Commvault Systems Inc. (NASDAQ:CVLT) President and CEO Sanjay Mirchandani recently made a series of stock transactions involving the sale and acquisition of company shares, according to a new SEC filing. The transactions included the sale of shares amounting to over $5 million.
Mirchandani sold a total of 38,310 shares of Commvault Systems stock in transactions dated May 16 and May 17, 2024. The sales were executed at prices ranging from $110.20 to $111.04. The total amount realized from these sales was approximately $5,097,969. Notably, part of these sales was to satisfy tax withholding obligations upon the vesting of restricted stock, as indicated in the footnotes of the filing.
In addition to the sales, Mirchandani also acquired a significant number of shares through various grants. On May 15 and May 16, he was awarded a total of 126,868 shares as restricted stock units and performance share units (PSUs) with zero cost reported. These grants are part of a long-term incentive plan and are subject to vesting schedules tied to the company's performance and shareholder return benchmarks relative to the Russell 3000 index.
The footnotes of the SEC filing provide additional context to the awarded shares, explaining that some of the common stock was granted with a three-year vesting schedule. A portion of the PSUs will vest based on the company's total shareholder return, while others are tied to financial performance metrics related to revenue.
After these transactions, Mirchandani's direct ownership in the company stands at 522,312 shares. The recent sales and grants are part of the executive's compensation and ownership strategy in the company and provide insights into the executive's stake in the company's future.
Investors and followers of Commvault Systems may find this information useful as they assess the company's performance and executive alignment with shareholder interests.
InvestingPro Insights
As investors evaluate the recent stock transactions by Commvault Systems Inc. (NASDAQ:CVLT) President and CEO Sanjay Mirchandani, it's beneficial to consider the company's financial health and market performance. According to InvestingPro, Commvault boasts an impressive gross profit margin of 81.93% for the last twelve months as of Q4 2024, underscoring the company's efficiency in managing its cost of goods sold relative to its revenue which stood at $839.25 million for the same period.
The company's commitment to creating shareholder value is also reflected in their aggressive share buyback strategy, as noted in one of the InvestingPro Tips. This aligns with the CEO's recent stock transactions and suggests a management belief in the intrinsic value of the company. Additionally, Commvault's financial stability is highlighted by its position of holding more cash than debt on its balance sheet, providing a cushion for operations and potential investments.
InvestingPro Data shows that Commvault has a market capitalization of $4.83 billion and trades at a Price/Earnings (P/E) ratio of 28.92, which adjusts to 27.87 when looking at the last twelve months as of Q4 2024. Despite trading at high valuation multiples, such as a Price/Book of 17.28, the company has demonstrated strong returns, with a one-year price total return of 69.94% and trading near its 52-week high at 98.12% of the peak price.
For investors seeking more in-depth analysis, there are 19 additional InvestingPro Tips available for Commvault Systems, which can be accessed with an InvestingPro subscription. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing an even deeper dive into the company's performance metrics and market standing.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.