CommVault Systems (NASDAQ:CVLT) Shares Down 4.8% - Here's Why

Key Points

• Shares fell ~4.8% to about $89.44 on Monday (intraday low $89.04) on sharply reduced trading—~125,882 shares exchanged hands, down about 88% from the ~1.09M average daily volume.
• Quarterly results beat expectations: CommVault reported $1.17 EPS vs. $0.98 expected and $313.8M revenue (up 19.5% YoY); the company has a market cap of $3.91B and a P/E of ~45.9.
• Analyst and insider activity: Analysts rate the stock a "Moderate Buy" with an average target of $132.87 despite some recent price-target cuts, while insiders sold ~31,355 shares in the past 90 days (insiders own ~1% of shares).

CommVault Systems, Inc. (NASDAQ:CVLT - Get Free Report)'s stock price dropped 4.8% on Monday . The company traded as low as $89.04 and last traded at $89.4370. Approximately 125,882 shares traded hands during trading, a decline of 88% from the average daily volume of 1,093,765 shares. The stock had previously closed at $93.92.

Analyst Upgrades and Downgrades

CVLT has been the subject of a number of recent analyst reports. Zacks Research raised shares of CommVault Systems from a "hold" rating to a "strong-buy" rating in a research report on Friday, January 30th. KeyCorp decreased their target price on shares of CommVault Systems from $152.00 to $108.00 and set an "overweight" rating for the company in a research report on Wednesday, January 28th. Wells Fargo & Company decreased their target price on shares of CommVault Systems from $190.00 to $155.00 and set an "overweight" rating for the company in a research report on Wednesday, January 28th. Scotiabank initiated coverage on shares of CommVault Systems in a research report on Tuesday, April 21st. They set a "sector perform" rating and a $105.00 target price for the company. Finally, Loop Capital initiated 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. Two equities research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and six have given a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $132.87.

CommVault Systems Trading Down 5.2%

The company has a market cap of $3.91 billion, a price-to-earnings ratio of 45.92 and a beta of 0.63. The company has a current ratio of 2.34, a quick ratio of 2.34 and a debt-to-equity ratio of 4.06. The firm's 50-day moving average price is $85.03 and its 200 day moving average price is $111.82.

CommVault Systems (NASDAQ:CVLT - Get Free Report) last announced its quarterly earnings data on Tuesday, January 27th. The software maker reported $1.17 EPS for the quarter, topping the consensus estimate of $0.98 by $0.19. The company had revenue of $313.83 million during the quarter, compared to the consensus estimate of $299.07 million. CommVault Systems had a net margin of 7.58% and a return on equity of 37.38%. The company's quarterly revenue was up 19.5% on a year-over-year basis. During the same quarter last year, the firm posted $0.94 EPS. As a group, equities analysts expect that CommVault Systems, Inc. will post 2.15 EPS for the current year.

Insider Activity at CommVault Systems

In other news, insider Gary Merrill sold 1,892 shares of the firm's stock in a transaction that occurred on Thursday, February 19th. The shares were sold at an average price of $91.28, for a total transaction of $172,701.76. Following the completion of the sale, the insider owned 62,833 shares of the company's stock, valued at $5,735,396.24. This trade represents a 2.92% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. Also, CEO Sanjay Mirchandani sold 10,052 shares of the firm's stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $80.09, for a total transaction of $805,064.68. Following the sale, the chief executive officer directly owned 332,529 shares of the company's stock, valued at approximately $26,632,247.61. This trade represents a 2.93% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 31,355 shares of company stock valued at $2,613,165. Insiders own 1.00% of the company's stock.

Institutional Trading of CommVault Systems

Large investors have recently modified their holdings of the stock. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in CommVault Systems by 8.6% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 147,410 shares of the software maker's stock valued at $23,255,000 after purchasing an additional 11,700 shares during the period. Sivia Capital Partners LLC acquired a new stake in CommVault Systems in the 2nd quarter valued at $327,000. Cetera Investment Advisers grew its position in CommVault Systems by 13.4% in the 2nd quarter. Cetera Investment Advisers now owns 2,486 shares of the software maker's stock valued at $433,000 after purchasing an additional 294 shares during the period. EverSource Wealth Advisors LLC grew its position in CommVault Systems by 188.3% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 271 shares of the software maker's stock valued at $47,000 after purchasing an additional 177 shares during the period. Finally, Guggenheim Capital LLC grew its position in CommVault Systems by 43.8% in the 2nd quarter. Guggenheim Capital LLC now owns 4,245 shares of the software maker's stock valued at $740,000 after purchasing an additional 1,293 shares during the period. Institutional investors and hedge funds own 93.50% of the company's stock.

CommVault Systems Company Profile

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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