CommVault Systems (NASDAQ:CVLT) Shares Gap Down – Should You Sell?

Shares of CommVault Systems, Inc. (NASDAQ:CVLT) gapped down prior to trading on Tuesday . The stock had previously closed at $149.46, but opened at $126.96. CommVault Systems shares last traded at $121.5110, with a volume of 165,918 shares trading hands.

More CommVault Systems News

Here are the key news stories impacting CommVault Systems this week:

• Positive Sentiment: Commvault reported fiscal Q1 2027 adjusted EPS of $1.42, well above the $1.16–$1.18 consensus range, while revenue of $314.13 million exceeded estimates and increased 11.4% year over year. Commvault Systems earnings report
• Positive Sentiment: Underlying recurring-revenue trends were strong: subscription revenue rose 16% to a record $267 million, subscription ARR increased 22% to $1.054 billion, and free cash flow climbed 71% to $51 million. Commvault fiscal first-quarter results
• Neutral Sentiment: Fiscal 2027 revenue guidance of approximately $1.3 billion is broadly in line with consensus, providing limited upside to estimates. Commvault guidance
• Negative Sentiment: Second-quarter revenue guidance of $310 million to $310 million is slightly below the $310.6 million consensus estimate. The reported guidance did not include a clear EPS figure, limiting visibility into near-term profitability.
• Negative Sentiment: Piper Sandler reaffirmed its Neutral rating and set a $133 price target. Although that target implies potential upside, the rating indicates the firm does not see a compelling near-term catalyst after the earnings release.
• Negative Sentiment: Bernstein Liebhard announced an investigation into potential breaches of fiduciary duty by Commvault directors and officers. The announcement does not establish wrongdoing, but it introduces legal and reputational uncertainty for shareholders. Commvault shareholder investigation alert

Analyst Upgrades and Downgrades

Several brokerages have weighed in on CVLT. Truist Financial lifted their price objective on CommVault Systems from $155.00 to $182.00 and gave the company a “buy” rating in a report on Tuesday, July 21st. Cantor Fitzgerald restated a “neutral” rating and issued a $132.00 price target on shares of CommVault Systems in a research report on Monday. DA Davidson reaffirmed a “buy” rating and issued a $125.00 price target on shares of CommVault Systems in a research note on Monday, April 13th. Mizuho upped their price objective on shares of CommVault Systems from $140.00 to $175.00 and gave the stock an “outperform” rating in a research report on Wednesday, July 15th. Finally, Piper Sandler reissued a “neutral” rating and issued a $133.00 target price on shares of CommVault Systems in a report on Tuesday. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and ten have given a Hold rating to the company. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $146.13.

CommVault Systems Stock Performance

The stock has a fifty day simple moving average of $131.80 and a two-hundred day simple moving average of $107.07. The company has a debt-to-equity ratio of 117.54, a quick ratio of 1.95 and a current ratio of 1.95. The stock has a market cap of $5.18 billion, a price-to-earnings ratio of 79.25 and a beta of 0.79.

CommVault Systems (NASDAQ:CVLT) last announced its quarterly earnings data on Tuesday, July 28th. The software maker reported $1.42 earnings per share for the quarter, topping the consensus estimate of $1.16 by $0.26. CommVault Systems had a return on equity of 51.64% and a net margin of 5.97%.The business had revenue of $314.13 million during the quarter, compared to the consensus estimate of $310.43 million. During the same period in the prior year, the company earned $1.01 EPS. CommVault Systems’s revenue for the quarter was up 11.4% on a year-over-year basis. Analysts expect that CommVault Systems, Inc. will post 2.88 EPS for the current fiscal year.

Insider Transactions at CommVault Systems

In other CommVault Systems news, CFO Gary Merrill sold 4,560 shares of the firm’s stock in a transaction that occurred on Tuesday, May 19th. The shares were sold at an average price of $105.10, for a total transaction of $479,256.00. Following the completion of the transaction, the chief financial officer owned 72,507 shares in the company, valued at approximately $7,620,485.70. This trade represents a 5.92% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CAO Danielle Nicole Abrahamsen sold 1,065 shares of the company’s stock in a transaction on Tuesday, May 19th. The shares were sold at an average price of $105.84, for a total transaction of $112,719.60. Following the completion of the sale, the chief accounting officer directly owned 13,581 shares in the company, valued at approximately $1,437,413.04. This represents a 7.27% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders have sold 55,279 shares of company stock worth $5,786,557. Company insiders own 0.86% of the company’s stock.

Institutional Investors Weigh In On CommVault Systems

Several institutional investors and hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. increased its holdings in CommVault Systems by 4.4% in the fourth quarter. Vanguard Group Inc. now owns 5,675,590 shares of the software maker’s stock worth $711,492,000 after purchasing an additional 240,093 shares in the last quarter. First Trust Advisors LP boosted its holdings in shares of CommVault Systems by 25.5% during the 4th quarter. First Trust Advisors LP now owns 1,537,034 shares of the software maker’s stock worth $192,683,000 after buying an additional 312,178 shares in the last quarter. Pictet Asset Management Holding SA boosted its holdings in shares of CommVault Systems by 36.2% during the 1st quarter. Pictet Asset Management Holding SA now owns 1,239,225 shares of the software maker’s stock worth $96,447,000 after buying an additional 329,243 shares in the last quarter. Westfield Capital Management Co. LP increased its stake in shares of CommVault Systems by 34.5% in the 4th quarter. Westfield Capital Management Co. LP now owns 1,057,077 shares of the software maker’s stock valued at $132,515,000 after acquiring an additional 270,902 shares in the last quarter. Finally, AQR Capital Management LLC lifted its position in shares of CommVault Systems by 60.8% during the 2nd quarter. AQR Capital Management LLC now owns 893,385 shares of the software maker’s stock valued at $155,744,000 after acquiring an additional 337,830 shares during the period. Institutional investors own 93.50% of the company’s stock.

About CommVault Systems

Commvault Systems, Inc is a global provider of data protection and information management software designed to help organizations manage, protect, and activate data across on-premises and cloud environments. Founded in 1996 and headquartered in Tinton Falls, New Jersey, Commvault offers a suite of integrated products and services that enable enterprises to back up, recover, archive, and analyze data. Its flagship solutions include Commvault Complete Data Protection, Commvault HyperScale, and the SaaS-based Metallic portfolio, which deliver scalable and automated data management capabilities across hybrid infrastructure environments.

Commvault’s platform is built on a unified architecture that allows customers to streamline operations, reduce complexity, and ensure data resiliency.