CommVault Systems (NASDAQ:CVLT) Cut to Hold at Wall Street Zen

Key Points

• Wall Street Zen downgraded CommVault Systems from “buy” to “hold,” though the broader analyst view remains constructive with a consensus rating of “Moderate Buy” and an average price target of $135.
• The company reported strong quarterly results, posting EPS of $1.28 versus expectations of $1.09 and revenue of $311.69 million, up 13.3% year over year.
• Recent insider selling and institutional activity were highlighted, including CEO Sanjay Mirchandani and insider Gary Merrill trimming shares, while hedge funds and other institutions still own 93.5% of the stock.

CommVault Systems (NASDAQ:CVLT - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued to clients and investors on Saturday.

Several other research analysts have also recently issued reports on the company. Stephens dropped their target price on CommVault Systems from $162.00 to $135.00 and set an "overweight" rating on the stock in a research report on Wednesday, January 28th. DA Davidson reaffirmed a "buy" rating and set a $125.00 price target on shares of CommVault Systems in a research report on Monday, April 13th. Robert W. Baird lowered their price objective on shares of CommVault Systems from $185.00 to $160.00 and set an "outperform" rating on the stock in a research note on Monday, April 13th. Guggenheim dropped their price objective on shares of CommVault Systems from $200.00 to $175.00 and set a "buy" rating on the stock in a report on Wednesday, January 28th. Finally, Loop Capital started coverage on shares of CommVault Systems in a research report on Tuesday, March 24th. They set a "buy" rating and a $125.00 target price for the company. One investment analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and eight have issued a Hold rating to the company's stock. According to data from MarketBeat, CommVault Systems has a consensus rating of "Moderate Buy" and a consensus price target of $135.00.

CommVault Systems Price Performance

Shares of CVLT opened at $103.90 on Friday. The firm has a fifty day simple moving average of $88.36 and a two-hundred day simple moving average of $105.72. The firm has a market cap of $4.29 billion, a PE ratio of 65.35 and a beta of 0.77. The company has a current ratio of 1.95, a quick ratio of 2.34 and a debt-to-equity ratio of 117.54. CommVault Systems has a 1-year low of $71.75 and a 1-year high of $200.68.

CommVault Systems (NASDAQ:CVLT - Get Free Report) last released its quarterly earnings results on Tuesday, April 28th. The software maker reported $1.28 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.09 by $0.19. CommVault Systems had a return on equity of 51.64% and a net margin of 5.97%.The firm had revenue of $311.69 million for the quarter, compared to the consensus estimate of $306.71 million. During the same period last year, the business posted $1.03 EPS. The company's revenue for the quarter was up 13.3% on a year-over-year basis. On average, equities analysts anticipate that CommVault Systems will post 2.86 EPS for the current year.

Insider Buying and Selling

In other CommVault Systems news, CEO Sanjay Mirchandani sold 10,338 shares of CommVault Systems stock in a transaction that occurred on Monday, March 16th. The shares were sold at an average price of $78.96, for a total transaction of $816,288.48. Following the transaction, the chief executive officer owned 342,581 shares of the company's stock, valued at $27,050,195.76. The trade was a 2.93% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Gary Merrill sold 2,593 shares of the company's stock in a transaction that occurred on Wednesday, February 18th. The stock was sold at an average price of $90.28, for a total transaction of $234,096.04. Following the completion of the transaction, the insider owned 64,725 shares of the company's stock, valued at approximately $5,843,373. The trade was a 3.85% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 31,355 shares of company stock valued at $2,613,165. 1.00% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of CVLT. State of Wyoming purchased a new stake in CommVault Systems in the 2nd quarter worth $35,000. FNY Investment Advisers LLC purchased a new position in shares of CommVault Systems in the fourth quarter valued at about $36,000. Banque Cantonale Vaudoise purchased a new position in shares of CommVault Systems in the third quarter valued at about $39,000. Assetmark Inc. boosted its stake in shares of CommVault Systems by 33.6% in the fourth quarter. Assetmark Inc. now owns 326 shares of the software maker's stock worth $41,000 after acquiring an additional 82 shares during the period. Finally, Cullen Frost Bankers Inc. boosted its stake in shares of CommVault Systems by 43.8% in the third quarter. Cullen Frost Bankers Inc. now owns 243 shares of the software maker's stock worth $46,000 after acquiring an additional 74 shares during the period. Hedge funds and other institutional investors own 93.50% of the company's stock.

About CommVault Systems

Commvault Systems, Inc is a global provider of data protection and information management software designed to help organizations manage, protect, and activate data across on-premises and cloud environments. Founded in 1996 and headquartered in Tinton Falls, New Jersey, Commvault offers a suite of integrated products and services that enable enterprises to back up, recover, archive, and analyze data. Its flagship solutions include Commvault Complete Data Protection, Commvault HyperScale, and the SaaS-based Metallic portfolio, which deliver scalable and automated data management capabilities across hybrid infrastructure environments.

Commvault's platform is built on a unified architecture that allows customers to streamline operations, reduce complexity, and ensure data resiliency.

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