CommVault Systems (NASDAQ: CVLT) has received renewed attention from analysts, with Stephens initiating coverage and issuing an overweight rating along with a target price of $162.00. This comes amid a flurry of positive assessments from various investment firms, highlighting the company’s potential in the data protection and information management sector.
In a research note released on October 27, 2023, Robert W. Baird upgraded CommVault to a “strong-buy” rating, setting a price objective of $215.00. Oppenheimer followed suit on November 10, 2023, also assigning an “outperform” rating to the stock. Meanwhile, KeyCorp adjusted its target price from $225.00 to $185.00 while maintaining an overweight rating.
A consensus analysis from MarketBeat indicates that CommVault Systems has a “Moderate Buy” rating, with two analysts rating the stock as a strong buy, ten as a buy, and four holding their ratings. The average price target across the board stands at $191.92.
CommVault Systems’ recent financial performance provides context to this optimism. The company 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 by $0.04. Despite this, the company’s revenue reached $276.19 million, surpassing analyst expectations of $273.31 million. This marks an 18.4% increase in revenue year-over-year, showing strong growth despite the slight earnings miss.
Insider Trading and Institutional Activity
In other developments, CEO Sanjay Mirchandani executed a significant stock sale on November 18, 2023, offloading 14,653 shares at an average price of $123.65, totaling around $1.8 million. Following the sale, Mirchandani retained 372,369 shares of the company, valued at approximately $46 million, which represents a 3.79% decrease in his ownership stake.
Additionally, insider Gary Merrill sold 2,674 shares on the same day for approximately $330,453, reducing his ownership by 3.72%. In total, insiders sold 33,111 shares, valued at around $4.1 million in the last three months, with insiders currently holding 1.00% of the company’s stock.
Institutional investors have also shown interest in CommVault. Notably, the State of Wyoming acquired a new position in the second quarter, amounting to about $35,000. Banque Cantonale Vaudoise followed by investing $39,000 during the third quarter. Cullen Frost Bankers Inc. increased its stake by 43.8% and EverSource Wealth Advisors LLC raised its holdings by 188.3% in the same period.
Overall, institutional investors and hedge funds now hold 93.50% of CommVault Systems, reflecting strong institutional confidence in the company’s future.
Company Overview
CommVault Systems, founded in 1996 and headquartered in Tinton Falls, New Jersey, specializes in data protection and information management software. The company’s offerings help organizations manage, protect, and activate their data across both on-premises and cloud environments. Its flagship products, including CommVault Complete Data Protection and the SaaS-based Metallic portfolio, facilitate scalable and automated data management.
The positive analyst ratings and institutional investments indicate a strong outlook for CommVault Systems as it continues to navigate the evolving landscape of data management solutions.
