CommVault Systems (NASDAQ: CVLT) received renewed attention from investors as Stephens initiated coverage on the software company with an overweight rating and a target price of $162.00. The announcement, made on Tuesday, October 31, 2023, highlights the growing confidence in CommVault’s potential amid a competitive market.
Several analysts have also recently weighed in on CommVault’s stock. Baird R W upgraded the company to a “strong-buy” rating and set a price objective of $215.00 in a note released on October 27, 2023. Oppenheimer followed suit with an outperform rating on November 10, 2023. In contrast, KeyCorp adjusted its target price from $225.00 to $185.00 while maintaining an overweight rating, reflecting a cautious yet positive outlook. Guggenheim reaffirmed a buy rating and issued a target of $220.00 on October 16, 2023.
Overall, CommVault Systems has garnered a consensus rating of “Moderate Buy” from analysts, with two analysts rating it as a strong buy, ten as a buy, and four as a hold. The average price target currently stands at $191.92, according to MarketBeat.
Recent Earnings Report and Stock Performance
On October 28, 2023, CommVault Systems reported its quarterly earnings, revealing earnings per share of $0.91. This figure fell short of the consensus estimate of $0.95 by $0.04. The company recorded a net margin of 7.32% and a return on equity of 31.53%, highlighting its financial strength despite the earnings miss. Revenue for the quarter reached $276.19 million, surpassing analyst forecasts of $273.31 million, marking an 18.4% increase compared to the same period last year.
Analysts predict that CommVault will achieve an annual earnings per share of $1.65 for the current fiscal year, suggesting a forward-looking optimism about its financial performance.
Insider Trading and Institutional Holdings
In recent insider trading activity, CEO Sanjay Mirchandani sold 14,653 shares of CommVault on November 18, 2023, at an average price of $123.65, totaling approximately $1.81 million. Following the sale, Mirchandani retains 372,369 shares, valued at about $46.04 million, indicating a 3.79% reduction in his ownership stake.
Additionally, Gary Merrill, another insider, sold 2,674 shares on the same day for around $330,452.92. Insiders collectively sold 33,111 shares valued at approximately $4.06 million over the past three months, and currently, insiders hold 1.00% of the company’s stock.
Institutional investors have been actively adjusting their positions in CommVault Systems. Notably, the State of Wyoming acquired a new stake worth approximately $35,000 in the second quarter. Other institutions like Banque Cantonale Vaudoise and Cullen Frost Bankers Inc. have also increased their holdings. Currently, institutional and hedge fund investors own 93.50% of the company’s stock, reflecting strong institutional confidence in CommVault’s future.
CommVault Systems, headquartered in Tinton Falls, New Jersey, specializes in data protection and information management software. Established in 1996, the company offers a range of integrated products designed to help organizations manage, protect, and activate data across various environments. Its flagship solutions, including Commvault Complete Data Protection and the SaaS-based Metallic portfolio, underscore its commitment to providing scalable and automated data management capabilities.
As CommVault Systems continues to navigate market dynamics, analysts will be keeping a close eye on its performance and strategic initiatives to maintain its competitive edge in the data management landscape.
