Clarivate Updates FY25 Earnings Guidance

On Wednesday, Clarivate (NYSE:CLVT) announced an update to its earnings guidance for the fiscal year 2025. The company projected earnings per share (EPS) in the range of $0.60 to $0.70, which is lower than the consensus estimate of $0.73. In terms of revenue, Clarivate expects to generate between $2.28 billion and $2.40 billion, also falling short of the consensus estimate of $2.53 billion.

Recent Analyst Ratings

Several financial institutions have recently provided their insights regarding Clarivate’s stock. For instance, on November 6, William Blair downgraded the company's rating from "outperform" to "market perform." Similarly, Royal Bank of Canada reduced its target price from $7.00 to $6.00 while maintaining a "sector perform" rating. Barclays took a more cautious approach, lowering the target price from $5.00 to $4.00 and assigning an "underweight" rating.

Currently, investment ratings for the stock are varied: one analyst has rated it a "sell," three have a "hold" rating, and two have given a "buy" rating. Data from MarketBeat indicates that Clarivate has a consensus rating of "Hold" with a target price of $7.10.

Stock Performance Overview

During trading on Wednesday, Clarivate's stock price declined by $0.08, bringing it down to $4.76. The trading volume exceeded the average, with over 20 million shares traded compared to an average volume of approximately 5 million. The company's financial metrics show a quick ratio and current ratio of 0.88, a debt-to-equity ratio of 0.84, and a market capitalization of $3.38 billion. The price-to-earnings (P/E) ratio is noted at -2.39, and the stock has encountered a one-year low of $4.22 and a high of $9.07. Its fifty-day moving average is $5.15 while the 200-day moving average stands at $5.82.

Share Repurchase Program

Citing confidence in its valuation, Clarivate's Board of Directors authorized a share repurchase program allowing the company to buy back up to $500 million worth of its shares. This program permits the buyback of up to 12.8% of its outstanding stock through transactions in the open market.

Insider Activity

In related news, a significant insider transaction occurred when Director Michael J. Angelakis acquired 765,000 shares at an average price of $5.19 per share on November 22. The total transaction value was $3,970,350 and after this purchase, Angelakis holds a total of 3,465,000 shares—a 28.33% increase in their stake in the company. Company insiders currently own 23.14% of Clarivate's stock.

Company Overview

Clarivate Plc operates as an information services provider and has a presence in regions including the Americas, Europe, the Middle East, Africa, and Asia Pacific. The company is delineated into three primary segments: Academia & Government, Life Sciences & Healthcare, and Intellectual Property. Clarivate offers tools such as Web of Science and InCites for academic research analysis, as well as ProQuest One and Ebook Central for comprehensive content collections tailored for institutions.

Clarivate, guidance, EPS