Is CommVault Systems, Inc. (NASDAQ:CVLT) a good stock to buy right now? We at Insider Monkey like to examine what billionaires and hedge funds think of a company before doing days of research on it. Given their 2 and 20 payment structure, hedge funds have more resources than the average investor. The funds have access to expert networks and get tips from industry insiders. They also have numerous Ivy League graduates and MBAs. Like everyone else, hedge funds perform miserably at times, but their consensus picks have historically outperformed the market after risk adjustments.
CommVault Systems, Inc. (NASDAQ:CVLT) shares haven’t seen a lot of action during the third quarter. Overall, hedge fund sentiment was unchanged. The stock was in 22 hedge funds’ portfolios at the end of September. At the end of this article we will also compare CVLT to other stocks including Chambers Street Properties (NYSE:CSG), Sanderson Farms, Inc. (NASDAQ:SAFM), and Acxiom Corporation (NASDAQ:ACXM) to get a better sense of its popularity.
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Keeping this in mind, let’s take a look at the key action encompassing CommVault Systems, Inc. (NASDAQ:CVLT).
What does the smart money think about CommVault Systems, Inc. (NASDAQ:CVLT)?
Of the funds tracked by Insider Monkey, Ken Griffin’s Citadel Investment Group has the number one position in CommVault Systems, Inc. (NASDAQ:CVLT), worth close to $51 million, corresponding to less than 0.1% of its total 13F portfolio. Coming in second is Jim Simons of Renaissance Technologies, with a $40.2 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Some other peers with similar optimism encompass Anand Parekh’s Alyeska Investment Group, John Brennan’s Sirios Capital Management and Clint Carlson’s Carlson Capital.
It’s worth mentioning that Seymour Sy Kaufman and Michael Stark’s Crosslink Capital said goodbye to the largest position of the “upper crust” of funds followed by Insider Monkey, totaling an estimated $25.8 million in stock, and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital was right behind this move, as the fund dumped about $3.2 million worth. These bearish behaviors are important to note, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).
Let’s go over hedge fund activity in other stocks similar to CommVault Systems, Inc. (NASDAQ:CVLT). We will take a look at Chambers Street Properties (NYSE:CSG), Sanderson Farms, Inc. (NASDAQ:SAFM), Acxiom Corporation (NASDAQ:ACXM), and Advanced Drainage Systems Inc (NYSE:WMS). This group of stocks’ market values are similar to CVLT’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| CSG | 20 | 128905 | 6 |
| SAFM | 18 | 270039 | -3 |
| ACXM | 17 | 252051 | 1 |
| WMS | 11 | 329857 | -2 |
As you can see these stocks had an average of 16.5 hedge funds with bullish positions and the average amount invested in these stocks was $245 million. That figure was $346 million in CVLT’s case. Chambers Street Properties (NYSE:CSG) is the most popular stock in this table. On the other hand Advanced Drainage Systems Inc (NYSE:WMS) is the least popular one with only 11 bullish hedge fund positions. Compared to these stocks CommVault Systems, Inc. (NASDAQ:CVLT) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.
