CommVault Systems (NASDAQ: CVLT) has recently attracted increased interest from analysts, receiving multiple upgrades in recent weeks. On October 28, 2023, Stephens initiated coverage with an “overweight” rating and set a target price of $162.00 for the software company’s stock, according to MarketBeat Ratings. This marks a significant endorsement from the brokerage, aligning with a broader trend of positive evaluations for CommVault.
Analysts from other financial institutions have also expressed optimism regarding CommVault. On October 27, Robert W. Baird upgraded the company to a “strong-buy” rating with a target price of $215.00. Oppenheimer added to the positive momentum on November 10, giving the stock an “outperform” rating. KeyCorp adjusted its outlook, lowering its target from $225.00 to $185.00 while maintaining an “overweight” rating. Meanwhile, Guggenheim reaffirmed its “buy” rating with a price target of $220.00.
Overall, CommVault has garnered a consensus rating of “Moderate Buy” from analysts, with a projected price target of $191.92. Notably, two analysts have rated the stock as a “Strong Buy,” while ten have given it a “Buy” rating, and four analysts have assigned a “Hold” rating.
Recent Earnings Performance
CommVault Systems reported its quarterly earnings on October 28, 2023, revealing earnings per share of $0.91, slightly below the consensus estimate of $0.95. The company achieved revenues of $276.19 million for the quarter, surpassing analyst estimates of $273.31 million. This revenue reflects a year-over-year growth of 18.4%, indicating strong operational performance. The net margin for the quarter stood at 7.32%, with a return on equity of 31.53%. Analysts anticipate an average earnings per share of $1.65 for the current fiscal year.
Insider Trading Activity
In related news, CEO Sanjay Mirchandani executed a significant stock sale on November 18, 2023, selling 14,653 shares at an average price of $123.65, amounting to a total transaction value of approximately $1.81 million. Following this sale, Mirchandani retained 372,369 shares of the company, valued at around $46 million, representing a 3.79% decrease in his overall ownership.
Similarly, insider Gary Merrill sold 2,674 shares on the same day for a total of $330,452.92. Post-transaction, Merrill holds 69,163 shares, valued at approximately $8.55 million, reflecting a 3.72% reduction in his ownership stake. Over the last three months, insiders sold a total of 33,111 shares valued at $4.06 million, with insiders collectively holding 1.00% of the company’s stock.
Institutional Investors’ Engagement
Institutional trading activity has also been noteworthy, with several hedge funds and institutional investors adjusting their positions in CommVault. The State of Wyoming acquired a new stake in the company during the second quarter, valued at approximately $35,000. Banque Cantonale Vaudoise followed suit, purchasing a position worth $39,000 in the third quarter.
Cullen Frost Bankers Inc. increased its holdings by 43.8% in the third quarter, now owning 243 shares valued at $46,000. Assetmark Inc. made a remarkable adjustment, boosting its stake by 2,950.0% to own 244 shares worth $46,000. EverSource Wealth Advisors LLC also raised its ownership by 188.3%, currently holding 271 shares valued at $47,000. Institutional investors and hedge funds now hold approximately 93.50% of CommVault’s stock.
CommVault Systems, headquartered in Tinton Falls, New Jersey, specializes in data protection and information management software. Founded in 1996, the company provides integrated products and services that assist enterprises in managing and protecting their data across both on-premises and cloud environments.