CommVault Systems (NASDAQ: CVLT) received a boost in investor confidence as Stephens initiated coverage on the software provider, assigning an “overweight” rating along with a target price of $162.00. This announcement, made on October 28, 2023, is part of a broader trend, as several analysts have recently provided favorable evaluations of the company’s stock.
On the same day, Robert W. Baird upgraded CommVault to a “strong-buy” rating, setting an ambitious price objective of $215.00. Oppenheimer also began coverage that day with an “outperform” rating. Meanwhile, KeyCorp adjusted its target price for the company from $225.00 to $185.00 while maintaining an “overweight” rating. Guggenheim reaffirmed a “buy” rating earlier in the month, specifying a target price of $220.00.
Overall, the stock has garnered a consensus rating of “Moderate Buy,” with two analysts recommending a strong buy, ten advising a buy, and four suggesting a hold. According to MarketBeat, the average price target stands at $191.92.
Recent Earnings Performance
CommVault reported its quarterly earnings on October 28, 2023, revealing earnings per share of $0.91, which fell short of the consensus estimate of $0.95. Despite this miss, the company achieved 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 marks an 18.4% increase in revenue year-over-year, compared to $0.83 earnings per share in the same quarter last year. Analysts anticipate that CommVault will report $1.65 earnings per share for the current year.
Insider Transactions and Institutional Interest
In related news, CEO Sanjay Mirchandani sold 14,653 shares of CommVault stock on November 18, 2023, at an average price of $123.65, amounting to a total of $1,811,843.45. Following this transaction, Mirchandani retains 372,369 shares valued at approximately $46,043,426.85, reflecting 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, totaling $330,452.92. Following this sale, Merrill holds 69,163 shares valued at $8,547,163.54, representing a 3.72% decrease in ownership. In total, insiders have sold 33,111 shares over the past three months, valued at $4,058,851, while insiders collectively hold 1.00% of the company’s shares.
Institutional investors have shown significant interest in CommVault in recent months. Notably, the State of Wyoming acquired a new position in the second quarter valued at approximately $35,000. Banque Cantonale Vaudoise also entered the market in the third quarter with an investment of $39,000. Cullen Frost Bankers Inc. increased its stake by 43.8% during the same period and now holds 243 shares valued at $46,000.
In total, institutional investors and hedge funds own 93.50% of CommVault’s stock, indicating strong institutional support for the company.
CommVault Systems, headquartered in Tinton Falls, New Jersey, specializes in data protection and information management software. Founded in 1996, the company provides integrated solutions for data management across various environments, including on-premises and cloud settings. Its flagship products include Commvault Complete Data Protection and Commvault HyperScale, designed to streamline operations and enhance data resiliency for enterprises.
