CommVault Systems (NASDAQ:CVLT) Issues Quarterly Earnings Results

CommVault Systems (NASDAQ:CVLT) posted its earnings results on Tuesday. The software maker reported $1.38 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.24 by $0.14, FiscalAI reports. CommVault Systems had a net margin of 5.62% and a return on equity of 88.75%. The company had revenue of $312.39 million during the quarter, compared to analysts’ expectations of $310.28 million.

CommVault Systems Stock Performance

CommVault Systems stock opened at $167.73 on Tuesday. The business has a 50 day moving average of $145.68 and a 200-day moving average of $118.31. CommVault Systems has a 1 year low of $71.75 and a 1 year high of $175.02. 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 company has a market capitalization of $6.95 billion, a P/E ratio of 106.83 and a beta of 0.79.

Wall Street Analyst Weigh In

Several analysts recently issued reports on the company. FBN Securities initiated coverage on CommVault Systems in a research note on Thursday, September 10th. They issued an “outperform” rating and a $155.00 price target for the company. Oppenheimer lifted their price objective on shares of CommVault Systems from $150.00 to $175.00 and gave the company an “outperform” rating in a research note on Friday, July 17th. Weiss Ratings reissued a “hold (c)” rating on shares of CommVault Systems in a report on Friday, September 11th. Jefferies Financial Group increased their price objective on shares of CommVault Systems from $130.00 to $170.00 and gave the company a “hold” rating in a research note on Monday. Finally, DA Davidson set a $175.00 target price on shares of CommVault Systems in a research report on Wednesday, July 29th. One investment analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and ten have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, CommVault Systems has an average rating of “Moderate Buy” and a consensus price target of $163.19.

CommVault Systems News Roundup

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

• Positive Sentiment: Quarterly results exceeded expectations. Commvault reported adjusted earnings of $1.38 per share, ahead of the $1.24 consensus estimate, while revenue of $312.39 million topped expectations of $310.28 million. Commvault Fiscal Q2 Earnings Snapshot
• Positive Sentiment: Recurring-revenue growth remained strong. Subscription revenue increased 21% year over year to $269 million, and subscription annualized recurring revenue rose 20% to $1.104 billion. The company also generated $75 million in operating cash flow and $71 million in free cash flow, supporting the investment case for its subscription transition. Commvault Announces Second Quarter Fiscal 2027 Financial Results
• Neutral Sentiment: Analysts raised targets but remain cautious. Jefferies lifted its target to $170 from $130 while retaining a Hold rating; Cantor Fitzgerald raised its target to $171 from $132 and maintained a Neutral rating. The revised targets suggest analysts see limited additional upside after the stock’s substantial advance. Jefferies Financial Group Ratings
• Neutral Sentiment: Short-interest data showed no significant bearish positioning. Reported short interest was zero shares, with a zero-day short-interest ratio. The unusual figure suggests limited short-selling pressure, although investors may want to treat the data cautiously. Commvault Short Interest Data
• Negative Sentiment: Valuation leaves little room for disappointment. Commvault trades at a triple-digit price-to-earnings ratio and near its 52-week high. Even with the earnings beat and strong recurring-revenue growth, the neutral ratings and targets near the current trading range could weigh on the shares unless growth continues to accelerate.

Insiders Place Their Bets

In other CommVault Systems news, CAO Danielle Abrahamsen sold 486 shares of the company’s stock in a transaction that occurred on Wednesday, August 19th. The shares were sold at an average price of $142.80, for a total value of $69,400.80. Following the completion of the transaction, the chief accounting officer directly owned 12,160 shares in the company, valued at approximately $1,736,448. This represents a 3.84% decrease in their position. The sale was disclosed in a legal filing with the SEC, 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, Director Vivie Lee sold 595 shares of the company’s stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $134.19, for a total transaction of $79,843.05. Following the completion of the transaction, the director owned 15,140 shares of the company’s stock, valued at approximately $2,031,636.60. This trade represents a 3.78% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 29,348 shares of company stock worth $4,202,441 over the last quarter. 0.86% of the stock is currently owned by corporate insiders.

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.