CommVault Systems (NASDAQ:CVLT) Trading 6% Higher - Still a Buy?

Key Points

• CommVault Systems stock surged by 6%, reaching a last trading price of $186.54, with a notable decrease in trading volume reported.
• Equity analysts have increased their price targets for CommVault, with ratings now ranging from "sector perform" to "strong-buy," indicating positive sentiment surrounding the company.
• CommVault reported strong quarterly earnings with earnings per share of $1.01, above the analyst consensus, and a revenue growth of 26% compared to last year.

CommVault Systems, Inc. (NASDAQ:CVLT - Get Free Report)'s stock price traded up 6% on Monday . The company traded as high as $185.48 and last traded at $186.54. 85,854 shares traded hands during mid-day trading, a decline of 83% from the average session volume of 508,622 shares. The stock had previously closed at $175.96.

Analyst Ratings Changes

A number of equities analysts recently weighed in on the company. Royal Bank Of Canada increased their price target on CommVault Systems from $185.00 to $217.00 and gave the company a "sector perform" rating in a research report on Wednesday, July 30th. KeyCorp increased their price target on CommVault Systems from $195.00 to $225.00 and gave the company an "overweight" rating in a research report on Wednesday, July 30th. Piper Sandler increased their price target on CommVault Systems from $168.00 to $170.00 and gave the company a "neutral" rating in a research report on Monday, July 14th. DA Davidson increased their price target on CommVault Systems from $200.00 to $220.00 and gave the company a "buy" rating in a research report on Wednesday, July 30th. Finally, Wall Street Zen upgraded CommVault Systems from a "buy" rating to a "strong-buy" rating in a research report on Saturday. Six analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $205.63.

CommVault Systems Stock Performance

The stock has a 50 day moving average price of $178.45 and a two-hundred day moving average price of $171.64. The company has a market capitalization of $8.43 billion, a PE ratio of 105.30 and a beta of 0.74.

CommVault Systems (NASDAQ:CVLT - Get Free Report) last posted its quarterly earnings results on Tuesday, July 29th. The software maker reported $1.01 earnings per share for the quarter, topping analysts' consensus estimates of $0.97 by $0.04. CommVault Systems had a return on equity of 30.83% and a net margin of 7.70%.The company had revenue of $281.98 million during the quarter, compared to the consensus estimate of $267.83 million. CommVault Systems'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. Sell-side analysts predict that CommVault Systems, Inc. will post 1.65 earnings per share for the current year.

Insider Buying and Selling

In related news, insider Gary Merrill sold 2,628 shares of the firm's stock in a transaction that occurred on Monday, August 18th. The stock was sold at an average price of $178.03, for a total value of $467,862.84. Following the transaction, the insider directly owned 87,081 shares of the company's stock, valued at approximately $15,503,030.43. This trade represents a 2.93% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Sanjay Mirchandani sold 11,320 shares of the firm's stock in a transaction that occurred on Monday, August 18th. The shares were sold at an average price of $177.83, for a total value of $2,013,035.60. Following the completion of the transaction, the chief executive officer directly owned 458,361 shares in the company, valued at $81,510,336.63. The trade was a 2.41% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 40,698 shares of company stock valued at $7,305,573 over the last 90 days. 1.00% of the stock is currently owned by insiders.

Institutional Trading of CommVault Systems

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Orion Porfolio Solutions LLC acquired a new stake in CommVault Systems in the 2nd quarter valued at approximately $229,000. B. Riley Wealth Advisors Inc. acquired a new stake in CommVault Systems in the 2nd quarter valued at approximately $632,000. State of Wyoming acquired a new stake in CommVault Systems in the 2nd quarter valued at approximately $35,000. Caxton Associates LLP grew its holdings in CommVault Systems by 24.5% in the 2nd quarter. Caxton Associates LLP now owns 10,146 shares of the software maker's stock valued at $1,769,000 after buying an additional 1,995 shares during the last quarter. Finally, CANADA LIFE ASSURANCE Co grew its holdings in CommVault Systems by 1.1% in the 2nd quarter. CANADA LIFE ASSURANCE Co now owns 103,655 shares of the software maker's stock valued at $18,053,000 after buying an additional 1,109 shares during the last quarter. Institutional investors and hedge funds own 93.50% of the company's stock.

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.

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