Is CommVault Systems, Inc. (CVLT) A Good Stock To Buy?

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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.

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