CommVault Systems (NASDAQ: CVLT) has attracted attention from investment analysts following the initiation of coverage by Stephens. In a research note released on Tuesday, October 31, 2023, the brokerage firm assigned an overweight rating and a target price of $162.00 for the software company’s stock. This move comes amidst a flurry of recent ratings updates that highlight growing confidence in CommVault’s financial performance.
Several analysts have weighed in on CommVault’s stock in recent weeks. On October 27, 2023, Robert W. Baird upgraded its rating to “strong-buy” with a price target of $215.00. Oppenheimer also started coverage on the same day, setting an “outperform” rating. Meanwhile, KeyCorp adjusted its target price from $225.00 to $185.00, maintaining an overweight rating. Additionally, on October 16, 2023, Guggenheim reaffirmed a “buy” rating and a price target of $220.00.
Overall, the consensus rating for CommVault Systems stands at “Moderate Buy,” with a consensus price target of $191.92, according to MarketBeat data. Among analysts, two have issued a “Strong Buy” rating, ten have rated the stock as a “Buy,” and four have assigned a “Hold” rating.
CommVault’s Financial Performance
CommVault Systems recently reported its quarterly earnings on October 28, 2023. The company announced earnings per share (EPS) of $0.91, which fell short of the consensus estimate of $0.95 by $0.04. Despite this minor miss, CommVault reported a net margin of 7.32% and a return on equity of 31.53%.
During the quarter, the company generated revenue of $276.19 million, exceeding analyst expectations of $273.31 million. This marks an increase of 18.4% compared to the same period last year, when the firm posted an EPS of $0.83. Analysts project that CommVault will achieve an EPS of $1.65 for the current fiscal year.
Insider Trading Activity
In related news, insider trading activity has been notable. CEO Sanjay Mirchandani sold 14,653 shares of CommVault stock on November 18, 2023, at an average price of $123.65, resulting in a transaction value of approximately $1.81 million. Following the sale, Mirchandani retains 372,369 shares, valued at around $46 million, reflecting a 3.79% decrease in ownership.
Additionally, insider Gary Merrill sold 2,674 shares on the same day at an average price of $123.58, totaling approximately $330,453. After this transaction, Merrill holds 69,163 shares valued at $8.55 million, representing a 3.72% decrease in ownership. Over the past three months, insiders have sold a total of 33,111 shares valued at approximately $4.06 million, with insiders now owning 1.00% of the company’s stock.
Institutional Investment Trends
CommVault has also seen significant activity from institutional investors. In the second quarter of 2023, the State of Wyoming established a new position in CommVault shares valued at approximately $35,000. Banque Cantonale Vaudoise entered the third quarter with a new position worth $39,000.
Cullen Frost Bankers Inc. increased its stake by 43.8%, now owning 243 shares valued at $46,000. Assetmark Inc. reported a remarkable 2,950.0% increase in holdings, owning 244 shares after acquiring an additional 236. Furthermore, EverSource Wealth Advisors LLC raised its holdings by 188.3%, bringing its total to 271 shares worth $47,000.
Overall, institutional investors and hedge funds control 93.50% of CommVault’s stock, reflecting strong institutional confidence in the company’s prospects.
CommVault Systems, headquartered in Tinton Falls, New Jersey, provides data protection and information management software designed to help organizations manage their data across both on-premises and cloud environments. Founded in 1996, the company is known for its integrated products and services, including the Commvault Complete Data Protection and the SaaS-based Metallic solutions. These offerings facilitate scalable and automated data management across hybrid infrastructures, aiming to streamline operations and ensure data resilience.
