Northland Securities Raises Earnings Estimates for NetApp

Key Points

• Northland Securities raised its NetApp earnings estimates, including FY2027 EPS to $8.14 and FY2028 EPS to $9.15. The firm maintained an Outperform rating and a $187 price target.
• NetApp’s latest quarterly results exceeded expectations, with EPS of $2.58 versus the $2.12 consensus and revenue of $2.02 billion versus $1.84 billion expected. Revenue increased 29.9% year over year.
• Analyst sentiment remains mixed, with six Buy ratings and ten Holds producing a consensus rating of Hold and an average price target of $192.07. NetApp also declared a quarterly dividend of $0.52 per share, representing a 1.1% yield.

NetApp, Inc. (NASDAQ:NTAP - Free Report) - Stock analysts at Northland Securities increased their Q2 2027 earnings estimates for NetApp in a research report issued to clients and investors on Thursday, September 3rd. Northland Securities analyst N. Chokshi now anticipates that the data storage provider will post earnings per share of $2.09 for the quarter, up from their previous estimate of $1.70. Northland Securities currently has a "Outperform" rating and a $187.00 target price on the stock. The consensus estimate for NetApp's current full-year earnings is $8.25 per share. Northland Securities also issued estimates for NetApp's Q3 2027 earnings at $1.75 EPS, Q4 2027 earnings at $2.10 EPS, FY2027 earnings at $8.14 EPS, Q1 2028 earnings at $2.45 EPS, Q2 2028 earnings at $2.35 EPS, Q3 2028 earnings at $1.91 EPS, Q4 2028 earnings at $2.44 EPS and FY2028 earnings at $9.15 EPS.

NetApp (NASDAQ:NTAP - Get Free Report) last issued its quarterly earnings data on Wednesday, September 2nd. The data storage provider reported $2.58 earnings per share for the quarter, topping the consensus estimate of $2.12 by $0.46. The company had revenue of $2.02 billion for 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 revenue for the quarter was up 29.9% on a year-over-year basis. During the same quarter in the previous year, the firm 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.

NTAP has been the subject of several other research reports. Bank of America increased their price target on NetApp from $180.00 to $206.00 and gave the company a "neutral" rating in a research note on Monday, August 31st. Citigroup cut their price objective on NetApp from $209.00 to $190.00 and set a "neutral" rating on the stock in a research note on Thursday, September 3rd. UBS Group upped their target price on NetApp from $160.00 to $171.00 and gave the company a "neutral" rating in a report on Thursday, September 3rd. JPMorgan Chase & Co. increased their target price on shares of NetApp from $110.00 to $150.00 and gave the company a "neutral" rating in a research report on Friday, May 29th. Finally, Wells Fargo & Company raised their price target on shares of NetApp from $180.00 to $190.00 and gave the stock an "equal weight" rating in a report on Thursday, September 3rd. Six investment analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company's stock. According to data from MarketBeat.com, NetApp presently has an average rating of "Hold" and a consensus target price of $192.07.

NetApp Stock Down 2.3%

Shares of NTAP opened at $184.74 on Thursday. The company has a market capitalization of $36.29 billion, a PE ratio of 26.06, a PEG ratio of 2.05 and a beta of 1.44. NetApp has a 12 month low of $93.69 and a 12 month high of $209.06. The stock's 50-day moving average price is $180.60 and its two-hundred day moving average price is $142.93. The company has a current ratio of 1.24, a quick ratio of 1.16 and a debt-to-equity ratio of 1.30.

NetApp Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 28th. Investors 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 annualized dividend and a dividend yield of 1.1%. NetApp's dividend payout ratio is presently 29.34%.

Insider Activity

In other NetApp news, EVP Elizabeth M. O'callahan sold 1,000 shares of the business's stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $193.82, for a total value of $193,820.00. Following the transaction, the executive vice president directly owned 30,297 shares of the company's stock, valued at approximately $5,872,164.54. The trade was a 3.20% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, President Cesar Cernuda sold 2,608 shares of the stock in a transaction that occurred on 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 in the company, valued at $9,514,454.40. The trade was a 5.31% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 54,072 shares of company stock worth $8,556,040. 0.36% of the stock is owned by corporate insiders.

Institutional Trading of NetApp

Several hedge funds have recently modified their holdings of NTAP. Park Square Financial Group LLC boosted its stake in NetApp by 68.7% during the fourth quarter. Park Square Financial Group LLC now owns 253 shares of the data storage provider's stock worth $29,000 after acquiring an additional 103 shares in the last quarter. Gen Wealth Partners Inc bought a new stake in NetApp in the fourth quarter valued at $30,000. DV Equities LLC acquired a new position in shares of NetApp during the fourth quarter valued at about $30,000. Roble Belko & Company Inc acquired a new position in shares of NetApp during the first quarter valued at about $31,000. Finally, Elyxium Wealth LLC bought a new position in shares of NetApp during the 4th quarter worth about $35,000. Institutional investors own 92.17% of the company's stock.

Trending Headlines about NetApp

Here are the key news stories impacting NetApp this week:

• Positive Sentiment: Northland Securities raised its earnings outlook. The firm increased its FY2027 EPS forecast to $8.14 from $7.11 and its FY2028 forecast to $9.15 from $7.85. It also lifted estimates for Q2 2027 to $2.09 from $1.70, Q3 2027 to $1.75 from $1.70, and Q4 2027 to $2.10 from $2.02. Northland maintained an Outperform rating and a $187 price target, signaling confidence in NetApp’s earnings growth.
• Positive Sentiment: Longer-term quarterly estimates imply continued profitability. Northland projects EPS of $2.45 in Q1 2028, $2.35 in Q2, $1.91 in Q3 and $2.44 in Q4, supporting expectations for sustained demand for NetApp’s data-storage products and AI-related infrastructure.
• Positive Sentiment: NetApp was highlighted as a sales-growth stock. Zacks included the company among stocks with sustainable sales growth, strong cash flow and favorable profitability and valuation screens, which may reinforce investor interest. Zacks sales growth stocks article
• Neutral Sentiment: Citi reiterated a Hold rating and $190 target. Analyst Asiya Merchant cited a robust AI-driven growth outlook but said the valuation appears fairly priced, limiting the immediate upside implied by the company’s growth prospects. TipRanks NetApp analyst rating article

About NetApp

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.

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