Trade-Ideas LLC identified

CommVault Systems

(

CVLT

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified CommVault Systems as such a stock due to the following factors:

  • CVLT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $29.7 million.
  • CVLT has traded 445,092 shares today.
  • CVLT is trading at 35.35 times the normal volume for the stock at this time of day.
  • CVLT is trading at a new high 20.02% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on CVLT:

TheStreet Recommends

CommVault Systems, Inc., together with its subsidiaries, provides data and information management software applications and related services primarily in North America, Europe, Australia, and Asia. CVLT has a PE ratio of 69. Currently there are 7 analysts that rate CommVault Systems a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for CommVault Systems has been 404,300 shares per day over the past 30 days. CommVault Systems has a market cap of $1.4 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.48 and a short float of 6.2% with 3.33 days to cover. Shares are down 20.3% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates CommVault Systems as a

hold

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:

  • CVLT has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, CVLT has a quick ratio of 2.00, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 16.5%. Since the same quarter one year prior, revenues slightly dropped by 6.9%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The gross profit margin for COMMVAULT SYSTEMS INC is currently very high, coming in at 85.40%. Regardless of CVLT's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CVLT's net profit margin of -6.56% significantly underperformed when compared to the industry average.
  • Net operating cash flow has significantly decreased to $9.57 million or 70.25% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Software industry and the overall market, COMMVAULT SYSTEMS INC's return on equity significantly trails that of both the industry average and the S&P 500.

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