Commvault Systems Inc. (NASDAQ:CVLT) Chief Financial Officer Merrill Gary recently sold a significant portion of his company shares, according to a new SEC filing. The transactions, which occurred on May 20 and 21, 2024, involved the sale of company common stock totaling over $935,000.
The sales were executed in multiple transactions with prices ranging from $109.76 to $110.79 per share. On May 20, Gary sold 2,805 shares at $110.64, 1,652 shares with a weighted average price of $110.39, and 1,234 shares at $110.79. The following day, he continued selling with 626 shares at $109.76, 1,040 shares at $110.69, and 1,111 shares at $110.39.
These sales were made alongside an acquisition of 1,178 shares, which were issued in connection with the company's total shareholder return for fiscal year 2024, meeting specified benchmarks relative to the Russell 3000 index.
The filing also noted that some of the sales were automatic and intended solely to satisfy tax withholding obligations upon the vesting of restricted stock, with proceeds submitted to the Internal Revenue Service.
Investors often monitor insider transactions as they can provide insights into executives' perspectives on the company's future prospects. The recent sales by Commvault's CFO may be of particular interest to current and potential shareholders.
For those interested in the detailed prices for each share sold, the reporting person has offered to provide full information upon request to the staff of the Securities and Exchange Commission, the issuer, or a security holder of the issuer.
InvestingPro Insights
As Commvault Systems Inc. (NASDAQ:CVLT) experiences insider transactions, it's crucial for investors to consider various financial metrics and management activities that could influence the company's stock performance. According to recent data from InvestingPro, Commvault holds a market capitalization of approximately $4.78 billion USD, indicating a substantial presence in its sector. The company's P/E ratio stands at 28.61, with a slight adjustment to 27.87 when looking at the last twelve months as of Q4 2024. This valuation multiple can help investors gauge if the stock is over or undervalued compared to earnings.
InvestingPro Tips reveal that management has been actively repurchasing shares, a sign that could be interpreted as confidence in the company's value and future prospects. Additionally, Commvault boasts a robust gross profit margin of 81.93% in the last twelve months as of Q4 2024, highlighting its efficiency in controlling costs relative to revenue.
Investors may also find it reassuring that Commvault has more cash than debt on its balance sheet, suggesting a strong liquidity position that could support future growth or provide a buffer in challenging economic times. These insights, alongside 18 additional InvestingPro Tips, are available for those seeking a deeper analysis of Commvault's financial health and potential investment opportunities. Interested readers can explore these tips further by visiting https://www.investing.com/pro/CVLT and use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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