CommVault Systems (NASDAQ: CVLT) has garnered attention from analysts as Stephens initiated coverage on the company, issuing an overweight rating and setting a price target of $162.00. This comes amid a wave of recent assessments that reflect growing confidence in the software maker’s performance.
On October 27, 2023, Robert W. Baird upgraded CommVault to a “strong-buy” rating, with a price objective of $215.00. Similarly, Oppenheimer began coverage with an “outperform” rating on November 10, while KeyCorp adjusted its target price down from $225.00 to $185.00, maintaining an overweight rating. Guggenheim also reaffirmed its “buy” rating with a target of $220.00 as of October 16.
Analysts currently reflect a consensus rating of “Moderate Buy” for CommVault, with an average price target of $191.92. Among the analysts, two have rated the stock as a strong buy, ten as a buy, and four as hold.
Recent Earnings Report
CommVault released its quarterly earnings results on October 28, 2023, reporting 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 a net margin of 7.32% and a return on equity of 31.53%. The reported revenue for the quarter was $276.19 million, surpassing analyst expectations of $273.31 million. This marks an 18.4% increase in revenue compared to the same quarter last year.
Looking ahead, analysts project that CommVault will post an EPS of 1.65 for the current fiscal year.
Insider Activity
In related developments, CEO Sanjay Mirchandani sold 14,653 shares of the company’s stock on November 18, 2023, at an average price of $123.65, totaling approximately $1.81 million. Following this transaction, Mirchandani’s remaining shares amount to 372,369, valued at around $46 million, marking a 3.79% reduction in his holdings.
Additionally, insider Gary Merrill sold 2,674 shares at an average price of $123.58, amounting to about $330,453. After the sale, Merrill retained 69,163 shares valued at approximately $8.55 million, indicating a 3.72% decrease in his ownership. In total, insiders sold 33,111 shares valued at roughly $4.06 million over the past three months, with insiders holding 1.00% of the company’s stock.
Institutional Investment Trends
Institutional investors have also been active, with various firms adjusting their stakes in CommVault. The State of Wyoming acquired a new position in the second quarter valued at approximately $35,000. Banque Cantonale Vaudoise also purchased a new position in the third quarter for around $39,000.
Cullen Frost Bankers Inc. increased its stake by 43.8% in the same quarter, now owning 243 shares valued at $46,000. Assetmark Inc. significantly boosted its holdings by 2,950.0%, owning 244 shares valued at $46,000 after acquiring an additional 236 shares. Meanwhile, EverSource Wealth Advisors LLC raised its stake by 188.3%, now holding 271 shares valued at $47,000.
Currently, institutional investors and hedge funds own 93.50% of CommVault’s stock, showcasing strong institutional confidence in the company’s future prospects.
CommVault Systems, headquartered in Tinton Falls, New Jersey, is a leading provider of data protection and information management software. Founded in 1996, the company offers integrated products designed for data management across both on-premises and cloud environments.
