CommVault Systems (NASDAQ:CVLT) Shares Cross Below Fifty Day Moving Average - Here's Why

Key Points

• CommVault shares fell below their 50-day moving average of $153.56, dipping to $148.63 before last trading at $152.07; the article reports the stock was down 8.5%.
• The company beat quarterly expectations, reporting EPS of $1.38 versus $1.25 forecast and revenue of $312.39 million versus $310.41 million. Revenue increased 13.1% year over year.
• Analyst sentiment remained favorable: the consensus rating was Moderate Buy, with a $174.94 average price target. Several analysts recently raised their targets to $200–$210.

CommVault Systems, Inc. (NASDAQ:CVLT - Get Free Report) shares crossed below its 50-day moving average during trading on Friday. The stock has a 50-day moving average of $153.56 and traded as low as $148.63. CommVault Systems shares last traded at $152.07, with a volume of 989,396 shares.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on CVLT shares. Guggenheim increased their price objective on shares of CommVault Systems from $175.00 to $200.00 and gave the stock a "buy" rating in a research note on Wednesday, October 28th. DA Davidson boosted their target price on shares of CommVault Systems from $185.00 to $210.00 and gave the company a "buy" rating in a research report on Wednesday, October 28th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of CommVault Systems in a report on Friday, September 11th. FBN Securities initiated coverage on shares of CommVault Systems in a report on Thursday, September 10th. They set an "outperform" rating and a $155.00 price target for the company. Finally, KeyCorp increased their price target on shares of CommVault Systems from $175.00 to $200.00 and gave the stock an "overweight" rating in a research report on Wednesday, October 28th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and nine have assigned a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $174.94.

CommVault Systems Trading Down 8.5%

The business's 50 day moving average price is $153.56 and its two-hundred day moving average price is $121.26. The company has a current ratio of 1.94, a quick ratio of 1.94 and a debt-to-equity ratio of 70.45. The company has a market capitalization of $6.22 billion, a price-to-earnings ratio of 78.79 and a beta of 0.90.

CommVault Systems (NASDAQ:CVLT - Get Free Report) last announced its quarterly earnings results on Tuesday, October 27th. The software maker reported $1.38 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.25 by $0.13. The company had revenue of $312.39 million for the quarter, compared to analyst estimates of $310.41 million. CommVault Systems had a net margin of 6.60% and a return on equity of 169.40%. The firm's revenue was up 13.1% on a year-over-year basis. During the same period in the previous year, the firm posted $0.91 EPS. On average, equities analysts predict that CommVault Systems, Inc. will post 2.98 earnings per share for the current fiscal year.

Insider Buying and Selling at CommVault Systems

In other CommVault Systems news, CEO Sanjay Mirchandani sold 6,857 shares of the business's stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $142.80, for a total transaction of $979,179.60. Following the sale, the chief executive officer owned 257,676 shares of the company's stock, valued at approximately $36,796,132.80. The trade was a 2.59% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. 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 1,293 shares of the company's stock in a transaction on Wednesday, August 19th. The stock was sold at an average price of $142.80, for a total transaction of $184,640.40. Following the transaction, the chief financial officer owned 69,628 shares of the company's stock, valued at $9,942,878.40. This trade represents a 1.82% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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 have sold 28,277 shares of company stock worth $4,058,723 over the last quarter. Corporate insiders own 0.86% of the company's stock.

Hedge Funds Weigh In On CommVault Systems

A number of institutional investors and hedge funds have recently bought and sold shares of the company. BlackRock Inc. bought a new position in CommVault Systems in the second quarter valued at about $855,420,000. First Trust Advisors LP grew its holdings in shares of CommVault Systems by 11.3% during the third quarter. First Trust Advisors LP now owns 1,215,053 shares of the software maker's stock worth $182,161,000 after purchasing an additional 123,348 shares during the last quarter. Boston Trust Walden Corp grew its holdings in shares of CommVault Systems by 114.1% during the third quarter. Boston Trust Walden Corp now owns 561,288 shares of the software maker's stock worth $84,148,000 after purchasing an additional 299,141 shares during the last quarter. The Manufacturers Life Insurance Company bought a new stake in shares of CommVault Systems during the second quarter worth about $65,765,000. Finally, American Capital Management Inc. acquired a new position in shares of CommVault Systems in the second quarter valued at approximately $62,493,000. Institutional investors and hedge funds own 93.50% of the company's stock.

About CommVault Systems

Commvault Systems, which operates as Commvault, develops data protection and cyber resilience software for businesses and other organizations. Its offerings help customers back up, recover, manage and secure data across on-premises systems, public clouds and hybrid environments. The company's Commvault Cloud platform and related services support data recovery, cyberattack readiness and data management. Its tools are designed to help organizations protect information across different workloads and storage environments.

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