CommVault Systems (NASDAQ:CVLT) Shares Gap Down – Here’s What Happened

CommVault Systems, Inc. (NASDAQ:CVLT)’s share price gapped down prior to trading on Tuesday. The stock had previously closed at $167.73, but opened at $153.73. CommVault Systems shares last traded at $166.1120, with a volume of 132,932 shares trading hands.

More CommVault Systems News

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

• Positive Sentiment: Commvault’s fiscal second-quarter results exceeded expectations: adjusted earnings were $1.38 per share versus the $1.25 consensus, while revenue reached $312.4 million, ahead of the $310.4 million estimate. Revenue increased 13.1% year over year, helping reinforce the company’s growth outlook. Commvault Systems Beats Q2 Earnings and Revenue Estimates
• Positive Sentiment: Subscription revenue rose 21% to $269 million, annualized recurring revenue increased 20% to $1.104 billion, and the company generated $75 million in operating cash flow and $71 million in free cash flow. These recurring-revenue and cash-flow trends are favorable for long-term investors. Commvault Announces Second Quarter Fiscal 2027 Financial Results
• Positive Sentiment: Analyst sentiment improved following the report. Truist reaffirmed a Buy rating and raised its target to $200 from $182; KeyCorp lifted its target to $200 from $175 and maintained Overweight; Wells Fargo raised its target to $185 from $155 and also remained Overweight. Truist Financial Analyst Action
• Positive Sentiment: Commvault introduced identity-resilience capabilities covering Active Directory, Entra ID, and Okta. The tools are designed to identify privileged-access risks and guide remediation, potentially strengthening the company’s cybersecurity product offering. Commvault Advances Identity Resilience
• Neutral Sentiment: Royal Bank of Canada raised its price target to $180 from $160 but retained a Sector Perform rating, signaling improved valuation expectations without a strongly bullish view.
• Negative Sentiment: With CVLT trading near its 52-week high and carrying a valuation above 100 times earnings, investors may be locking in gains after the earnings release. That valuation leaves the stock sensitive to expectations even though operating momentum remains strong.

Wall Street Analyst Weigh In

A number of research analysts have commented on CVLT shares. Oppenheimer boosted their target price on CommVault Systems from $150.00 to $175.00 and gave the company an “outperform” rating in a research note on Friday, July 17th. KeyCorp raised their price target on CommVault Systems from $175.00 to $200.00 and gave the stock an “overweight” rating in a research note on Wednesday. Mizuho lifted their price target on CommVault Systems from $175.00 to $185.00 and gave the company an “outperform” rating in a report on Thursday, October 15th. Wall Street Zen raised CommVault Systems from a “hold” rating to a “buy” rating in a research note on Sunday, October 18th. Finally, Scotiabank boosted their price target on CommVault Systems from $160.00 to $180.00 and gave the company a “sector perform” rating in a research note on Wednesday. One research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and ten have issued a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $174.00.

CommVault Systems Stock Down 3.5%

The firm has a 50 day moving average of $146.72 and a 200-day moving average of $118.75. The company has a debt-to-equity ratio of 16.94, a current ratio of 2.04 and a quick ratio of 2.04. The stock has a market capitalization of $6.90 billion, a P/E ratio of 106.03 and a beta of 0.79.

CommVault Systems (NASDAQ:CVLT) last posted its quarterly earnings results on Tuesday, October 27th. The software maker reported $1.38 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.25 by $0.13. The firm had revenue of $312.39 million during the quarter, compared to analyst estimates of $310.41 million. CommVault Systems had a net margin of 5.62% and a return on equity of 88.75%. The company’s quarterly revenue was up 13.1% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.91 earnings per share. On average, equities research analysts expect that CommVault Systems, Inc. will post 2.87 earnings per share for the current fiscal year.

Insider Activity at CommVault Systems

In related news, CEO Sanjay Mirchandani sold 12,437 shares of the stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $143.98, for a total value of $1,790,679.26. Following the sale, the chief executive officer directly owned 269,373 shares in the company, valued at $38,784,324.54. This trade represents a 4.41% decrease in their position. 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, CFO Gary Merrill sold 1,854 shares of the stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $143.64, for a total transaction of $266,308.56. Following the completion of the sale, the chief financial officer owned 70,921 shares in the company, valued at approximately $10,187,092.44. This trade represents a 2.55% 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. In the last quarter, insiders sold 29,348 shares of company stock worth $4,202,441. Insiders own 0.86% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the stock. Madison Asset Management LLC boosted its holdings in CommVault Systems by 39.7% in the first quarter. Madison Asset Management LLC now owns 33,459 shares of the software maker’s stock worth $2,606,000 after purchasing an additional 9,512 shares during the last quarter. Boston Trust Walden Corp raised its stake in CommVault Systems by 9.8% during the 1st quarter. Boston Trust Walden Corp now owns 270,027 shares of the software maker’s stock valued at $21,032,000 after buying an additional 24,094 shares during the last quarter. Louisiana State Employees Retirement System purchased a new stake in CommVault Systems during the 1st quarter valued at $997,000. Pinnacle Associates Ltd. raised its stake in CommVault Systems by 5.5% during the 3rd quarter. Pinnacle Associates Ltd. now owns 134,577 shares of the software maker’s stock valued at $20,176,000 after buying an additional 7,020 shares during the last quarter. Finally, Tidal Investments LLC lifted its holdings in shares of CommVault Systems by 38.3% during the 2nd quarter. Tidal Investments LLC now owns 59,661 shares of the software maker’s stock valued at $8,456,000 after buying an additional 16,523 shares during the period. Institutional investors own 93.50% of the company’s stock.

CommVault Systems Company Profile

Commvault Systems, Inc develops data protection and cyber resilience software and services for businesses, government organizations and other institutions. Its platform is designed to help customers back up, recover, manage and secure data across on-premises infrastructure, private and public clouds, software-as-a-service applications and other distributed IT environments.

The company’s offerings include backup and recovery, disaster recovery, data security, ransomware protection, cyber-recovery capabilities and data management tools.