NetApp (NASDAQ:NTAP – Get Free Report) had its price objective raised by equities research analysts at Morgan Stanley from $173.00 to $191.00 in a research note issued to investors on Thursday, Benzinga reports. The brokerage presently has an “equal weight” rating on the data storage provider’s stock. Morgan Stanley’s price objective would suggest a potential upside of 4.49% from the stock’s current price.
Several other equities research analysts have also weighed in on the stock. Wedbush increased their target price on shares of NetApp from $150.00 to $170.00 and gave the stock a “neutral” rating in a report on Thursday. Wall Street Zen cut shares of NetApp from a “strong-buy” rating to a “buy” rating in a research report on Wednesday, July 29th. Northland Securities lifted their target price on NetApp from $137.00 to $171.00 and gave the stock an “outperform” rating in a report on Friday, May 29th. UBS Group restated a “neutral” rating and issued a $171.00 price target on shares of NetApp in a report on Thursday. Finally, Weiss Ratings raised NetApp from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Monday, June 8th. Five analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $191.69.
View Our Latest Stock Report on NetApp
NetApp Trading Up 1.1%
NetApp (NASDAQ:NTAP – Get Free Report) last announced its quarterly earnings results on Wednesday, September 2nd. The data storage provider reported $2.58 EPS for the quarter, beating analysts’ consensus estimates of $2.12 by $0.46. The company had revenue of $2.02 billion during the quarter, compared to analysts’ expectations of $1.84 billion. NetApp had a return on equity of 117.23% and a net margin of 18.43%.During the same period in the prior year, the business posted $1.15 EPS. NetApp’s revenue was up 29.9% on a year-over-year basis. NetApp has set its FY 2027 guidance at 9.730-10.030 EPS and its Q2 2027 guidance at 2.540-2.640 EPS. As a group, analysts forecast that NetApp will post 7.34 earnings per share for the current fiscal year.
Insider Activity
In related news, President Cesar Cernuda sold 49,464 shares of the stock in a transaction that occurred on Tuesday, June 23rd. The stock was sold at an average price of $154.82, for a total transaction of $7,658,016.48. Following the completion of the transaction, the president directly owned 46,806 shares of the company’s stock, valued at approximately $7,246,504.92. This represents a 51.38% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Elizabeth M. O’callahan sold 1,000 shares of the firm’s stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $193.82, for a total value of $193,820.00. Following the completion of the transaction, the executive vice president owned 30,297 shares of the company’s stock, valued at approximately $5,872,164.54. This represents a 3.20% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 55,072 shares of company stock valued at $8,719,520 in the last 90 days. 0.36% of the stock is owned by corporate insiders.
Hedge Funds Weigh In On NetApp
Hedge funds and other institutional investors have recently made changes to their positions in the company. Range Advisory LLC increased its holdings in NetApp by 87.9% during the second quarter. Range Advisory LLC now owns 3,795 shares of the data storage provider’s stock worth $587,000 after buying an additional 1,775 shares during the last quarter. HighTower Advisors LLC grew its position in shares of NetApp by 0.5% in the 2nd quarter. HighTower Advisors LLC now owns 43,335 shares of the data storage provider’s stock valued at $6,706,000 after acquiring an additional 212 shares during the period. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new position in shares of NetApp in the 2nd quarter valued at about $1,300,000. California State Teachers Retirement System increased its stake in shares of NetApp by 15,681.5% during the 2nd quarter. California State Teachers Retirement System now owns 48,620,175 shares of the data storage provider’s stock worth $7,524,458,000 after purchasing an additional 48,312,092 shares during the last quarter. Finally, Greenland Capital Management LP bought a new stake in shares of NetApp in the 2nd quarter valued at about $947,000. 92.17% of the stock is owned by institutional investors.
Key Headlines Impacting NetApp
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.
About NetApp
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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