Why Commvault Systems (CVLT) Stock Is Trading Lower Today

What Happened?

Shares of data backup provider Commvault (NASDAQ:CVLT) fell 10.4% in the morning session after a Guggenheim analyst downgraded the stock's rating from Buy to Neutral, citing near-term challenges in the company's (CVLT) sales channels due to the poor performance of some resellers.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Commvault Systems? Access our full analysis report here, it’s free.

What The Market Is Telling Us

Commvault Systems’s shares are not very volatile and have only had 4 moves greater than 5% over the last year. Moves this big are rare for Commvault Systems and indicate this news significantly impacted the market’s perception of the business. 

The biggest move we wrote about over the last year was 3 months ago when the stock gained 20.5% on the news that the company reported a "beat and raise" quarter. Commvault Systems blew past analysts' revenue, billings, adjusted operating income, and EPS expectations. Looking ahead, guidance was promising as CVLT raised its full-year revenue guidance. Overall, this was a really good quarter that should please shareholders.

Commvault Systems is up 92.8% since the beginning of the year, but at $148.39 per share, it is still trading 9.5% below its 52-week high of $163.91 from October 2024. Investors who bought $1,000 worth of Commvault Systems’s shares 5 years ago would now be looking at an investment worth $3,280.

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