Commvault Systems (CVLT) has disclosed a new risk, in the Debt & Financing category.
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Hedging activity by counterparties to Commvault Systems’ Capped Calls may introduce additional volatility into the trading price of its common stock. As these banks or their affiliates establish, adjust, or unwind hedges in the company’s stock or related derivatives, buying and selling pressure can move the share price in either direction. Such activity may occur at sensitive times, including during conversion observation periods or around redemption and unwind events. This could in turn affect the amount of conversion consideration received by noteholders and influence the market value of the Notes themselves.
Overall, Wall Street has a Strong Buy consensus rating on CVLT stock based on 11 Buys and 2 Holds.
To learn more about Commvault Systems’ risk factors, click here.