CommVault Systems (NASDAQ:CVLT) Hits New 12-Month Low – Time to Sell?

CommVault Systems, Inc. (NASDAQ:CVLT) shares hit a new 52-week low during mid-day trading on Tuesday . The stock traded as low as $85.38 and last traded at $85.52, with a volume of 1279403 shares changing hands. The stock had previously closed at $129.36.

Key Stories Impacting CommVault Systems

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

• Positive Sentiment: Solid top-line and ARR growth — Commvault reported record quarterly revenue of $314M (+19% YoY) and ARR of $1,085M (+22% YoY), plus a high number of new customers added this fiscal year. Investors view recurring revenue strength as a durable growth signal. Article Title
• Positive Sentiment: Expanded Google Cloud partnership — Commvault announced an expanded collaboration with Google Cloud to boost enterprise protection, immutable backups and cyber resilience, which could help win larger cloud-native and hybrid customers. Article Title
• Positive Sentiment: Earnings beat reported by Zacks — Zacks reports Commvault beat Q3 consensus with $1.17 EPS vs. $0.98 expected (and revenue above estimates), signaling underlying margin or mix improvement on a year‑over‑year basis. Article Title
• Neutral Sentiment: Detail analysis on key metrics — Zacks published a follow-up comparing Commvault’s Q3 metrics to estimates and prior-year figures; useful for parsing revenue mix, ARR/ARR growth and metric trends but not a market mover by itself. Article Title
• Negative Sentiment: Conflicting/weak EPS reporting and missing/unclear EPS guidance — MarketBeat summarized an EPS figure ($0.66) that missed consensus and links to the company’s press release/slide deck; other outlets reported a beat, suggesting GAAP vs. adjusted differences or reporting confusion. More importantly, company Q4/FY revenue ranges were provided but EPS guidance was left blank/unclear — investors often punish uncertainty on near‑term profitability. Article Title
• Negative Sentiment: Valuation and balance-sheet considerations — CVLT’s trailing P/E is elevated (~50x) and debt-to-equity is high (4.18). With the stock now trading well below its 50‑ and 200‑day moving averages, any mixed guidance or EPS uncertainty can trigger outsized downside as investors re‑price future growth expectations. (No direct article link.)

Analyst Upgrades and Downgrades

A number of equities research analysts recently commented on CVLT shares. Wells Fargo & Company dropped their price objective on CommVault Systems from $220.00 to $190.00 and set an “overweight” rating for the company in a report on Wednesday, October 29th. Zacks Research upgraded shares of CommVault Systems from a “strong sell” rating to a “hold” rating in a research report on Monday, December 29th. Cantor Fitzgerald reissued a “neutral” rating on shares of CommVault Systems in a research note on Tuesday, January 20th. Guggenheim lowered their target price on shares of CommVault Systems from $220.00 to $200.00 and set a “buy” rating for the company in a research note on Friday, January 16th. Finally, DA Davidson cut their target price on shares of CommVault Systems from $220.00 to $185.00 and set a “buy” rating on the stock in a report on Thursday, January 22nd. Two investment analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, CommVault Systems has a consensus rating of “Moderate Buy” and a consensus target price of $178.33.

CommVault Systems Stock Down 29.5%

The firm has a market capitalization of $4.02 billion, a P/E ratio of 50.80 and a beta of 0.57. The firm’s 50 day moving average is $123.73 and its two-hundred day moving average is $154.99. The company has a debt-to-equity ratio of 4.18, a current ratio of 2.53 and a quick ratio of 2.53.

CommVault Systems (NASDAQ:CVLT) last issued its earnings results on Tuesday, October 28th. The software maker reported $0.91 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.95 by ($0.04). The firm had revenue of $276.19 million during the quarter, compared to analyst estimates of $273.31 million. CommVault Systems had a net margin of 7.32% and a return on equity of 31.53%. The company’s revenue for the quarter was up 18.4% on a year-over-year basis. During the same quarter last year, the business posted $0.83 earnings per share. Research analysts predict that CommVault Systems, Inc. will post 1.65 EPS for the current year.

Insider Activity

In related news, CEO Sanjay Mirchandani sold 14,653 shares of CommVault Systems stock in a transaction that occurred on Tuesday, November 18th. The stock was sold at an average price of $123.65, for a total transaction of $1,811,843.45. Following the completion of the sale, the chief executive officer directly owned 372,369 shares of the company’s stock, valued at approximately $46,043,426.85. This trade represents a 3.79% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CFO Jennifer Leigh Dirico sold 830 shares of CommVault Systems stock in a transaction on Tuesday, November 18th. The stock was sold at an average price of $123.58, for a total value of $102,571.40. Following the sale, the chief financial officer directly owned 44,313 shares of the company’s stock, valued at $5,476,200.54. This represents a 1.84% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 33,111 shares of company stock valued at $4,058,851 over the last ninety days. 1.00% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the company. Assetmark Inc. grew its position in CommVault Systems by 33.6% in the fourth quarter. Assetmark Inc. now owns 326 shares of the software maker’s stock valued at $41,000 after acquiring an additional 82 shares during the last quarter. State of Alaska Department of Revenue raised its stake in shares of CommVault Systems by 93.6% during the fourth quarter. State of Alaska Department of Revenue now owns 9,283 shares of the software maker’s stock valued at $1,163,000 after acquiring an additional 4,487 shares during the last quarter. Diversify Advisory Services LLC lifted its holdings in shares of CommVault Systems by 9.8% during the fourth quarter. Diversify Advisory Services LLC now owns 3,018 shares of the software maker’s stock worth $369,000 after purchasing an additional 269 shares during the period. Portside Wealth Group LLC lifted its holdings in shares of CommVault Systems by 9.6% during the fourth quarter. Portside Wealth Group LLC now owns 5,315 shares of the software maker’s stock worth $666,000 after purchasing an additional 466 shares during the period. Finally, FNY Investment Advisers LLC bought a new stake in shares of CommVault Systems in the fourth quarter worth $36,000. 93.50% of the stock is owned by institutional investors.

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.