CommVault Systems (NASDAQ: CVLT) has attracted renewed interest from analysts, with Stephens initiating coverage and issuing an overweight rating alongside a target price of $162.00. This announcement, made in a research note to investors on October 31, 2023, marks a significant endorsement for the software company, which specializes in data protection and information management solutions.
Several other financial institutions have also weighed in on CommVault’s stock recently. On October 27, 2023, Robert W. Baird upgraded the company to a “strong-buy” rating, setting an ambitious price objective of $215.00. Oppenheimer followed suit on November 10, 2023, granting an “outperform” rating. Meanwhile, KeyCorp adjusted its target price down from $225.00 to $185.00, while maintaining an overweight rating for the stock. Guggenheim reaffirmed its “buy” rating and established a target price of $220.00 on October 16, 2023.
Overall, the consensus rating for CommVault Systems stands at “Moderate Buy,” with a price target averaging $191.92. The company has received two “Strong Buy” ratings, ten “Buy” ratings, and four “Hold” ratings from various analysts, reflecting a generally positive outlook.
Recent Financial Performance
CommVault Systems reported its latest quarterly earnings on October 28, 2023. The company posted earnings per share (EPS) of $0.91, slightly below the consensus estimate of $0.95. Despite this miss, CommVault achieved a revenue of $276.19 million, surpassing analyst expectations of $273.31 million. This represents an impressive year-over-year revenue growth of 18.4%. The company’s net margin stands at 7.32%, with a return on equity of 31.53%.
Analysts project that CommVault Systems will report an EPS of $1.65 for the current year, indicating ongoing growth potential.
Insider Transactions and Institutional Activity
In related news, CEO Sanjay Mirchandani sold 14,653 shares of CommVault stock on November 18, 2023, for approximately $1.81 million at an average price of $123.65. This sale reduced his ownership stake by 3.79%. Following the transaction, he retains 372,369 shares valued at around $46 million.
Additionally, another insider, Gary Merrill, sold 2,674 shares the same day for a total of $330,452.92. This sale also represented a 3.72% reduction in his stake, leaving him with 69,163 shares.
In the last three months, insiders have sold a total of 33,111 shares valued at $4.06 million. Currently, insiders own 1.00% of CommVault’s stock.
Institutional investors continue to play a significant role in CommVault’s stock dynamics. Recently, the State of Wyoming acquired a new position worth approximately $35,000 during the second quarter. Banque Cantonale Vaudoise also initiated a position valued at $39,000 in the third quarter.
Cullen Frost Bankers Inc. increased its stake by 43.8% in the same period, now holding 243 shares worth $46,000. Assetmark Inc. similarly expanded its holdings by 2,950.0% and now owns 244 shares valued at $46,000 as well. Overall, institutional investors and hedge funds collectively own 93.50% of CommVault’s stock.
Founded in 1996 and headquartered in Tinton Falls, New Jersey, CommVault Systems is recognized as a leader in data management solutions. The company offers a range of products designed to help organizations manage, protect, and activate their data across both on-premises and cloud environments. Its flagship products include Commvault Complete Data Protection, Commvault HyperScale, and the SaaS-based Metallic portfolio.
As CommVault Systems continues to navigate the competitive landscape of data management solutions, the recent analyst ratings and insider activities indicate a dynamic environment for investors and stakeholders alike.
