NetApp (NASDAQ:NTAP – Get Free Report) had its price target hoisted by analysts at Wedbush from $150.00 to $170.00 in a report issued on Thursday, Benzinga reports. The brokerage currently has a “neutral” rating on the data storage provider’s stock. Wedbush’s price target points to a potential downside of 5.96% from the stock’s previous close.
NTAP has been the topic of several other research reports. JPMorgan Chase & Co. boosted their price objective on NetApp from $110.00 to $150.00 and gave the stock a “neutral” rating in a research report on Friday, May 29th. Bank of America boosted their target price on shares of NetApp from $180.00 to $206.00 and gave the company a “neutral” rating in a research note on Monday. Morgan Stanley upgraded shares of NetApp from an “underweight” rating to an “equal weight” rating and raised their price target for the stock from $137.00 to $173.00 in a research note on Monday, August 10th. Citigroup upped their price objective on NetApp from $150.00 to $209.00 and gave the company a “neutral” rating in a research note on Tuesday, August 18th. Finally, Wells Fargo & Company set a $190.00 target price on NetApp in a research note on Thursday. Six analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $189.46.
Read Our Latest Research Report on NetApp
NetApp Stock Performance
NetApp (NASDAQ:NTAP – Get Free Report) last posted its earnings results on Wednesday, September 2nd. The data storage provider reported $2.58 earnings per share for the quarter, topping analysts’ consensus estimates of $2.12 by $0.46. NetApp had a net margin of 18.43% and a return on equity of 117.23%. The company had revenue of $2.02 billion for the quarter, compared to analyst estimates of $1.84 billion. During the same quarter in the prior year, the business posted $1.15 EPS. The firm’s revenue was up 29.9% compared to the same quarter last year. NetApp has set its FY 2027 guidance at 9.730-10.030 EPS and its Q2 2027 guidance at 2.540-2.640 EPS. On average, equities analysts forecast that NetApp will post 7.34 earnings per share for the current year.
Insiders Place Their Bets
In related news, EVP Elizabeth M. O’callahan sold 1,000 shares of NetApp stock in a transaction on Monday, August 10th. The stock was sold at an average price of $193.82, for a total transaction of $193,820.00. Following the completion of the sale, the executive vice president owned 30,297 shares of the company’s stock, valued at approximately $5,872,164.54. This trade represents a 3.20% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, President Cesar Cernuda sold 2,608 shares of the business’s stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $204.48, for a total value of $533,283.84. Following the transaction, the president owned 46,530 shares of the company’s stock, valued at approximately $9,514,454.40. The trade was a 5.31% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 55,072 shares of company stock worth $8,719,520 in the last quarter. 0.36% of the stock is currently owned by company insiders.
Hedge Funds Weigh In On NetApp
A number of large investors have recently modified their holdings of the company. West Financial Advisors LLC purchased a new stake in shares of NetApp in the 2nd quarter valued at $37,000. Park Square Financial Group LLC lifted its stake in NetApp by 68.7% in the fourth quarter. Park Square Financial Group LLC now owns 253 shares of the data storage provider’s stock worth $29,000 after purchasing an additional 103 shares during the last quarter. Gen Wealth Partners Inc bought a new stake in NetApp in the fourth quarter worth $30,000. DV Equities LLC purchased a new stake in NetApp during the fourth quarter valued at about $30,000. Finally, Measured Wealth Private Client Group LLC bought a new position in shares of NetApp during the third quarter valued at about $35,000. 92.17% of the stock is owned by hedge funds and other institutional investors.
NetApp News Summary
Here are the key news stories impacting NetApp this week:
- Positive Sentiment: NetApp reported fiscal first-quarter revenue of approximately $2.03 billion, up 30% year over year, and adjusted EPS of $2.58, well above the roughly $2.12 analyst consensus. All-flash array revenue increased 47%, reflecting strong demand tied to artificial intelligence and hybrid-cloud infrastructure. NetApp Stock Tanks Despite Strong Q1 Earnings Print
- Positive Sentiment: The company raised its fiscal 2027 outlook to approximately $8.0 billion-$8.2 billion in revenue and $9.73-$10.03 in EPS. Second-quarter guidance also exceeded Wall Street expectations, signaling continued demand and strong near-term operating momentum.
- Positive Sentiment: Susquehanna raised its price target for NTAP from $185 to $195, implying additional potential upside, although the firm maintained a neutral rating.
- Positive Sentiment: NetApp and Amazon Web Services expanded their relationship: AWS Transform now supports migrations to Amazon FSx for NetApp ONTAP, potentially making NetApp’s storage platform more attractive to enterprise customers. NetApp and AWS Accelerate Storage Migrations with AWS Transform
- Neutral Sentiment: NetApp declared a quarterly dividend of $0.52 per share, equivalent to an annualized yield of about 1.2%. The payment supports shareholder returns but is unlikely to drive the immediate trading move.
- Negative Sentiment: Free cash flow declined to about $401 million, while operating cash flow was approximately $503 million and inventory increased. Investors appear concerned that earnings growth is not converting into cash as efficiently as before. NetApp Sails Past Estimates but Tumbles on Free Cash Flow Decline
- Negative Sentiment: Adjusted gross margin fell to 70.6%, with sequential product-margin pressure attributed to higher component costs and product mix. The deterioration raised concerns about profitability and execution despite the higher outlook.
- Negative Sentiment: With the stock near a 12-month high and valuation expectations elevated, traders appeared to “sell the news” after the results. Reports also noted that company insiders have recorded sales, but no open-market purchases, during the past six months.
NetApp Company Profile
NetApp, Inc (NASDAQ: NTAP) is a data management and storage company that delivers hybrid cloud data services for applications and data. Founded in 1992 as Network Appliance and rebranded as NetApp in 2008, the company is headquartered in Sunnyvale, California. NetApp’s offering focuses on enabling organizations to store, manage, protect and move data across on-premises environments and major public clouds.
The company’s product portfolio centers on the ONTAP data management software and a range of storage systems and services built around it.
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