CommVault Systems (NASDAQ: CVLT) has attracted significant attention from analysts, with multiple firms initiating or updating coverage of the software company. On Tuesday, October 27, 2023, Stephens began its coverage, assigning an overweight rating and setting a target price of $162.00 for CommVault’s stock. This marks a notable endorsement for the company, which specializes in data protection and information management software.
Several other brokerage firms have also weighed in on CommVault’s stock recently. Baird R W upgraded the company to a strong-buy rating on the same day, establishing a target price of $215.00. Oppenheimer similarly initiated coverage, issuing an outperform rating. On the other hand, KeyCorp adjusted its target price from $225.00 to $185.00, while maintaining an overweight rating, reflecting varying perspectives on the stock’s potential.
According to MarketBeat, the consensus rating for CommVault Systems is currently Moderate Buy, with a consensus price target of $191.92. This collective analysis underscores the ongoing confidence among analysts regarding the company’s prospects.
Recent Financial Performance and Insider Activity
CommVault Systems released its quarterly earnings results on October 28, 2023, reporting earnings per share of $0.91. This figure fell short of the consensus estimate of $0.95 by $0.04. Despite this slight miss, the company’s revenue for the quarter was $276.19 million, surpassing analyst expectations of $273.31 million. Year-over-year, revenue increased by 18.4%, highlighting a solid growth trajectory.
The company’s net margin stood at 7.32%, with a return on equity of 31.53%, indicating efficient management of shareholder funds. Analysts predict that CommVault will post earnings per share of 1.65 for the current fiscal year, suggesting further potential for growth.
In addition to its financial performance, insider trading activity has drawn attention. CEO Sanjay Mirchandani sold 14,653 shares on November 18, 2023, at an average price of $123.65, amounting to approximately $1.81 million. Following this transaction, Mirchandani holds 372,369 shares, valued at around $46 million. Similarly, insider Gary Merrill sold 2,674 shares on the same day, reducing his stake as well.
Institutional Investor Activity
Recent movements among institutional investors indicate a growing interest in CommVault Systems. The State of Wyoming acquired a new position in the company during the second quarter, with an investment of around $35,000. Other notable transactions include Banque Cantonale Vaudoise’s new position worth $39,000 and Cullen Frost Bankers Inc.’s increase in its stake by 43.8%, owning 243 shares valued at approximately $46,000.
Assetmark Inc. and EverSource Wealth Advisors LLC also increased their holdings significantly, reflecting a broader confidence in CommVault’s future. Currently, institutional investors and hedge funds own 93.50% of the company’s stock, suggesting a strong institutional backing.
CommVault Systems has established itself as a leader in the data management space, offering a range of solutions designed to help organizations manage, protect, and activate data across both on-premises and cloud environments. With a suite of products that includes Commvault Complete Data Protection and the SaaS-based Metallic portfolio, the company is well-positioned to capitalize on the increasing demand for effective data management solutions.
