Insider Trading February 20, 2026

Clearwater Analytics executive sells $1.8M in stock as firm weathers deal-driven downgrades

Chief Client Officer Subi Sethi offloads shares while performance units vest amid go-shop closure and strategic wins

By Hana Yamamoto CWAN
Clearwater Analytics executive sells $1.8M in stock as firm weathers deal-driven downgrades
CWAN

On February 18, 2026, Clearwater Analytics Holdings Inc.'s Chief Client Officer Subi Sethi sold 76,689 Class A shares for roughly $1.8 million and simultaneously saw 164,998 performance stock units vest. The stock has endured mixed performance and analyst scrutiny following the close of a go-shop period tied to a merger agreement. Separately, the firm won a substantial multi-year mandate from Generali Deutschland.

Key Points

  • Chief Client Officer Subi Sethi sold 76,689 Class A shares on February 18, 2026 for $23.4417 each, totaling $1,797,720.
  • On the same day 164,998 Class A shares vested from performance stock units at a recorded price of $0.00, with a notional value of $0.
  • The company concluded a go-shop period without receiving alternative offers; subsequent downgrades from Morgan Stanley, UBS, and DA Davidson followed, while Clearwater secured a 0 billion multi-year mandate from Generali Deutschland.

Transaction details

Clearwater Analytics Holdings Inc (NASDAQ:CWAN) Chief Client Officer Subi Sethi executed an open-market sale of 76,689 shares of Class A Common Stock on February 18, 2026. The shares were sold at $23.4417 apiece, producing gross proceeds of $1,797,720.

On the same date, Sethi saw 164,998 Class A Common Stock shares credited through the vesting of performance stock units. Those shares were recorded at a price of $0.00 per share for a notional total value of $0, reflecting the mechanics of the PSU vesting rather than a cash purchase.


Share price and recent performance

The stock has been trading near $23.3, according to the same reporting, and has posted a 22% decline over the past year despite a 19% recovery across the most recent six-month period.


Analyst context and valuation signals

InvestingPro analysis referenced in the report indicates Clearwater Analytics' shares are currently slightly overvalued on its Fair Value metrics. The same analysis notes that analysts forecasting the company expect it to be profitable this year. The InvestingPro service is cited as offering seven additional tips for investors seeking deeper context on CWAN.


M&A process and market reaction

The company recently concluded a go-shop period tied to a merger agreement that involved Permira and Warburg Pincus, among others, and that period ended without any alternative acquisition proposals. Following the close of the go-shop, Clearwater Analytics experienced multiple analyst downgrades: Morgan Stanley lowered its stance from Overweight to Equalweight, while UBS and DA Davidson each moved from Buy to Neutral and established a price target of $24.55. Those rating changes were attributed in the reporting to the acquisition agreement and the termination of the go-shop window.


Client mandate win

Separately, Clearwater Analytics secured a multi-year agreement with Generali Deutschland to manage its unit-linked fund life insurance business, a mandate covering approximately 0 billion. The engagement will consolidate several investment management processes onto a single platform, a strategic client win highlighted alongside the transaction and analyst activity.


Bottom line

The insider sale and concurrent PSU vesting, the analyst downgrades following the closed go-shop period, and the new multi-year agreement with Generali Deutschland are presented together in the reporting as contemporaneous developments that continue to shape market and investor attention on Clearwater Analytics.

Risks

  • Analyst downgrades tied to the acquisition agreement and the end of the go-shop period may pressure investor sentiment and stock performance - impacts the financial software and M&A-sensitive segments of the market.
  • The InvestingPro assessment that the stock is slightly overvalued introduces valuation risk for prospective buyers - affects equity investors and portfolio managers evaluating CWAN.
  • Concentration risk around transaction outcomes: the lack of competing acquisition offers during the go-shop may limit strategic alternatives, influencing M&A dynamics in the financial software and private equity arenas.

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