Investors Eye on Clearwater Analytics Holdings’ (CWAN) Acquisitions

Conestoga Capital Advisors, an asset management company, released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The second quarter began with a historically poor start but gained momentum later as tariff fears subsided and market volatility dropped precipitously. Conestoga Small Cap Composite returned 4.76% in the quarter compared to 11.97% for the Russell 2000 Growth Index. Please check the top 5 holdings of the fund for a better understanding of their best picks for 2025.

In its second quarter 2025 investor letter, Conestoga Capital Advisors highlighted stocks such as Clearwater Analytics Holdings, Inc. (NYSE:CWAN). Clearwater Analytics Holdings, Inc. (NYSE:CWAN) is a technology company that develops and provides a Software-as-a-Service (SaaS) for investment analytics and reporting solutions. The one-month return of Clearwater Analytics Holdings, Inc. (NYSE:CWAN) was -3.95%, and its shares gained 2.57% of their value over the last 52 weeks. On July 24, 2025, Clearwater Analytics Holdings, Inc. (NYSE:CWAN) stock closed at $21.13 per share, with a market capitalization of $5.988 billion.

Conestoga Capital Advisors stated the following regarding Clearwater Analytics Holdings, Inc. (NYSE:CWAN) in its second quarter 2025 investor letter:

“Clearwater Analytics Holdings, Inc. (NYSE:CWAN): CWAN is a leading SaaS-based software platform for automating investment accounting and analytics. CWAN shares were weak during the 2Q. While the 1Q results were above expectations, the 2Q revenue guidance was below the consensus estimate. Investors are also focused on three acquisitions the company has announced in 2025. We believe the acquisitions bring attractive long-term opportunities to CWAN but, as with any acquisition, there are near-term execution risks as these companies are integrated into the company.”

Is Clearwater Analytics Holdings Inc. (CWAN) the Best Low Beta Tech Stock to Buy According to Analysts?

A wide shot of a large financial data center.

Clearwater Analytics Holdings, Inc. (NYSE:CWAN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 41 hedge fund portfolios held Clearwater Analytics Holdings, Inc. (NYSE:CWAN) at the end of the first quarter, which was 88 in the previous quarter. In the first quarter of 2025, Clearwater Analytics Holdings, Inc. (NYSE:CWAN) reported revenue of $126.9 million, representing an increase of 23.5% year-on-year. While we acknowledge the risk and potential of Clearwater Analytics Holdings, Inc. (NYSE:CWAN) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Clearwater Analytics Holdings, Inc. (NYSE:CWAN) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Clearwater Analytics Holdings, Inc. (NYSE:CWAN) and shared Alger Mid Cap Focus Fund’s views on the company. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.