CommVault Systems (NASDAQ:CVLT) Shares Gap Down – What’s Next?

CommVault Systems, Inc. (NASDAQ:CVLT)’s stock price gapped down before the market opened on Tuesday . The stock had previously closed at $149.46, but opened at $126.96. CommVault Systems shares last traded at $121.5110, with a volume of 165,918 shares trading hands.

Key CommVault Systems News

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

• Positive Sentiment: Commvault reported fiscal Q1 2027 adjusted EPS of $1.42, well above the $1.16–$1.18 consensus range, while revenue of $314.13 million exceeded estimates and increased 11.4% year over year. Commvault Systems earnings report
• Positive Sentiment: Underlying recurring-revenue trends were strong: subscription revenue rose 16% to a record $267 million, subscription ARR increased 22% to $1.054 billion, and free cash flow climbed 71% to $51 million. Commvault fiscal first-quarter results
• Neutral Sentiment: Fiscal 2027 revenue guidance of approximately $1.3 billion is broadly in line with consensus, providing limited upside to estimates. Commvault guidance
• Negative Sentiment: Second-quarter revenue guidance of $310 million to $310 million is slightly below the $310.6 million consensus estimate. The reported guidance did not include a clear EPS figure, limiting visibility into near-term profitability.
• Negative Sentiment: Piper Sandler reaffirmed its Neutral rating and set a $133 price target. Although that target implies potential upside, the rating indicates the firm does not see a compelling near-term catalyst after the earnings release.
• Negative Sentiment: Bernstein Liebhard announced an investigation into potential breaches of fiduciary duty by Commvault directors and officers. The announcement does not establish wrongdoing, but it introduces legal and reputational uncertainty for shareholders. Commvault shareholder investigation alert

Analysts Set New Price Targets

CVLT has been the subject of several research analyst reports. Robert W. Baird reduced their price target on shares of CommVault Systems from $185.00 to $160.00 and set an “outperform” rating for the company in a report on Monday, April 13th. Oppenheimer increased their target price on CommVault Systems from $150.00 to $175.00 and gave the stock an “outperform” rating in a report on Friday, July 17th. Wolfe Research started coverage on CommVault Systems in a research note on Friday, May 1st. They issued a “peer perform” rating on the stock. Zacks Research lowered CommVault Systems from a “strong-buy” rating to a “hold” rating in a report on Friday, May 1st. Finally, Stephens upped their price objective on CommVault Systems from $135.00 to $155.00 and gave the stock an “overweight” rating in a research report on Tuesday, June 16th. One investment analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and ten have given a Hold rating to the stock. According to data from MarketBeat.com, CommVault Systems currently has an average rating of “Moderate Buy” and an average price target of $146.13.

CommVault Systems Stock Down 16.3%

The firm has a fifty day moving average of $131.80 and a 200-day moving average of $107.07. The company has a quick ratio of 1.95, a current ratio of 1.95 and a debt-to-equity ratio of 117.54. The firm has a market cap of $5.18 billion, a P/E ratio of 79.25 and a beta of 0.79.

CommVault Systems (NASDAQ:CVLT) last posted its quarterly earnings results on Tuesday, July 28th. The software maker reported $1.42 earnings per share for the quarter, topping the consensus estimate of $1.16 by $0.26. The firm had revenue of $314.13 million for the quarter, compared to analyst estimates of $310.43 million. CommVault Systems had a return on equity of 51.64% and a net margin of 5.97%.The business’s quarterly revenue was up 11.4% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.01 EPS. On average, equities research analysts anticipate that CommVault Systems, Inc. will post 2.88 earnings per share for the current year.

Insider Activity

In related news, CEO Sanjay Mirchandani sold 8,450 shares of the stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $99.13, for a total value of $837,648.50. Following the sale, the chief executive officer owned 306,927 shares in the company, valued at approximately $30,425,673.51. This represents a 2.68% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 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 254 shares of the firm’s stock in a transaction on Thursday, July 2nd. The shares were sold at an average price of $150.00, for a total value of $38,100.00. Following the sale, the chief accounting officer directly owned 13,156 shares of the company’s stock, valued at $1,973,400. This represents a 1.89% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 55,279 shares of company stock valued at $5,786,557 over the last three months. Insiders own 0.86% of the company’s stock.

Institutional Trading of CommVault Systems

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Boston Trust Walden Corp bought a new stake in CommVault Systems in the 4th quarter valued at $30,830,000. Intech Investment Management LLC increased its position in CommVault Systems by 52.4% during the 4th quarter. Intech Investment Management LLC now owns 86,634 shares of the software maker’s stock worth $10,860,000 after buying an additional 29,796 shares during the period. Epoch Investment Partners Inc. bought a new position in CommVault Systems during the 4th quarter worth $27,278,000. Madison Asset Management LLC increased its position in CommVault Systems by 39.7% during the first quarter. Madison Asset Management LLC now owns 33,459 shares of the software maker’s stock worth $2,606,000 after acquiring an additional 9,512 shares during the period. Finally, BNP Paribas Financial Markets raised its stake in CommVault Systems by 410.8% in the 4th quarter. BNP Paribas Financial Markets now owns 320,468 shares of the software maker’s stock worth $40,174,000 after purchasing an additional 257,729 shares in the last quarter. Institutional investors own 93.50% of the company’s stock.

About CommVault Systems

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.