Activist investor Starboard has accumilated 9.3% stake in Commvault

Starboard Value, the prominent activist investor, has accumulated a 9.3 per cent stake in Commvault. In a regulatory filing it stated that it felt the shares were undervalued when it purchased them.

Commvault was formed in 1988 as a development group within Bell Labs, and later designated as a strategic business unit of AT&T Network Systems.  Commvault is an overall Leader in the Ovum Decision Matrix for Software-based Data Protection and Availability & Protection Solutions

Commvault has responded to Starboard’s stake building: “Commvault’s top priorities, at this time, are the health and safety of our employees, taking care of customers, and operating our business. As always, Commvault embraces open dialogue with our shareholder community and will continue to act in their best interest.”

Despite Commvault’s stock dropping by 14% since January, it is still holding up better than many other companies that have seen their shares battered by panic selling sparked by fears over the spreading coronavirus. In the last five days, the stock price surged nearly 25%.

Starboard is known for investing in deeply undervalued companies and actively engages with management teams and boards of directors to identify and execute on opportunities to unlock value for the benefit of all shareholders.

Starboard Key Numbers:

– (34.8%), (20.5%), (12.7%): CVLT’s 1-, 3- and 5-year return, versus 1%, 30.3% and 53% for the S&P 500.

– 23.92%: Starboard’s average return on the 98 13D filings it has made in its history (versus 9.02% for the S&P 500 during the same time periods).

– 35.32%: Starboard’s average return on the 40 13D filings it has made on technology companies in its history (versus 13.69% for the S&P-500 during the same time periods).

CMVLT Market Summary: