CommVault Systems (NASDAQ: CVLT) has garnered significant attention from investment analysts, with multiple firms recently initiating or upgrading their coverage. On October 27, 2023, Stephens issued an overweight rating and set a target price of $162.00 for the company’s stock. This follows a series of upgrades from various other brokerages, indicating a growing confidence in CommVault’s market position.
Among the notable upgrades, Robert W. Baird classified CommVault as a “strong-buy” with a price objective of $215.00. Oppenheimer also began coverage on the same day, designating the stock as an outperform. Conversely, KeyCorp revised its target price down from $225.00 to $185.00, while maintaining an overweight rating. Guggenheim reaffirmed a “buy” rating with a target of $220.00 on October 16, 2023.
Overall, a total of two analysts have assigned a strong buy rating, ten have given a buy rating, and four have issued a hold rating. According to data from MarketBeat, CommVault holds a consensus rating of “Moderate Buy” with a price target averaging $191.92.
Recent Earnings Performance
CommVault Systems reported its quarterly earnings on October 28, 2023, revealing earnings per share (EPS) of $0.91. This figure fell short of analyst expectations, which had forecasted an EPS of $0.95. Despite this, the company achieved a revenue of $276.19 million, surpassing estimates of $273.31 million. The firm experienced an 18.4% year-over-year revenue increase, with a net margin of 7.32% and a return on equity of 31.53%.
Analysts are forecasting that CommVault will report an EPS of $1.65 for the current year, indicating expectations of steady growth despite the recent earnings miss.
Insider Trading Activity
In related news, Sanjay Mirchandani, the CEO of CommVault, sold 14,653 shares 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, marking a 3.79% reduction in his ownership.
Additionally, insider Gary Merrill sold 2,674 shares on the same day, with a total value of $330,452.92. Merrill now holds 69,163 shares worth approximately $8.55 million, representing a 3.72% decrease in his stake. In total, insiders sold 33,111 shares valued at $4.06 million over the past three months, with insiders owning 1.00% of the company’s stock.
Institutional Investment Trends
Institutional investors have shown increasing interest in CommVault Systems. Recently, State of Wyoming acquired a new position in the second quarter, valued at approximately $35,000. Banque Cantonale Vaudoise entered the market during the third quarter with an investment of $39,000.
Cullen Frost Bankers Inc. raised its stake by 43.8%, now owning 243 shares valued at $46,000. Similarly, Assetmark Inc. boosted its holdings by a remarkable 2,950% to own 244 shares. Furthermore, EverSource Wealth Advisors LLC increased its stake by 188.3% during the second quarter, now owning 271 shares worth approximately $47,000.
In total, institutional investors and hedge funds control about 93.50% of CommVault’s stock, reflecting a robust confidence in the company’s future prospects.
CommVault Systems, founded in 1996 and headquartered in Tinton Falls, New Jersey, specializes in data protection and information management software, aimed at helping organizations manage and protect data across various platforms. The firm’s flagship offerings include Commvault Complete Data Protection and the SaaS-based Metallic portfolio, which cater to hybrid infrastructure environments.
