares of Clarivate experienced a slight decline of $0.08, bringing the stock price to $4.76. During the trading session, approximately 20.5 million shares changed hands, significantly higher than its average volume of around 5 million shares. The company holds a market capitalization of $3.38 billion and has a price-to-earnings (P/E) ratio of -2.39. Clarivate's stock has fluctuated between a low of $4.22 and a high of $9.07 over the past year, with its 50-day and 200-day moving averages sitting at $5.15 and $5.82, respectively.

Share Repurchase Program

In an encouraging move, the Board of Directors at Clarivate authorized a share repurchase program on December 16th, allowing the company to buy back up to $500 million worth of its shares. This program permits the company to purchase up to 12.8% of its outstanding stock in open market transactions, a common practice reflecting management’s belief in the current undervaluation of the company's shares.

Insider Transactions

In noteworthy insider trading news, director Michael J. Angelakis acquired 765,000 shares of the company on November 22nd. The shares were purchased at an average price of $5.19, totaling nearly $4 million. Following this transaction, Angelakis now holds a total of 3,465,000 shares in the company, valued at approximately $18 million, representing a significant 28.33% increase in his holdings. Company insiders overall possess about 23.14% of the company’s stock.

About Clarivate

Clarivate Plc serves as an information services provider across various regions, including the Americas, Europe, and Asia-Pacific. The company is structured into three divisions: Academia & Government, Life Sciences & Healthcare, and Intellectual Property. It offers a range of services, such as Web of Science and InCites for academic research management, comprehensive content collections via ProQuest One and Ebook Central, and resource management tools like Alma and Polaris.

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