CommVault Systems (NASDAQ: CVLT) has recently attracted attention from investment firms, with Stephens initiating coverage of the software company and issuing an overweight rating along with a target price of $162.00. This development was highlighted in a research note released to investors on October 27, 2023, marking a significant moment for the company.
In addition to Stephens’ coverage, other firms have also analyzed CommVault’s potential. Robert W. Baird upgraded the stock to a strong-buy rating on the same day, setting a more ambitious target price of $215.00. Oppenheimer followed suit, granting an outperform rating in a report released on November 10, 2023. Meanwhile, KeyCorp adjusted their target price downward from $225.00 to $185.00, maintaining an overweight rating. Overall, the consensus rating from analysts is classified as a “Moderate Buy,” with a projected price target of $191.92.
CommVault recently announced its quarterly earnings on October 28, 2023, reporting earnings per share of $0.91. This figure fell short of the consensus estimate of $0.95 by $0.04. The company showed a net margin of 7.32% and a return on equity of 31.53%. CommVault’s revenue for the quarter was $276.19 million, surpassing analyst expectations of $273.31 million. Year-on-year, revenue increased by 18.4% compared to the same period in the previous year.
In executive trading news, CEO Sanjay Mirchandani sold 14,653 shares of CommVault stock on November 18, 2023, at an average price of $123.65, totaling approximately $1.81 million. Following this transaction, Mirchandani still holds 372,369 shares valued at around $46.04 million. This sale indicates a 3.79% decrease 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 nearly $330,453. Following this transaction, Merrill’s remaining shares total 69,163, valued at around $8.55 million, reflecting a 3.72% decrease in his ownership.
In terms of institutional trading, various hedge funds and investors have recently adjusted their positions in CommVault. For example, the State of Wyoming acquired a new stake worth approximately $35,000 in the second quarter. Banque Cantonale Vaudoise also entered the market during the third quarter with an investment of $39,000. Cullen Frost Bankers Inc. increased its holdings by 43.8%, now owning 243 shares worth about $46,000 after acquiring additional shares.
As of now, institutional investors and hedge funds control an impressive 93.50% of CommVault’s stock, underscoring the company’s strong backing in the financial market.
Founded in 1996 and headquartered in Tinton Falls, New Jersey, CommVault Systems is a leading provider of data protection and information management software. The firm specializes in helping organizations manage, protect, and activate data across both on-premises and cloud environments. Its comprehensive suite of products includes the flagship Commvault Complete Data Protection and the SaaS-based Metallic portfolio, designed to enhance data management capabilities for enterprises.
