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

CommVault Systems, Inc. (NASDAQ:CVLT)’s stock price gapped down before the market opened 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 changing hands.

More CommVault Systems News

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

• Positive Sentiment: Commvault reported quarterly earnings of $1.38 per share, above the $1.24–$1.25 analyst consensus and up from $0.91 a year earlier. Revenue reached $312.39 million, also exceeding estimates of approximately $310 million, while growing 13.1% year over year. Commvault Systems Beats Q2 Earnings and Revenue Estimates
• Positive Sentiment: The company’s recurring-revenue indicators were particularly strong: subscription revenue increased 21% to $269 million, and subscription annualized recurring revenue rose 20% to $1.104 billion. Operating cash flow was $75 million and free cash flow was $71 million, supporting the investment case for Commvault’s recurring software model. Commvault Announces Second Quarter Fiscal 2027 Financial Results
• Neutral Sentiment: Investors are also assessing operating and business metrics beyond headline revenue and EPS, including how they compared with Wall Street expectations and the year-ago period. The available report highlights the importance of these indicators but does not provide additional metric details. Compared to Estimates, Commvault Q2 Earnings: A Look at Key Metrics
• Negative Sentiment: Jefferies and Cantor Fitzgerald raised their price targets to $170 and $171, respectively, but retained Hold and Neutral ratings. With the stock trading near those targets and valued at a high earnings multiple, the upgrades may offer limited incremental buying support. Jefferies price target

Wall Street Analyst Weigh In

Several analysts have issued reports on CVLT shares. Jefferies Financial Group raised their price objective on shares of CommVault Systems from $130.00 to $170.00 and gave the stock a “hold” rating in a research note on Monday. Mizuho upped their target price on CommVault Systems from $175.00 to $185.00 and gave the company an “outperform” rating in a research note on Thursday, October 15th. Guggenheim reaffirmed a “buy” rating on shares of CommVault Systems in a research note on Tuesday, July 28th. UBS Group reiterated a “neutral” rating on shares of CommVault Systems in a report on Monday, July 27th. Finally, Scotiabank raised their price target on CommVault Systems from $130.00 to $160.00 and gave the stock a “sector perform” rating in a research note on Monday, October 5th. One investment analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and ten have issued a Hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $163.19.

CommVault Systems Price Performance

The firm has a fifty day simple moving average of $145.68 and a 200 day simple moving average of $118.31. The company has a market capitalization of $7.03 billion, a PE ratio of 107.41 and a beta of 0.79. The company has a debt-to-equity ratio of 16.94, a quick ratio of 2.04 and a current ratio of 2.04.

CommVault Systems (NASDAQ:CVLT) last issued its earnings results on Tuesday, October 27th. The software maker reported $1.38 earnings per share for the quarter, topping the consensus estimate of $1.24 by $0.14. CommVault Systems had a return on equity of 88.75% and a net margin of 5.62%. The business had revenue of $312.39 million during the quarter, compared to analysts’ expectations of $310.28 million. During the same period in the prior year, the business earned $0.91 EPS. The business’s revenue for the quarter was up 13.1% compared to the same quarter last year. Equities analysts anticipate that CommVault Systems, Inc. will post 2.87 EPS for the current year.

Insider Buying and Selling

In other CommVault Systems news, CFO Gary Merrill sold 1,293 shares of the firm’s stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $142.80, for a total transaction of $184,640.40. Following the transaction, the chief financial officer owned 69,628 shares of the company’s stock, valued at approximately $9,942,878.40. This trade represents a 1.82% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 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 6,857 shares of the business’s stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $142.80, for a total transaction of $979,179.60. Following the completion of the sale, the chief executive officer owned 257,676 shares of the company’s stock, valued at approximately $36,796,132.80. This represents a 2.59% 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. Insiders sold 29,348 shares of company stock valued at $4,202,441 over the last quarter. 0.86% of the stock is owned by company insiders.

Hedge Funds Weigh In On CommVault Systems

A number of hedge funds and other institutional investors have recently modified their holdings of CVLT. Maxi Investments CY Ltd purchased a new position in CommVault Systems during the third quarter valued at approximately $585,000. Fifth Third Wealth Advisors LLC bought a new position in CommVault Systems in the third quarter worth approximately $213,000. Sterling Capital Management LLC lifted its holdings in CommVault Systems by 12.8% during the third quarter. Sterling Capital Management LLC now owns 8,786 shares of the software maker’s stock worth $1,317,000 after buying an additional 996 shares during the period. Root Financial Partners LLC purchased a new stake in CommVault Systems during the third quarter worth $49,000. Finally, Strengthening Families & Communities LLC lifted its holdings in CommVault Systems by 3.3% during the third quarter. Strengthening Families & Communities LLC now owns 17,283 shares of the software maker’s stock worth $2,591,000 after buying an additional 550 shares during the period. 93.50% of the stock is currently owned by institutional investors.

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.