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

Key Points

• Wall Street Zen upgraded CommVault Systems to “Buy” from “Hold.” The broader analyst consensus is “Moderate Buy,” with an average price target of $152.47.
• CommVault reported quarterly adjusted earnings of $1.42 per share, beating estimates of $1.16, while revenue reached $314.13 million and rose 11.4% year over year.
• Shares opened at $117.80, with the stock trading at a high valuation of about 75 times earnings. Insiders sold $5.79 million worth of shares over the past 90 days, primarily through pre-arranged plans to cover tax obligations.

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

Several other brokerages have also issued reports on CVLT. Weiss Ratings upgraded shares of CommVault Systems from a "hold (c-)" rating to a "hold (c)" rating in a research report on Tuesday, June 16th. Wolfe Research started coverage on shares of CommVault Systems in a research report on Friday, May 1st. They set a "peer perform" rating for the company. Mizuho raised their price target on shares of CommVault Systems from $140.00 to $175.00 and gave the company an "outperform" rating in a research note on Wednesday, July 15th. Guggenheim reiterated a "buy" rating on shares of CommVault Systems in a report on Tuesday. Finally, DA Davidson set a $175.00 price objective on CommVault Systems in a research note on Wednesday. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and ten have assigned a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $152.47.

CommVault Systems Price Performance

Shares of CommVault Systems stock opened at $117.80 on Friday. The company has a quick ratio of 1.95, a current ratio of 2.04 and a debt-to-equity ratio of 16.94. CommVault Systems has a twelve month low of $71.75 and a twelve month high of $198.18. The business has a 50-day moving average price of $132.89 and a 200 day moving average price of $107.00. The firm has a market cap of $4.88 billion, a PE ratio of 75.03 and a beta of 0.79.

CommVault Systems (NASDAQ:CVLT - Get Free Report) last issued its quarterly earnings data on Tuesday, July 28th. The software maker reported $1.42 EPS for the quarter, beating the consensus estimate of $1.16 by $0.26. The company had revenue of $314.13 million for the quarter, compared to analyst estimates of $310.43 million. CommVault Systems had a return on equity of 88.75% and a net margin of 5.62%.CommVault Systems's quarterly revenue was up 11.4% compared to the same quarter last year. During the same period last year, the company earned $1.01 earnings per share. Sell-side analysts predict that CommVault Systems will post 2.85 earnings per share for the current fiscal year.

Insider Activity

In related news, CEO Sanjay Mirchandani sold 8,450 shares of CommVault Systems stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $99.13, for a total transaction of $837,648.50. Following the transaction, the chief executive officer owned 306,927 shares in the company, valued at approximately $30,425,673.51. This trade represents a 2.68% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Gary Merrill sold 4,554 shares of the business's stock in a transaction on Tuesday, May 26th. The stock was sold at an average price of $106.70, for a total value of $485,911.80. Following the transaction, the chief financial officer directly owned 72,775 shares in the company, valued at $7,765,092.50. This trade represents a 5.89% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 55,279 shares of company stock worth $5,786,557 over the last ninety days. Corporate insiders own 0.86% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. State of Wyoming acquired a new position in shares of CommVault Systems during the 2nd quarter valued at about $35,000. Banque Cantonale Vaudoise acquired a new stake in CommVault Systems during the third quarter worth about $39,000. Advisory Services Network LLC purchased a new position in CommVault Systems during the third quarter worth about $47,000. EverSource Wealth Advisors LLC raised its stake in CommVault Systems by 188.3% during the second quarter. EverSource Wealth Advisors LLC now owns 271 shares of the software maker's stock worth $47,000 after purchasing an additional 177 shares during the period. Finally, FNY Investment Advisers LLC acquired a new position in CommVault Systems in the 4th quarter valued at about $36,000. 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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