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

Key Points

• CommVault Systems was downgraded from a "strong-buy" to a "buy" rating by Wall Street Zen, reflecting a shift in market sentiment.
• Multiple analysts have raised their price targets for the stock, with a consensus target price now set at $205.63 and a "Moderate Buy" rating among various analysts.
• In its latest quarterly earnings, CommVault reported a 26% increase in revenue, surpassing expectations with earnings of $1.01 per share against a projected $0.97.

CommVault Systems (NASDAQ:CVLT - Get Free Report) was downgraded by analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research note issued on Sunday.

Several other brokerages have also recently commented on CVLT. Royal Bank Of Canada upped their target price on shares of CommVault Systems from $185.00 to $217.00 and gave the company a "sector perform" rating in a research report on Wednesday, July 30th. Piper Sandler upped their target price on shares of CommVault Systems from $168.00 to $170.00 and gave the company a "neutral" rating in a research report on Monday, July 14th. KeyCorp upped their price objective on shares of CommVault Systems from $195.00 to $225.00 and gave the company an "overweight" rating in a research report on Wednesday, July 30th. Wells Fargo & Company lifted their target price on CommVault Systems from $190.00 to $220.00 and gave the stock an "overweight" rating in a report on Wednesday, July 30th. Finally, DA Davidson boosted their target price on CommVault Systems from $200.00 to $220.00 and gave the company a "buy" rating in a research note on Wednesday, July 30th. Six equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, CommVault Systems has an average rating of "Moderate Buy" and a consensus target price of $205.63.

CommVault Systems Stock Performance

NASDAQ CVLT traded up $0.15 during trading on Friday, reaching $193.87. 123,718 shares of the company traded hands, compared to its average volume of 529,076. The company has a market cap of $8.62 billion, a price-to-earnings ratio of 107.87 and a beta of 0.74. CommVault Systems has a 1-year low of $128.07 and a 1-year high of $200.68. The stock's 50 day moving average price is $180.96 and its two-hundred day moving average price is $172.84.

CommVault Systems (NASDAQ:CVLT - Get Free Report) last posted its quarterly earnings data on Tuesday, July 29th. The software maker reported $1.01 earnings per share for the quarter, topping the consensus estimate of $0.97 by $0.04. CommVault Systems had a net margin of 7.70% and a return on equity of 30.83%. The firm had revenue of $281.98 million during the quarter, compared to analysts' expectations of $267.83 million. The company's revenue for the quarter was up 26% compared to the same quarter last year. CommVault Systems has set its FY 2026 guidance at EPS. Q2 2026 guidance at EPS. Equities research analysts expect that CommVault Systems will post 1.65 EPS for the current fiscal year.

Insider Transactions at CommVault Systems

In other CommVault Systems news, CEO Sanjay Mirchandani sold 11,320 shares of the stock in a transaction dated Monday, August 18th. The stock was sold at an average price of $177.83, for a total transaction of $2,013,035.60. Following the completion of the transaction, the chief executive officer owned 458,361 shares in the company, valued at approximately $81,510,336.63. This represents a 2.41% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Jennifer Leigh Dirico sold 14,909 shares of the stock in a transaction dated Tuesday, September 9th. The stock was sold at an average price of $182.22, for a total value of $2,716,717.98. Following the transaction, the chief financial officer owned 45,143 shares of the company's stock, valued at approximately $8,225,957.46. This trade represents a 24.83% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 55,942 shares of company stock worth $10,019,157 in the last 90 days. Company insiders own 1.00% of the company's stock.

Hedge Funds Weigh In On CommVault Systems

A number of large investors have recently modified their holdings of the business. Orion Porfolio Solutions LLC acquired a new position in shares of CommVault Systems during the 2nd quarter worth about $229,000. B. Riley Wealth Advisors Inc. acquired a new position in shares of CommVault Systems during the 2nd quarter worth about $632,000. State of Wyoming acquired a new position in shares of CommVault Systems during the 2nd quarter worth about $35,000. Caxton Associates LLP boosted its stake in shares of CommVault Systems by 24.5% during the 2nd quarter. Caxton Associates LLP now owns 10,146 shares of the software maker's stock worth $1,769,000 after buying an additional 1,995 shares during the last quarter. Finally, CANADA LIFE ASSURANCE Co boosted its stake in shares of CommVault Systems by 1.1% during the 2nd quarter. CANADA LIFE ASSURANCE Co now owns 103,655 shares of the software maker's stock worth $18,053,000 after buying an additional 1,109 shares during the last quarter. 93.50% of the stock is currently owned by institutional investors and hedge funds.

About CommVault Systems

Commvault Systems, Inc provides data protection platform that helps customers to secure, defend, and recover their data in the United States and internationally. The company offers Commvault Backup and Recovery, a backup and recovery solution; Commvault Disaster Recovery, a replication and disaster recovery solution; Commvault Complete Data Protection, a data protection solution; and Metallic Data Protection as-a-service, which delivers enterprise-grade data protection as a service on a cloud platform, with advanced built-in security controls.