Clarivate (NYSE:CLVT) Shares Gap Up – Should You Buy?

Clarivate Plc (NYSE:CLVT) gapped up prior to trading on Monday . The stock had previously closed at $5.11, but opened at $5.41. Clarivate shares last traded at $5.46, with a volume of 681,935 shares.

Wall Street Analyst Weigh In

Several research firms have recently commented on CLVT. William Blair downgraded shares of Clarivate from an “outperform” rating to a “market perform” rating in a research note on Wednesday, November 6th. Royal Bank of Canada dropped their price target on Clarivate from $7.00 to $6.00 and set a “sector perform” rating on the stock in a research note on Thursday, November 7th. Finally, Barclays reduced their price objective on Clarivate from $5.00 to $4.00 and set an “underweight” rating for the company in a research note on Thursday, November 7th. One research analyst has rated the stock with a sell rating, three have given a hold rating and two have given a buy rating to the stock. According to data from MarketBeat, Clarivate has a consensus rating of “Hold” and an average target price of $7.10.

Clarivate Stock Performance

The company has a market capitalization of $3.88 billion, a PE ratio of -2.74 and a beta of 1.12. The firm’s fifty day simple moving average is $5.79 and its 200 day simple moving average is $6.07. The company has a debt-to-equity ratio of 0.84, a current ratio of 0.88 and a quick ratio of 0.88.

Clarivate (NYSE:CLVT) last announced its quarterly earnings results on Wednesday, November 6th. The company reported $0.19 earnings per share for the quarter, meeting the consensus estimate of $0.19. Clarivate had a positive return on equity of 9.69% and a negative net margin of 50.00%. The company had revenue of $622.20 million during the quarter, compared to analysts’ expectations of $640.81 million. During the same period last year, the business earned $0.18 earnings per share. Clarivate’s quarterly revenue was down 3.9% on a year-over-year basis. On average, research analysts predict that Clarivate Plc will post 0.63 EPS for the current year.

Clarivate declared that its board has initiated a stock repurchase plan on Monday, December 16th that permits the company to repurchase $500.00 million in shares. This repurchase authorization permits the company to repurchase up to 12.8% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s board of directors believes its stock is undervalued.

Insider Activity at Clarivate

In other Clarivate news, Director Michael J. Angelakis purchased 1,500,000 shares of the stock in a transaction on Wednesday, November 20th. The shares were bought at an average price of $5.11 per share, for a total transaction of $7,665,000.00. Following the completion of the transaction, the director now owns 1,500,000 shares of the company’s stock, valued at $7,665,000. This trade represents a ∞ increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, insider Bar Veinstein sold 60,000 shares of the business’s stock in a transaction that occurred on Tuesday, October 15th. The shares were sold at an average price of $7.00, for a total value of $420,000.00. Following the completion of the sale, the insider now owns 916,583 shares of the company’s stock, valued at $6,416,081. This trade represents a 6.14 % decrease in their ownership of the stock. The disclosure for this sale can be found here. 23.14% of the stock is owned by company insiders.

Institutional Trading of Clarivate

Several institutional investors have recently modified their holdings of CLVT. Baupost Group LLC MA raised its position in shares of Clarivate by 27.2% during the 2nd quarter. Baupost Group LLC MA now owns 38,929,635 shares of the company’s stock worth $221,510,000 after purchasing an additional 8,331,233 shares during the last quarter. Dimensional Fund Advisors LP lifted its position in shares of Clarivate by 19.5% in the second quarter. Dimensional Fund Advisors LP now owns 14,752,994 shares of the company’s stock valued at $83,945,000 after acquiring an additional 2,409,470 shares in the last quarter. Thompson Siegel & Walmsley LLC lifted its position in shares of Clarivate by 31.5% in the second quarter. Thompson Siegel & Walmsley LLC now owns 9,726,504 shares of the company’s stock valued at $55,344,000 after acquiring an additional 2,332,388 shares in the last quarter. Brown Brothers Harriman & Co. boosted its stake in shares of Clarivate by 37.5% in the second quarter. Brown Brothers Harriman & Co. now owns 6,249,260 shares of the company’s stock worth $35,558,000 after acquiring an additional 1,704,761 shares during the last quarter. Finally, Clearline Capital LP increased its position in shares of Clarivate by 141.2% during the second quarter. Clearline Capital LP now owns 2,088,422 shares of the company’s stock worth $11,883,000 after purchasing an additional 1,222,646 shares in the last quarter. Institutional investors and hedge funds own 85.72% of the company’s stock.

Clarivate Company Profile

Clarivate Plc operates as an information services provider in the Americas, the Middle East, Africa, Europe, and the Asia Pacific. It operates through three segments: Academia & Government, Life Sciences & Healthcare, and Intellectual Property. The company offers Web of Science and InCites, that analyzes and explores the academic research landscape and manages research information; ProQuest One and Ebook Central that provides comprehensive content collections to institutions in a cost-effective manner; and Alma and Polaris, that manages academic resources and services, connect users, and support research publications.