CommVault Systems (NASDAQ:CVLT) Shares Gap Down After Analyst Downgrade

CommVault Systems, Inc. (NASDAQ:CVLT) shares gapped down prior to trading on Tuesday after Piper Sandler downgraded the stock from an overweight rating to a neutral rating. The stock had previously closed at $149.46, but opened at $126.96. Piper Sandler now has a $133.00 price target on the stock. CommVault Systems shares last traded at $121.5110, with a volume of 165,918 shares trading hands.

CVLT has been the topic of several other research reports. KeyCorp upped their price objective on CommVault Systems from $125.00 to $175.00 and gave the company an “overweight” rating in a research note on Thursday, July 16th. Weiss Ratings upgraded CommVault Systems from a “hold (c-)” rating to a “hold (c)” rating in a research note on Tuesday, June 16th. Wall Street Zen downgraded CommVault Systems from a “buy” rating to a “hold” rating in a research note on Saturday, May 16th. UBS Group reissued a “neutral” rating on shares of CommVault Systems in a report on Monday. Finally, Robert W. Baird lowered their price target on shares of CommVault Systems from $185.00 to $160.00 and set an “outperform” rating on the stock in a research report on Monday, April 13th. One equities research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and ten have given a Hold rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $152.47.

Insider Activity

In other news, CFO Gary Merrill sold 4,560 shares of the company’s stock in a transaction on Tuesday, May 19th. The shares were sold at an average price of $105.10, for a total value of $479,256.00. Following the transaction, the chief financial officer owned 72,507 shares of the company’s stock, valued at approximately $7,620,485.70. This represents a 5.92% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 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 stock in a transaction on Tuesday, May 19th. The stock was sold at an average price of $105.84, for a total value of $112,719.60. Following the completion of the sale, the chief accounting officer owned 13,581 shares in the company, valued at $1,437,413.04. This trade represents a 7.27% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 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 ninety days, insiders sold 55,279 shares of company stock worth $5,786,557. 0.86% of the stock is owned by company insiders.

Key Headlines Impacting CommVault Systems

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

• Positive Sentiment: Fiscal Q1 results beat expectations. Commvault reported non-GAAP EPS of $1.42, above the $1.16-$1.18 consensus range, while revenue of $314.13 million exceeded estimates of roughly $310 million. EPS increased from $1.01 a year ago and revenue rose 11.4%. Commvault Systems Beats Q1 Earnings and Revenue Estimates
• Positive Sentiment: SaaS and recurring-revenue growth remained strong. Subscription revenue rose 16% year over year to a record $267 million, subscription ARR increased 22% to $1.054 billion, and free cash flow grew 71% to $51 million. These trends support the company’s transition toward more predictable, higher-quality recurring revenue. Commvault Announces First Quarter Fiscal 2027 Financial Results
• Neutral Sentiment: Full-year revenue guidance was broadly in line. Commvault forecast fiscal 2027 revenue of approximately $1.3 billion, matching consensus. However, the company did not provide a clear EPS outlook in the reported guidance update. CVLT Q1 Earnings Beat Estimates
• Negative Sentiment: Near-term guidance offered little upside. Second-quarter revenue guidance of $310 million was slightly below the approximately $310.6 million consensus estimate, reinforcing concerns that growth may not accelerate immediately.
• Negative Sentiment: Piper Sandler downgraded CVLT to Neutral from Overweight. The firm cited a lack of catalysts, even though its $133 price target remained above the recent trading level. The downgrade likely amplified the market’s negative reaction to an otherwise solid earnings report. Commvault Collapses After Q1 Results

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of CVLT. Vanguard Group Inc. grew its stake in CommVault Systems by 4.4% in the 4th quarter. Vanguard Group Inc. now owns 5,675,590 shares of the software maker’s stock worth $711,492,000 after buying an additional 240,093 shares in the last quarter. First Trust Advisors LP grew its position in CommVault Systems by 25.5% in the fourth quarter. First Trust Advisors LP now owns 1,537,034 shares of the software maker’s stock worth $192,683,000 after acquiring an additional 312,178 shares in the last quarter. Pictet Asset Management Holding SA increased its stake in CommVault Systems by 36.2% in the first quarter. Pictet Asset Management Holding SA now owns 1,239,225 shares of the software maker’s stock valued at $96,447,000 after acquiring an additional 329,243 shares during the last quarter. Westfield Capital Management Co. LP raised its position in CommVault Systems by 34.5% during the fourth quarter. Westfield Capital Management Co. LP now owns 1,057,077 shares of the software maker’s stock valued at $132,515,000 after purchasing an additional 270,902 shares in the last quarter. Finally, AQR Capital Management LLC raised its position in CommVault Systems by 60.8% during the second quarter. AQR Capital Management LLC now owns 893,385 shares of the software maker’s stock valued at $155,744,000 after purchasing an additional 337,830 shares in the last quarter. 93.50% of the stock is currently owned by institutional investors.

CommVault Systems Stock Performance

The company has a 50 day simple moving average of $132.47 and a 200-day simple moving average of $106.98. The company has a debt-to-equity ratio of 16.94, a current ratio of 2.04 and a quick ratio of 1.95. The stock has a market cap of $4.98 billion, a P/E ratio of 76.63 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 EPS for the quarter, beating the consensus estimate of $1.16 by $0.26. The firm had revenue of $314.13 million for the quarter, compared to analyst estimates of $310.43 million. CommVault Systems had a return on equity of 88.75% and a net margin of 5.62%.The company’s revenue was up 11.4% on a year-over-year basis. During the same period in the prior year, the company earned $1.01 EPS. On average, equities analysts expect that CommVault Systems, Inc. will post 2.88 earnings per share for the current fiscal year.

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.