CommVault Systems Receives New Ratings and Price Targets from Analysts

CommVault Systems (NASDAQ: CVLT) has gained attention from investment analysts, with several brokerage firms initiating or updating their coverage of the company. On Tuesday, October 31, 2023, Stephens issued an overweight rating and set a target price of $162.00 for CommVault’s stock, which focuses on data protection and information management software.

This announcement follows multiple updates from other analysts. On October 27, 2023, Robert W. Baird upgraded CommVault Systems to a “strong-buy” rating and established a price objective of $215.00. Oppenheimer also began coverage on the same day, granting an “outperform” rating. KeyCorp reduced its target price from $225.00 to $185.00, while still maintaining an overweight rating. Additionally, Guggenheim reaffirmed its “buy” rating with a price target of $220.00 as of October 16, 2023.

Overall, analysts provide a consensus rating of “Moderate Buy” for CommVault Systems, with an average price target of $191.92. The company has received varying ratings, with two analysts recommending a strong buy, ten a buy, and four assigning a hold rating.

CommVault’s Recent Financial Performance

CommVault Systems reported its quarterly earnings on October 28, 2023, revealing earnings per share (EPS) of $0.91. This figure fell short of the consensus estimate of $0.95 by $0.04. The company recorded a net margin of 7.32% and a return on equity of 31.53%. Revenue for the quarter reached $276.19 million, surpassing analyst expectations of $273.31 million. This represents an 18.4% increase in revenue compared to the same quarter last year, where the company posted $0.83 EPS.

Equities analysts forecast that CommVault Systems will achieve an EPS of $1.65 for the current fiscal year.

Insider Trading Activities

In related news, CEO Sanjay Mirchandani sold 14,653 shares of CommVault stock on November 18, 2023, at an average price of $123.65, generating a total of approximately $1.81 million. Following this transaction, Mirchandani holds 372,369 shares, valued at around $46.04 million, marking a 3.79% decrease in his ownership.

Another insider, Gary Merrill, sold 2,674 shares on the same day at an average price of $123.58, amounting to roughly $330,453. After this sale, Merrill owns 69,163 shares, valued at $8.55 million, representing a 3.72% decrease in holdings. Overall, insiders have sold 33,111 shares valued at approximately $4.06 million in the last three months, with company insiders owning 1.00% of the stock.

Institutional Investor Activity

CommVault Systems has seen significant activity among institutional investors and hedge funds. The State of Wyoming acquired a position worth about $35,000 in the second quarter, while Banque Cantonale Vaudoise invested $39,000 in the third quarter. Cullen Frost Bankers Inc. increased its holdings by 43.8% during the same period, now owning 243 shares valued at approximately $46,000.

Assetmark Inc. has significantly lifted its holdings by 2,950.0% in the third quarter, owning 244 shares valued at $46,000 after acquiring an additional 236 shares. EverSource Wealth Advisors LLC also increased its shares by 188.3%, owning 271 shares valued at $47,000 after purchasing an additional 177 shares. Currently, institutional investors and hedge funds hold approximately 93.50% of CommVault Systems’ stock.

CommVault Systems, founded in 1996 and headquartered in Tinton Falls, New Jersey, specializes in data protection and information management software, providing solutions that help organizations manage, protect, and activate data across both on-premises and cloud environments. Its product suite includes Commvault Complete Data Protection, Commvault HyperScale, and the SaaS-based Metallic portfolio, ensuring streamlined operations and data resiliency for enterprises.