CommVault Systems (CVLT) Soars 2.32% on 23% Revenue Surge

CommVault Systems (CVLT) shares surged 2.32% intraday, reaching their highest level since February 2025, marking a three-day winning streak with a cumulative gain of 5.76%.

The strategy of buying CVLT shares after they reached a recent high and holding for one week resulted in significant returns over the past five years. The strategy achieved an overall return of 246.19%, with a benchmark return of 49.45% and an excess return of 196.74%. The CAGR was 68.61%, indicating a strong compounding effect. However, the strategy had a maximum drawdown of -21.77% and a Sharpe ratio of 1.99, suggesting that while the returns were impressive, there was also a moderate level of risk.

CommVault Systems Inc (CVLT) reported a significant 23% increase in revenue and a 68% jump in SaaS ARR, demonstrating robust growth and strategic advancements. This financial performance has likely contributed to the positive sentiment surrounding the stock.

Recent insider selling activity has also been noted, with the President selling US$11 million worth of stock on May 21. This move could indicate that some insiders are taking profits, which might temper investor enthusiasm to some extent.

Analysts have been adjusting their target prices for CVLT. KeyCorp reduced its target from $195.00 to $185.00 while maintaining an "overweight" rating. Piper Sandler lowered its target from $154.00 to $147.00 with a "neutral" rating. Conversely, Oppenheimer increased its target price from $180.00 to $200.00, giving the stock an “outperform” rating. These mixed opinions reflect the varied outlook on the company's future performance.

CVLT has been identified as a stock to watch in the cloud storage sector, which could attract more investor attention and potentially drive further price movements. The company's historical returns, including a 1-year return of 68.83% and a 5-year return of 353.12%, also underscore its strong performance over time.