Royal Bank Of Canada Issues Positive Forecast for CommVault Systems (NASDAQ:CVLT) Stock Price

Key Points

• Royal Bank of Canada raised CommVault Systems’ price target from $160 to $180 while maintaining a “sector perform” rating, implying approximately 6.3% upside. Analysts’ consensus is “Moderate Buy,” with an average target of $170.69.
• CommVault exceeded quarterly expectations, reporting $1.38 EPS versus $1.25 forecast and $312.39 million in revenue, up 13.1% year over year.
• Shares traded down 1.9% to $169.34 despite the earnings beat; valuation remains elevated at a P/E ratio above 100, creating a potential risk for investors.

CommVault Systems (NASDAQ:CVLT - Get Free Report) had its target price upped by analysts at Royal Bank Of Canada from $160.00 to $180.00 in a report released on Wednesday, Benzinga reports. The brokerage currently has a "sector perform" rating on the software maker's stock. Royal Bank Of Canada's price objective would suggest a potential upside of 6.30% from the company's current price.

A number of other research analysts also recently weighed in on CVLT. Scotiabank reissued a "sector perform" rating and issued a $180.00 price target on shares of CommVault Systems in a research note on Wednesday. Wells Fargo & Company boosted their target price on CommVault Systems from $155.00 to $185.00 and gave the stock an "overweight" rating in a research report on Wednesday. Oppenheimer increased their price target on shares of CommVault Systems from $150.00 to $175.00 and gave the company an "outperform" rating in a research report on Friday, July 17th. Truist Financial boosted their price objective on shares of CommVault Systems from $155.00 to $182.00 and gave the company a "buy" rating in a report on Tuesday, July 21st. Finally, Cantor Fitzgerald upped their target price on shares of CommVault Systems from $132.00 to $171.00 and gave the company a "neutral" rating in a research note on Monday. One investment analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and ten have given a Hold rating to the stock. According to MarketBeat, CommVault Systems currently has a consensus rating of "Moderate Buy" and an average target price of $170.69.

CommVault Systems Trading Down 1.9%

Shares of CommVault Systems stock traded down $3.21 during midday trading on Wednesday, reaching $169.34. The company had a trading volume of 214,095 shares, compared to its average volume of 857,912. The company has a market capitalization of $7.02 billion, a price-to-earnings ratio of 107.86 and a beta of 0.79. The stock has a fifty day simple moving average of $146.25 and a 200 day simple moving average of $118.53. CommVault Systems has a 1-year low of $71.75 and a 1-year high of $174.25.

CommVault Systems (NASDAQ:CVLT - Get Free Report) last issued its quarterly earnings results on Tuesday, October 27th. The software maker reported $1.38 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.25 by $0.13. The firm had revenue of $312.39 million for the quarter, compared to analyst estimates of $310.41 million. The company's revenue was up 13.1% compared to the same quarter last year. During the same period last year, the company earned $0.91 EPS. Sell-side analysts expect that CommVault Systems will post 2.87 earnings per share for the current year.

Insider Activity

In other CommVault Systems news, CAO Danielle Abrahamsen sold 486 shares of CommVault Systems stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $142.80, for a total transaction of $69,400.80. Following the completion of the transaction, the chief accounting officer directly owned 12,160 shares of the company's stock, valued at $1,736,448. The trade was a 3.84% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Gary Merrill sold 1,293 shares of CommVault Systems stock in a transaction that occurred on Wednesday, August 19th. The stock was sold at an average price of $142.80, for a total value of $184,640.40. Following the sale, the chief financial officer directly owned 69,628 shares of the company's stock, valued at approximately $9,942,878.40. The trade was a 1.82% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders sold 29,348 shares of company stock worth $4,202,441. 0.86% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On CommVault Systems

A number of large investors have recently modified their holdings of the business. BlackRock Inc. bought a new stake in CommVault Systems during the 2nd quarter worth $855,420,000. The Manufacturers Life Insurance Company bought a new position in CommVault Systems during the second quarter worth $65,765,000. American Capital Management Inc. acquired a new position in shares of CommVault Systems during the second quarter worth approximately $62,493,000. Wellington Management Group LLP increased its position in shares of CommVault Systems by 57.1% during the second quarter. Wellington Management Group LLP now owns 402,054 shares of the software maker's stock worth $56,983,000 after acquiring an additional 146,055 shares in the last quarter. Finally, Bank of America Corp DE purchased a new position in shares of CommVault Systems during the second quarter valued at approximately $51,709,000. Institutional investors and hedge funds own 93.50% of the company's stock.

Key Headlines Impacting CommVault Systems

Here are the key news stories impacting CommVault Systems this week:

• Positive Sentiment: Analysts raised price targets: Wells Fargo increased its target from $155 to $185 and assigned an “overweight” rating, while KeyCorp raised its target from $175 to $200 and also maintained an “overweight” rating. The new targets imply approximately 9% to 18% upside from recent levels. Wells Fargo analyst rating KeyCorp analyst rating
• Positive Sentiment: Fiscal Q2 earnings beat expectations: Commvault reported $1.38 in EPS versus the $1.25 consensus estimate, while revenue reached $312.39 million compared with expectations of $310.41 million. EPS rose from $0.91 a year earlier, and revenue increased 13.1% year over year. Commvault fiscal Q2 results
• Positive Sentiment: Recurring revenue trends were particularly strong: Subscription revenue grew 21% to $269 million, subscription ARR increased 20% to $1.104 billion, and the company generated $75 million in operating cash flow and $71 million in free cash flow.
• Positive Sentiment: Product expansion may support future demand: New identity-resilience capabilities cover Active Directory, Entra ID, and Okta, helping customers identify Tier 0 exposure and remediate hidden identity-system risks before attacks occur. Commvault identity resilience announcement
• Neutral Sentiment: Jefferies also indicated that CVLT shares could rise, reinforcing generally constructive analyst sentiment, though the available report provides limited additional detail. Jefferies analyst commentary
• Negative Sentiment: Valuation and muted post-earnings reaction remain risks: CVLT trades at a P/E ratio above 100 after reaching near its 52-week high. The recent pullback suggests investors may be taking profits or demanding stronger forward guidance despite the earnings beat.

CommVault Systems Company Profile

Commvault Systems, Inc develops data protection and cyber resilience software and services for businesses, government organizations and other institutions. Its platform is designed to help customers back up, recover, manage and secure data across on-premises infrastructure, private and public clouds, software-as-a-service applications and other distributed IT environments.

The company's offerings include backup and recovery, disaster recovery, data security, ransomware protection, cyber-recovery capabilities and data management tools.

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