Key Points
- CEO George Kurian sold 40,000 NetApp shares at an average price of $191.42, generating approximately $7.7 million. He retained 318,537 shares following the transaction.
- NetApp reported strong quarterly results, with EPS of $2.58 beating estimates of $2.12 and revenue of $2.02 billion exceeding forecasts of $1.84 billion, up nearly 30% year over year.
- The company declared a quarterly dividend of $0.52 per share, or $2.08 annually, representing a yield of about 1.1%; analysts maintain a consensus “Hold” rating with an average price target of $193.86.
NetApp, Inc. (NASDAQ:NTAP - Get Free Report) Director Deepak Ahuja sold 3,526 shares of NetApp stock in a transaction that occurred on Monday, September 14th. The shares were sold at an average price of $194.04, for a total transaction of $684,185.04. Following the sale, the director owned 16,264 shares in the company, valued at approximately $3,155,866.56. The trade was a 17.82% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website.
NetApp Price Performance
NTAP stock opened at $191.49 on Thursday. The company has a debt-to-equity ratio of 1.30, a quick ratio of 1.16 and a current ratio of 1.24. The company's fifty day moving average price is $183.59 and its 200-day moving average price is $146.09. NetApp, Inc. has a one year low of $93.69 and a one year high of $209.06. The company has a market capitalization of $37.61 billion, a PE ratio of 27.01, a price-to-earnings-growth ratio of 2.04 and a beta of 1.44.
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, beating the consensus estimate 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 net margin of 19.18% and a return on equity of 119.13%. NetApp's quarterly revenue was up 29.9% on a year-over-year basis. During the same period last year, the company posted $1.15 earnings per share. 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 anticipate that NetApp, Inc. will post 8.32 EPS for the current fiscal year.
NetApp Announces Dividend
The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 28th. Stockholders of record on Friday, October 9th will be given a dividend of $0.52 per share. The ex-dividend date is Friday, October 9th. This represents a $2.08 dividend on an annualized basis and a dividend yield of 1.1%. NetApp's dividend payout ratio (DPR) is presently 29.34%.
Key Stories Impacting NetApp
Here are the key news stories impacting NetApp this week:
- Positive Sentiment: NetApp’s latest quarterly results showed substantial momentum: earnings per share of $2.58 exceeded the $2.12 consensus estimate, while revenue of approximately $2.02 billion surpassed expectations of $1.84 billion and increased nearly 30% year over year. The company also issued fiscal 2027 EPS guidance of $9.73 to $10.03.
- Positive Sentiment: An upbeat earnings-call outlook highlighted demand for AI-related infrastructure, cloud services and data management, reinforcing the investment case for NetApp’s growth.
- Positive Sentiment: NetApp announced a partnership with the Tampa Bay Buccaneers, expanding its NFL sponsorship presence and promoting its data, analytics and cloud capabilities. The deal is primarily a branding initiative but could improve visibility with enterprise customers. NetApp and Tampa Bay Buccaneers Partner to Enable Data-Driven Operational Excellence
- Positive Sentiment: Analyst sentiment remains constructive after the earnings report. Barclays raised its price target to $219 with an overweight rating, while Evercore set a $210 target. The broader consensus rating remains Hold, with an average target of $193.86.
- Positive Sentiment: The company declared a quarterly dividend of $0.52 per share, equivalent to $2.08 annually and a yield of about 1.1%, providing continued shareholder income.
- Neutral Sentiment: NetApp’s strong stock performance has lifted its valuation to roughly 27 times earnings. Shares remain above both their 50-day and 200-day moving averages, indicating strong momentum but also leaving less room for disappointment.
- Negative Sentiment: Several insiders sold shares, including CEO George Kurian, who sold 40,000 shares worth approximately $7.7 million, and Director Deepak Ahuja, who sold about $684,000. Additional executive and director sales were also reported. These transactions may create modest sentiment pressure, although the insiders retained significant holdings and the filings do not establish a bearish outlook.
Institutional Inflows and Outflows
Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. West Financial Advisors LLC bought a new position in shares of NetApp during the 2nd quarter valued at approximately $37,000. Roble Belko & Company Inc bought a new position in NetApp during the first quarter valued at $31,000. Elyxium Wealth LLC bought a new stake in shares of NetApp in the 4th quarter worth about $35,000. Bell Investment Advisors Inc purchased a new position in shares of NetApp during the 2nd quarter worth about $55,000. Finally, Compass Financial Management LLC bought a new position in NetApp during the 2nd quarter valued at about $70,000. Hedge funds and other institutional investors own 92.17% of the company's stock.
Wall Street Analyst Weigh In
NTAP has been the topic of a number of research analyst reports. Susquehanna boosted their target price on NetApp from $185.00 to $195.00 and gave the stock a "neutral" rating in a research report on Thursday, September 3rd. Wells Fargo & Company increased their price target on NetApp from $180.00 to $190.00 and gave the company an "equal weight" rating in a research note on Thursday, September 3rd. JPMorgan Chase & Co. raised their price target on NetApp from $110.00 to $150.00 and gave the company a "neutral" rating in a report on Friday, May 29th. Zacks Research raised NetApp from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, September 9th. Finally, Citigroup decreased their price objective on NetApp from $209.00 to $190.00 and set a "neutral" rating on the stock in a report on Thursday, September 3rd. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and ten have issued a Hold rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Hold" and an average price target of $193.86.
Read Our Latest Stock Analysis on NTAP
NetApp Company Profile
(
Get Free Report)
NetApp, Inc (NASDAQ: NTAP) is a data infrastructure and cloud storage company that helps organizations manage, protect and access data across on-premises environments, private clouds and public clouds. Its offerings are designed to support enterprise workloads such as databases, business applications, artificial intelligence and virtualized computing.
The company's portfolio includes all-flash and hybrid storage systems, cloud storage services, data management software and infrastructure-as-a-service solutions.
Further Reading
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