Chief Financial Officer Of CommVault Systems Makes $1.99M Sale

Leigh Jennifer DiRico, Chief Financial Officer at CommVault Systems (NASDAQ:CVLT), reported an insider sell on August 20, according to a new SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday outlined that DiRico executed a sale of 11,151 shares of CommVault Systems with a total value of $1,985,212.

At Thursday morning, CommVault Systems shares are down by 1.12%, trading at $174.39.

Unveiling the Story Behind CommVault Systems

CommVault Systems Inc provides data and information management software applications and services. The firm sells software licenses and services to large global enterprises, small- and midsize businesses, and government agencies through both its salesforce and its network of reseller partners. Its software solutions include Cleanroom Recovery, HyperScale X, Air Gap Protect, Compliance, Cloud Rewind, and Clumio Backtrack. The company operates in the United States and exports to many other countries.

A Deep Dive into CommVault Systems's Financials

Revenue Growth: CommVault Systems's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2025, the company achieved a revenue growth rate of approximately 25.51%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.

Interpreting Earnings Metrics:

• Gross Margin: The company excels with a remarkable gross margin of 81.99%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): CommVault Systems's EPS is below the industry average. The company faced challenges with a current EPS of 0.53. This suggests a potential decline in earnings.

Debt Management: CommVault Systems's debt-to-equity ratio is below the industry average at 0.08, reflecting a lower dependency on debt financing and a more conservative financial approach.

Financial Valuation Breakdown:

• Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 98.53, CommVault Systems's stock is perceived as being overvalued in the market.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 7.58, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): CommVault Systems's EV/EBITDA ratio stands at 76.77, surpassing industry benchmarks. This places the company in a position with a higher-than-average market valuation.

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

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The Importance of Insider Transactions

Considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

A Deep Dive into Insider Transaction Codes

When it comes to transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S indicates a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of CommVault Systems's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.