Commvault Systems, Inc. (CVLT) Bundle
Who Invests in Commvault Systems, Inc. (CVLT) and Why?
Who Invests in Commvault Systems, Inc. (CVLT) and Why?
Understanding the investor landscape for Commvault Systems, Inc. provides insight into who is backing the company and the rationale behind their investments. The primary investor types include retail investors, institutional investors, and hedge funds.
Key Investor Types
- Retail Investors: Individual investors who purchase shares through brokerage accounts. They are often attracted to growth potential and company performance.
- Institutional Investors: Entities such as mutual funds, pension funds, and insurance companies that invest large sums of money. As of September 30, 2024, institutional ownership was approximately 90% of total shares outstanding.
- Hedge Funds: Investment funds that employ various strategies to earn active returns for their investors. Hedge funds currently hold around 15% of the shares, focusing on short-term trading strategies.
Investment Motivations
Investors are drawn to Commvault for various reasons:
- Growth Prospects: The company reported a 15% increase in total revenues year-over-year for the six months ended September 30, 2024, driven by a 32% increase in subscription revenue.
- Market Position: Commvault holds a strong position in the data protection and management sector, with subscription revenue accounting for 56% of total revenues as of the same period.
- Dividends: While Commvault has not historically paid dividends, the potential for future payouts remains a consideration for income-focused investors.
Investment Strategies
Investors utilize different strategies when investing in Commvault:
- Long-Term Holding: Many institutional investors adopt a long-term perspective, investing in the company's growth trajectory.
- Short-Term Trading: Hedge funds often engage in short-term trading, capitalizing on stock price fluctuations.
- Value Investing: Some investors are focused on the intrinsic value of the company relative to its stock price, particularly after the acquisition of Appranix for $26.3 million in April 2024.
Investor Statistics
| Investor Type | Ownership Percentage | Investment Motivation |
|---|---|---|
| Retail Investors | 10% | Growth Potential |
| Institutional Investors | 90% | Market Position |
| Hedge Funds | 15% | Short-Term Strategies |
As of September 30, 2024, the company’s cash and cash equivalents stood at $303.1 million, bolstering investor confidence in its operational stability and growth potential.
Commvault's revenue for the six months ended September 30, 2024, reached $457.9 million, reinforcing its appeal to both institutional and retail investors.
Institutional Ownership and Major Shareholders of Commvault Systems, Inc. (CVLT)
Institutional Ownership and Major Shareholders
As of September 30, 2024, the following table lists the top institutional investors and their shareholdings in Commvault Systems, Inc. (CVLT):
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 5,147,614 | 11.75% |
| BlackRock, Inc. | 4,702,504 | 10.78% |
| State Street Corporation | 3,214,303 | 7.38% |
| Wellington Management Co. LLP | 2,341,256 | 5.36% |
| Invesco Ltd. | 1,658,734 | 3.82% |
Recent changes in ownership indicate that institutional investors have actively adjusted their stakes. For example, as of the latest filings, The Vanguard Group increased its holdings by 2.5%, while BlackRock's holdings decreased by 1.2% in the past quarter.
Impact of Institutional Investors
Institutional investors play a crucial role in the stock price and strategic direction of Commvault Systems, Inc. The presence of large institutional shareholders often leads to increased stock price stability and greater investor confidence. For instance, the significant holdings by The Vanguard Group and BlackRock have been associated with a 15% increase in stock value over the past year.
Moreover, these institutional investors are influential in corporate governance, often advocating for strategies that align with shareholder interests, such as expanding subscription-based revenue models and enhancing operational efficiencies. This strategic alignment can drive both short-term performance and long-term growth prospects for the company.
As of September 30, 2024, the total number of outstanding shares was approximately 43,739,000, reflecting a market capitalization of around $1.41 billion. The institutional ownership structure indicates a healthy level of confidence in the company's future performance, particularly in its transition towards subscription-based revenue streams.
Key Investors and Their Influence on Commvault Systems, Inc. (CVLT)
Key Investors and Their Impact on Commvault Systems, Inc. (CVLT)
Commvault Systems, Inc. (CVLT) has attracted attention from several notable investors, which significantly influences the company's strategic direction and stock performance.
Notable Investors
Key investors include:
- BlackRock, Inc. - One of the largest asset managers globally, holding approximately 10.5% of total shares as of the latest filings.
- The Vanguard Group, Inc. - Another major institutional investor with a stake of around 8.2%.
- Wellington Management Company, LLP - Known for its active management approach, holding nearly 7.5% of shares.
- Renaissance Technologies LLC - A quantitative investment firm, has recently increased its position to about 4.1%.
Investor Influence
These investors wield considerable influence over the company:
- Institutional investors often engage in dialogues with management regarding operational strategies and governance practices.
- Activist investors, if present, can push for changes that may include restructuring, enhancing shareholder value, or pursuing mergers and acquisitions.
Recent Moves
Recent notable moves include:
- On April 18, 2024, the Board authorized an increase in the stock repurchase program to $250 million, indicating confidence in the company's valuation.
- For the six months ended September 30, 2024, the company repurchased shares worth approximately $103.3 million, reducing outstanding shares and potentially increasing earnings per share.
- The acquisition of Appranix, Inc. for $26.3 million in cash and stock, supported by major investors, aims to enhance the company's product offerings in cyber resilience.
| Investor | Ownership Percentage | Recent Actions |
|---|---|---|
| BlackRock, Inc. | 10.5% | Increased stake in Q2 2024 |
| The Vanguard Group, Inc. | 8.2% | Maintained position |
| Wellington Management Company, LLP | 7.5% | Participated in strategy discussions |
| Renaissance Technologies LLC | 4.1% | Increased position in Q1 2024 |
As of September 30, 2024, the company reported a net income of $34.1 million, an increase from $25.6 million in the same period the previous year, reflecting the positive impact of strategic investments and operational changes.
Furthermore, the total revenue for the six months ended September 30, 2024, stood at $448.3 million, up from $389.5 million year-over-year, largely fueled by a 32% increase in subscription revenue.
Market Impact and Investor Sentiment of Commvault Systems, Inc. (CVLT)
Market Impact and Investor Sentiment
Investor Sentiment: As of 2024, the sentiment among major shareholders appears to be positive, driven by an increase in subscription revenues and strategic acquisitions. The stock has shown resilience amid market fluctuations, reflecting confidence from institutional investors.
Recent Market Reactions: Following the announcement of significant share repurchases and the acquisition of Appranix, the stock price exhibited a notable increase. For instance, during the three months ending September 30, 2024, the company repurchased approximately $103.3 million of common stock. This repurchase program, which has an authorization of $250 million, indicates strong management confidence in the stock's value.
| Period | Total Shares Purchased | Average Price Paid per Share | Approximate Dollar Value of Shares Available for Purchase |
|---|---|---|---|
| July 2024 | 87,699 | $125.27 | $194,108,000 |
| August 2024 | 141,253 | $148.34 | $173,155,000 |
| September 2024 | 133,763 | $149.25 | $153,191,000 |
| Total (Q3 2024) | 362,715 | $143.09 | N/A |
Analyst Perspectives: Analysts have responded positively to the company’s strategic moves, particularly the acquisition of Appranix for $26.3 million, which is expected to enhance product offerings in the growing cloud cyber resilience market. Analysts note that the substantial growth in subscription revenue, which increased 32% year-over-year, positions the company favorably against competitors.
Furthermore, the company's operating income for the six months ended September 30, 2024, was reported at $34.1 million, up from $25.6 million the previous year, indicating improved operational efficiency and profitability.
Overall, the combination of positive investor sentiment, strategic acquisitions, and strong financial performance has contributed to a favorable outlook among analysts and investors alike.
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Article updated on 8 Nov 2024
Resources:
- Commvault Systems, Inc. (CVLT) Financial Statements – Access the full quarterly financial statements for Q2 2025 to get an in-depth view of Commvault Systems, Inc. (CVLT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Commvault Systems, Inc. (CVLT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.