Analysts at Stephens have begun coverage of CommVault Systems (NASDAQ: CVLT), offering an overweight rating and a target price of $162.00 per share. This announcement was made in a research note distributed to investors on October 28, 2023. The software company, which specializes in data protection and information management, has recently attracted attention from multiple brokerages, indicating a generally positive outlook for its stock.
In addition to Stephens, Robert W. Baird upgraded CommVault Systems to a “strong-buy” rating on the same day, setting a notably higher price objective of $215.00. Oppenheimer also initiated coverage with an “outperform” rating on November 10, 2023. Meanwhile, KeyCorp adjusted its target price from $225.00 to $185.00 while maintaining an overweight rating. Overall, two analysts rate the stock as a strong buy, ten as a buy, and four as hold. According to MarketBeat, CommVault Systems currently holds a consensus rating of “Moderate Buy” with an average price target of $191.92.
CommVault Systems recently announced its quarterly earnings, revealing earnings per share (EPS) of $0.91, falling short of analysts’ expectations of $0.95 by $0.04. The company reported revenue of $276.19 million, which exceeds analysts’ estimates of $273.31 million. This represents an increase of 18.4% year-over-year in revenue, while the net margin stood at 7.32% with a return on equity of 31.53%. Analysts project that CommVault will achieve an EPS of 1.65 for the current fiscal year.
Insider Transactions and Institutional Investment Trends
Recent insider trading activity has also caught attention. CEO Sanjay Mirchandani sold 14,653 shares on November 18, 2023, at an average price of $123.65, generating a total of $1.81 million. Following this transaction, Mirchandani retains 372,369 shares, valued at approximately $46 million, reflecting a 3.79% decrease in his ownership. Insider Gary Merrill also sold 2,674 shares on the same day, with a total value of $330,452.92. In the past three months, insiders have sold a total of 33,111 shares, amounting to $4.06 million. Insiders currently hold 1.00% of the company’s stock.
Institutional investors have shown increasing interest in CommVault Systems. Notably, the State of Wyoming established a new position valued at approximately $35,000 during the second quarter, while Banque Cantonale Vaudoise invested $39,000 in the third quarter. Cullen Frost Bankers Inc. raised its stake by 43.8% during the same period, now owning 243 shares valued at $46,000. Overall, institutional investors and hedge funds own a significant 93.50% of CommVault’s stock.
CommVault Systems, headquartered in Tinton Falls, New Jersey, has established itself as a key player in the data protection software market since its founding in 1996. The company provides comprehensive solutions that help organizations manage, protect, and utilize data across various environments, including on-premises and cloud platforms. Its flagship products, such as Commvault Complete Data Protection and the SaaS-based Metallic portfolio, are designed to streamline data management and improve operational efficiency.
As the market continues to respond to CommVault’s strategic initiatives and performance, analysts and investors alike will be keeping a close watch on the company’s trajectory and subsequent earnings reports.
