Why Commvault Systems Stock Vaulted More Than 10% Higher on Friday
Key Points
A media report stated that both private equity firms and strategic investors have expressed interest in owning the company.
Due to declines in software stocks generally, those apparent suitors obviously consider this one a bargain.
- 10 stocks we like better than Commvault Systems ›
Significant value was unlocked in Commvault Systems (NASDAQ: CVLT) stock on the final trading day of the week. Following a media report stating that its management is seriously considering a sale of the cybersecurity and data protection company, investors fell over themselves snapping up the stock. It ended Friday more than 10% higher in price.
Changing hands?
That morning, Reuters published an article stating that Commvault was mulling such a move after it drew takeover interest from several would-be suitors.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Image source: Getty Images.
Citing four unnamed "people familiar with the matter," the news agency added that the company has retained Goldman Sachs to help it sort through its options. The parties apparently interested in an acquisition include both private equity firms and potential strategic buyers. Among the former is Thoma Bravo, according to the article's sources.
Although cybersecurity stocks had a strong run with investors recently, they have since retreated amid worsening sentiment toward software companies. The segment is seen as vulnerable to disruption from artificial intelligence (AI).
Someone might be getting a sweet deal
While I think that's a valid concern, Commvault isn't showing any sign of shrinking in the face of AI. In fact, it has enthusiastically embraced the technology, making it prominent in its popular Commvault Cloud platform.
The company's latest fundamentals were impressive, as it recorded 21% year-over-year revenue growth and a 23% improvement in net income not under generally accepted accounting principles. Given that, I'd expect it to be sold for a premium if it ends up with a new owner. And if it doesn't, it's currently bargain-priced with good potential for appreciation.
Should you buy stock in Commvault Systems right now?
Before you buy stock in Commvault Systems, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Commvault Systems wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $550,348!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,127,467!*
Now, it’s worth noting Stock Advisor’s total average return is 959% — a market-crushing outperformance compared to 191% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of April 10, 2026.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group. The Motley Fool has a disclosure policy.
Recommended Articles
