CommVault Systems (NASDAQ: CVLT) has garnered significant attention in the financial markets following a recent report from Stephens, which initiated coverage with an overweight rating and a target price of $162.00. This move signals a growing confidence in the software maker, as analysts continue to evaluate its performance and potential in the data protection and information management sector.
Several other financial institutions have also weighed in on CommVault’s stock. On October 27, 2023, Robert W. Baird upgraded the company to a strong-buy rating, setting an ambitious price target of $215.00. Oppenheimer followed suit on November 10, 2023, by initiating coverage with an outperform rating. KeyCorp, while maintaining an overweight rating, adjusted its target price from $225.00 to $185.00 on October 29, 2023. Additionally, Guggenheim reaffirmed a buy rating with a target of $220.00 on October 16, 2023.
Analysts have shown a consensus rating of Moderate Buy for CommVault Systems, with an average price target of $191.92 across ratings. The stock has received two Strong Buy ratings, ten Buy ratings, and four Hold ratings from various analysts.
Recent Earnings Performance
CommVault Systems reported its latest quarterly earnings on October 28, 2023. The company posted earnings per share (EPS) of $0.91, which fell short of the consensus estimate of $0.95 by $0.04. Despite this, the company achieved revenue of $276.19 million, surpassing analyst estimates of $273.31 million. This figure represents an increase of 18.4% compared to the same quarter last year. The company also noted a net margin of 7.32% and a return on equity of 31.53%. Analysts predict that CommVault Systems will report an EPS of $1.65 for the current fiscal year.
Insider Transactions and Institutional Holdings
In related news, CEO Sanjay Mirchandani sold 14,653 shares of the company on November 18, 2023, at an average price of $123.65, totaling approximately $1.81 million. Following this transaction, Mirchandani retains 372,369 shares, valued at around $46 million. This sale represents a 3.79% reduction in his ownership stake.
Another insider, Gary Merrill, sold 2,674 shares on the same day at an average price of $123.58, amounting to about $330,453. Merrill now owns 69,163 shares, valued at approximately $8.55 million, reflecting a 3.72% decrease in his holdings. Over the past three months, insiders have collectively sold 33,111 shares of company stock, valued at around $4.06 million. Currently, insiders hold 1.00% of the company’s stock.
Institutional interest in CommVault Systems remains robust. Recent activities indicate that State of Wyoming acquired a new position worth approximately $35,000 in the second quarter. Banque Cantonale Vaudoise purchased shares valued at around $39,000 in the third quarter. Cullen Frost Bankers Inc. increased its stake by 43.8%, owning 243 shares worth $46,000 after purchasing an additional 74 shares. Additionally, Assetmark Inc. boosted its holdings by 2,950%, now owning 244 shares valued at $46,000. Overall, institutional investors and hedge funds hold approximately 93.50% of CommVault Systems’ stock.
CommVault Systems, headquartered in Tinton Falls, New Jersey, specializes in data protection and information management software. The company’s solutions are designed to help organizations manage, protect, and activate data across both on-premises and cloud environments. With a legacy dating back to 1996, CommVault offers a suite of integrated products that facilitate data backup, recovery, archiving, and analysis, positioning it as a key player in the evolving tech landscape.
