CommVault Systems, Inc. (NASDAQ: CVLT) has been trading higher all day on the Goldman Sachs analyst upgrade to ‘Buy’ this morning.  The gains are large and we are seeing some options trading as a result. The actual share volume is active considering this company itself, but is still far short of what we would call extremely active in buyout speculation trading.
Joe Kunkle over at OptionsHawk.com this morning noted that calls are trading 5,068 versus average volume of 774 already today with implied volatility increasing 11.7% to 48%, and with shares at just $22.70 there are buyers at the offer of December $25 and $30 calls. My best explanation for this is that with NetApp (NTAP) reporting earnings on 11/18/09 after the close we could see our next big Tech M&A deal with CommVault (CVLT), a small niche player with huge growth potential, the Company NetApp could acquire. There is also some bullish action in NetApp with a buyer of 2,000 November $32 calls earlier this morning, so this action adds up to a potential deal on the horizon.
Anything is possible in technology M&A and the company is in data and information management software applications and related services. It is in the sweet spot of the sector. But insiders also sold over $1 million worth of stock last week as a sale window opened up. While Dell Inc. (NASDAQ: DELL) and NetApp, Inc. (NASDAQ: NTAP) we have also heard of other likely suitors that are possible but were not rumor-mill buyers.
At 12:40 PM EST we have shares up 5.7% at $22.54 on over 386,000 shares. Average volume is only 342,000 shares, so any interest here is probably something all relative. This $22.92 intraday high was also a new 52-week high.
JON C. OGG
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