Insider Transaction: Leigh Jennifer DiRico Sells $102K Worth Of CommVault Systems Shares

It was reported on November 20, that Leigh Jennifer DiRico, Chief Financial Officer at CommVault Systems (NASDAQ:CVLT) executed a significant insider sell, according to an SEC filing.

What Happened: DiRico's recent move involves selling 830 shares of CommVault Systems. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value is $102,571.

Monitoring the market, CommVault Systems's shares down by 0.0% at $117.69 during Friday's morning.

Delving into CommVault Systems's Background

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.

Understanding the Numbers: CommVault Systems's Finances

Positive Revenue Trend: Examining CommVault Systems's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 18.39% as of 30 September, 2025, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Information Technology sector.

Exploring Profitability:

• Gross Margin: The company maintains a high gross margin of 80.07%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): CommVault Systems's EPS reflects a decline, falling below the industry average with a current EPS of 0.33.

Debt Management: CommVault Systems's debt-to-equity ratio surpasses industry norms, standing at 4.32. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Understanding Financial Valuation:

• Price to Earnings (P/E) Ratio: CommVault Systems's stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 66.85.

• Price to Sales (P/S) Ratio: With a P/S ratio of 4.86 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an impressive EV/EBITDA ratio of 51.51, CommVault Systems demonstrates exemplary market valuation, surpassing industry averages.

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

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Illuminating the Importance of Insider Transactions

Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.

In the context of 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 outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

Deciphering Transaction Codes in Insider Filings

Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes 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.