CommVault Systems (NASDAQ:CVLT) Stock Falls 9.5% – Here’s Why

CommVault Systems, Inc. (NASDAQ:CVLT) fell 9.5% during trading on Friday. The company traded as low as $151.48 and last traded at $150.4330. 251,324 shares were traded during mid-day trading, a decline of 70% from the average session volume of 845,623 shares. The stock had previously closed at $166.16.

Analyst Ratings Changes

CVLT has been the subject of a number of research reports. Mizuho set a $200.00 target price on shares of CommVault Systems in a report on Wednesday. DA Davidson boosted their price target on CommVault Systems from $185.00 to $210.00 and gave the company a “buy” rating in a research report on Wednesday, October 28th. Wells Fargo & Company upped their price objective on CommVault Systems from $155.00 to $185.00 and gave the company an “overweight” rating in a research note on Wednesday, October 28th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of CommVault Systems in a research note on Friday, September 11th. Finally, Jefferies Financial Group increased their price objective on CommVault Systems from $130.00 to $170.00 and gave the stock a “hold” rating in a research report on Monday, October 26th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and nine have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $174.94.

CommVault Systems Price Performance

The company has a current ratio of 1.94, a quick ratio of 1.94 and a debt-to-equity ratio of 70.45. The stock has a fifty day simple moving average of $153.26 and a two-hundred day simple moving average of $120.94. The company has a market cap of $6.24 billion, a PE ratio of 78.95 and a beta of 0.90.

CommVault Systems (NASDAQ:CVLT) last issued its earnings results on Tuesday, October 27th. The software maker reported $1.38 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.25 by $0.13. The business had revenue of $312.39 million during the quarter, compared to the consensus estimate of $310.41 million. CommVault Systems had a return on equity of 169.40% and a net margin of 6.60%. The company’s revenue for the quarter was up 13.1% on a year-over-year basis. During the same period in the prior year, the business posted $0.91 EPS. On average, equities analysts predict that CommVault Systems, Inc. will post 2.98 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CAO Danielle Abrahamsen sold 486 shares of the company’s stock in a transaction on Wednesday, August 19th. The stock was sold at an average price of $142.80, for a total transaction of $69,400.80. Following the transaction, the chief accounting officer owned 12,160 shares of the company’s stock, valued at $1,736,448. This represents a 3.84% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at 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, CEO Sanjay Mirchandani sold 12,437 shares of the stock in a transaction on Monday, August 17th. The stock was sold at an average price of $143.98, for a total value of $1,790,679.26. Following the completion of the transaction, the chief executive officer owned 269,373 shares of the company’s stock, valued at $38,784,324.54. The trade was a 4.41% decrease in their position. The SEC filing for this sale provides additional information. 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. Insiders have sold 28,277 shares of company stock valued at $4,058,723 over the last quarter. Company insiders own 0.86% of the company’s stock.

Hedge Funds Weigh In On CommVault Systems

A number of large investors have recently made changes to their positions in the stock. Buckland Partners Management Co LLC boosted its holdings in CommVault Systems by 56.7% during the third quarter. Buckland Partners Management Co LLC now owns 4,700 shares of the software maker’s stock worth $705,000 after buying an additional 1,700 shares in the last quarter. AlphaGrep UK Ltd increased its holdings in CommVault Systems by 104.3% in the third quarter. AlphaGrep UK Ltd now owns 4,130 shares of the software maker’s stock valued at $619,000 after buying an additional 2,108 shares in the last quarter. First Trust Advisors LP increased its holdings in CommVault Systems by 11.3% in the third quarter. First Trust Advisors LP now owns 1,215,053 shares of the software maker’s stock valued at $182,161,000 after buying an additional 123,348 shares in the last quarter. Advisors Asset Management Inc. purchased a new stake in shares of CommVault Systems during the 3rd quarter worth approximately $314,000. Finally, GW&K Investment Management LLC boosted its stake in shares of CommVault Systems by 1.2% during the 3rd quarter. GW&K Investment Management LLC now owns 224,891 shares of the software maker’s stock worth $33,716,000 after acquiring an additional 2,638 shares in the last quarter. Hedge funds and other institutional investors own 93.50% of the company’s stock.

CommVault Systems Company Profile

Commvault Systems, which operates as Commvault, develops data protection and cyber resilience software for businesses and other organizations. Its offerings help customers back up, recover, manage and secure data across on-premises systems, public clouds and hybrid environments. The company’s Commvault Cloud platform and related services support data recovery, cyberattack readiness and data management. Its tools are designed to help organizations protect information across different workloads and storage environments.