CommVault Systems (NASDAQ:CVLT) Trading Down 7.6% Following Weak Earnings

CommVault Systems, Inc. (NASDAQ:CVLT)’s stock price dropped 7.6% on Wednesday following a weaker than expected earnings announcement. The company traded as low as $138.00 and last traded at $134.7250. Approximately 472,150 shares were traded during mid-day trading, a decline of 14% from the average daily volume of 551,549 shares. The stock had previously closed at $145.78.

The software maker reported $0.91 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.95 by ($0.04). CommVault Systems had a return on equity of 31.53% and a net margin of 7.32%.The business had revenue of $276.19 million for the quarter, compared to analysts’ expectations of $273.31 million. During the same period in the previous year, the company earned $0.83 EPS. CommVault Systems’s quarterly revenue was up 18.4% compared to the same quarter last year. CommVault Systems has set its Q3 2026 guidance at EPS. FY 2026 guidance at EPS.

Analyst Ratings Changes

CVLT has been the subject of a number of research reports. Piper Sandler raised shares of CommVault Systems from a “neutral” rating to an “overweight” rating and upped their target price for the stock from $195.00 to $200.00 in a report on Monday, October 13th. Wall Street Zen lowered shares of CommVault Systems from a “strong-buy” rating to a “buy” rating in a report on Sunday, September 21st. Weiss Ratings reissued a “hold (c)” rating on shares of CommVault Systems in a report on Wednesday, October 8th. DA Davidson upped their price objective on shares of CommVault Systems from $200.00 to $220.00 and gave the company a “buy” rating in a report on Wednesday, July 30th. Finally, Wells Fargo & Company dropped their price objective on shares of CommVault Systems from $220.00 to $190.00 and set an “overweight” rating for the company in a report on Wednesday. Two investment analysts have rated the stock with a Strong Buy rating, nine have issued a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, CommVault Systems presently has an average rating of “Moderate Buy” and an average target price of $195.10.

Insider Activity

In related news, CFO Jennifer Leigh Dirico sold 14,909 shares of the company’s stock in a transaction dated Tuesday, September 9th. The shares were sold at an average price of $182.22, for a total value of $2,716,717.98. Following the completion of the sale, the chief financial officer owned 45,143 shares of the company’s stock, valued at approximately $8,225,957.46. This represents a 24.83% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, insider Gary Merrill sold 15,244 shares of the company’s stock in a transaction dated Friday, September 12th. The shares were sold at an average price of $178.01, for a total transaction of $2,713,584.44. Following the completion of the transaction, the insider directly owned 71,837 shares in the company, valued at $12,787,704.37. The trade was a 17.51% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 55,942 shares of company stock worth $10,019,157. Company insiders own 1.00% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the stock. Invesco Ltd. lifted its position in CommVault Systems by 7.1% in the first quarter. Invesco Ltd. now owns 1,777,307 shares of the software maker’s stock valued at $280,388,000 after buying an additional 117,199 shares during the last quarter. Acadian Asset Management LLC lifted its position in CommVault Systems by 2.9% in the first quarter. Acadian Asset Management LLC now owns 1,505,357 shares of the software maker’s stock valued at $237,454,000 after buying an additional 43,075 shares during the last quarter. Geode Capital Management LLC lifted its position in CommVault Systems by 2.0% in the second quarter. Geode Capital Management LLC now owns 1,337,403 shares of the software maker’s stock valued at $233,172,000 after buying an additional 26,207 shares during the last quarter. AQR Capital Management LLC lifted its position in CommVault Systems by 60.8% in the second quarter. AQR Capital Management LLC now owns 893,385 shares of the software maker’s stock valued at $155,744,000 after buying an additional 337,830 shares during the last quarter. Finally, Nuveen LLC acquired a new position in CommVault Systems in the first quarter valued at about $116,223,000. Institutional investors and hedge funds own 93.50% of the company’s stock.

CommVault Systems Price Performance

The company has a market cap of $6.23 billion, a price-to-earnings ratio of 78.73 and a beta of 0.72. The company has a quick ratio of 1.24, a current ratio of 2.53 and a debt-to-equity ratio of 4.18. The stock’s 50-day simple moving average is $179.30 and its 200 day simple moving average is $176.40.

CommVault Systems Company Profile

Commvault Systems, Inc provides data protection platform that helps customers to secure, defend, and recover their data in the United States and internationally. The company offers Commvault Backup and Recovery, a backup and recovery solution; Commvault Disaster Recovery, a replication and disaster recovery solution; Commvault Complete Data Protection, a data protection solution; and Metallic Data Protection as-a-service, which delivers enterprise-grade data protection as a service on a cloud platform, with advanced built-in security controls.