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

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

Other research analysts also recently issued reports about the stock. UBS Group reaffirmed a “neutral” rating on shares of CommVault Systems in a report on Monday. Mizuho increased their target price on CommVault Systems from $140.00 to $175.00 and gave the stock an “outperform” rating in a research report on Wednesday, July 15th. Scotiabank raised their price target on CommVault Systems from $105.00 to $110.00 and gave the stock a “sector perform” rating in a report on Wednesday, April 29th. Oppenheimer lifted their price target on CommVault Systems from $150.00 to $175.00 and gave the company an “outperform” rating in a research report on Friday, July 17th. Finally, DA Davidson reiterated a “buy” rating and set a $125.00 price objective on shares of CommVault Systems in a research note on Monday, April 13th. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and ten have given a Hold rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $152.47.

Insider Activity at CommVault Systems

In other CommVault Systems news, CEO Sanjay Mirchandani sold 19,396 shares of the stock in a transaction that occurred on Tuesday, May 19th. The shares were sold at an average price of $105.49, for a total value of $2,046,084.04. Following the sale, the chief executive officer directly owned 315,377 shares in the company, valued at $33,269,119.73. This represents a 5.79% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through 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, CAO Danielle Nicole Abrahamsen sold 1,065 shares of the firm’s stock in a transaction on Tuesday, May 19th. The shares were sold at an average price of $105.84, for a total transaction of $112,719.60. Following the completion of the transaction, the chief accounting officer directly owned 13,581 shares of the company’s stock, valued at approximately $1,437,413.04. The trade was a 7.27% decrease in their ownership of the stock. 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 90 days, insiders sold 55,279 shares of company stock valued at $5,786,557. Corporate insiders own 0.86% of the company’s stock.

Key CommVault Systems News

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

Hedge Funds Weigh In On CommVault Systems

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Versant Capital Management Inc raised its holdings in shares of CommVault Systems by 15.8% in the 2nd quarter. Versant Capital Management Inc now owns 595 shares of the software maker’s stock valued at $84,000 after acquiring an additional 81 shares in the last quarter. Assetmark Inc. grew its holdings in shares of CommVault Systems by 33.6% during the fourth quarter. Assetmark Inc. now owns 326 shares of the software maker’s stock worth $41,000 after purchasing an additional 82 shares in the last quarter. Captrust Financial Advisors grew its holdings in shares of CommVault Systems by 7.2% during the fourth quarter. Captrust Financial Advisors now owns 2,153 shares of the software maker’s stock worth $270,000 after purchasing an additional 145 shares in the last quarter. MML Investors Services LLC increased its position in shares of CommVault Systems by 6.7% in the fourth quarter. MML Investors Services LLC now owns 2,361 shares of the software maker’s stock worth $296,000 after purchasing an additional 149 shares during the last quarter. Finally, Madison Asset Management LLC increased its position in shares of CommVault Systems by 0.6% in the fourth quarter. Madison Asset Management LLC now owns 23,947 shares of the software maker’s stock worth $3,002,000 after purchasing an additional 153 shares during the last quarter. 93.50% of the stock is currently owned by hedge funds and other institutional investors.

CommVault Systems Price Performance

The firm has a market capitalization of $4.98 billion, a PE ratio of 76.63 and a beta of 0.79. 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 business’s 50 day moving average is $132.47 and its two-hundred day moving average is $106.98.

CommVault Systems (NASDAQ:CVLT) last released its quarterly earnings results on Tuesday, July 28th. The software maker reported $1.42 EPS for the quarter, topping analysts’ consensus estimates of $1.16 by $0.26. The business had revenue of $314.13 million during the quarter, compared to analysts’ expectations of $310.43 million. CommVault Systems had a net margin of 5.62% and a return on equity of 88.75%. The business’s quarterly revenue was up 11.4% compared to the same quarter last year. During the same quarter in the previous year, the company earned $1.01 EPS. As a group, research analysts anticipate that CommVault Systems, Inc. will post 2.88 EPS for the current year.

CommVault Systems Company Profile

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.