CommVault Systems (NASDAQ:CVLT) Shares Gap Up on Better-Than-Expected Earnings

Key Points

• Earnings beat and stock jump: CommVault reported EPS of $1.28 vs. $1.11 expected and revenue of $311.69M (up 13.3% YoY), and the shares gapped up — opening at $98 from $88.41 and trading around $97.42 (roughly an 11% gain).
• Analyst landscape: Analyst opinions are mixed but generally positive — 2 Strong Buy, 10 Buy and 6 Hold ratings, with an average rating of "Moderate Buy" and an average target price of $132.87 despite some recent target cuts.
• Insider selling: CEO Sanjay Mirchandani sold 10,052 shares at about $80.09, and insiders sold 31,355 shares (~$2.61M) over the past three months; insiders now own roughly 1% of the stock.

Shares of CommVault Systems, Inc. (NASDAQ:CVLT - Get Free Report) gapped up prior to trading on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $88.41, but opened at $98.00. CommVault Systems shares last traded at $97.42, with a volume of 191,365 shares trading hands.

The software maker reported $1.28 earnings per share for the quarter, topping analysts' consensus estimates of $1.11 by $0.17. CommVault Systems had a net margin of 7.58% and a return on equity of 37.38%. The firm had revenue of $311.69 million during the quarter, compared to analyst estimates of $306.75 million. During the same quarter in the prior year, the business earned $1.03 earnings per share. CommVault Systems's revenue for the quarter was up 13.3% on a year-over-year basis.

Analyst Ratings Changes

CVLT has been the topic of a number of recent research reports. Wall Street Zen downgraded shares of CommVault Systems from a "buy" rating to a "hold" rating in a research note on Saturday, March 28th. Robert W. Baird decreased their price target 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. DA Davidson reaffirmed a "buy" rating and set a $125.00 price target on shares of CommVault Systems in a research note on Monday, April 13th. Stephens decreased their price target on shares of CommVault Systems from $162.00 to $135.00 and set an "overweight" rating on the stock in a research note on Wednesday, January 28th. Finally, Zacks Research raised shares of CommVault Systems from a "hold" rating to a "strong-buy" rating in a research note on Friday, January 30th. Two investment analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $132.87.

Insider Buying and Selling at CommVault Systems

In other news, CEO Sanjay Mirchandani sold 10,052 shares of the stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $80.09, for a total value of $805,064.68. Following the sale, the chief executive officer owned 332,529 shares of the company's stock, valued at approximately $26,632,247.61. This represents a 2.93% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Gary Merrill sold 1,892 shares of the stock in a transaction 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 directly owned 62,833 shares in the company, valued at approximately $5,735,396.24. This represents a 2.92% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders sold 31,355 shares of company stock worth $2,613,165. Insiders own 1.00% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in CVLT. State of Wyoming bought a new position in shares of CommVault Systems in the second quarter worth about $35,000. FNY Investment Advisers LLC bought a new position in shares of CommVault Systems in the fourth quarter worth about $36,000. Banque Cantonale Vaudoise bought a new position in shares of CommVault Systems in the third quarter worth about $39,000. Assetmark Inc. grew its holdings 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 purchasing an additional 82 shares during the last quarter. Finally, Cullen Frost Bankers Inc. grew its holdings 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 purchasing an additional 74 shares during the last quarter. 93.50% of the stock is currently owned by institutional investors.

CommVault Systems Trading Up 11.0%

The stock's fifty day moving average price is $85.04 and its 200 day moving average price is $111.20. The company has a debt-to-equity ratio of 4.06, a current ratio of 2.34 and a quick ratio of 2.34. The stock has a market capitalization of $4.32 billion, a P/E ratio of 50.47 and a beta of 0.63.

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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