Baird Financial Group Inc. Buys New Holdings in NetApp, Inc. $NTAP

Key Points

• Baird Financial Group purchased 19,695 NetApp shares worth approximately $3.05 million during the second quarter. Institutional investors collectively own 92.17% of the company.
• NetApp reported strong quarterly results, with EPS of $2.58 and revenue of $2.02 billion, beating analyst estimates and representing nearly 30% year-over-year revenue growth. The company issued fiscal 2027 EPS guidance of $9.73 to $10.03.
• Analysts maintain a generally neutral outlook, with a consensus “Hold” rating and average price target of $193.86. NetApp also declared a quarterly dividend of $0.52 per share, while recent insider share sales could weigh modestly on sentiment.

Baird Financial Group Inc. purchased a new position in NetApp, Inc. (NASDAQ:NTAP - Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 19,695 shares of the data storage provider's stock, valued at approximately $3,048,000.

A number of other hedge funds have also recently added to or reduced their stakes in the company. BlackRock Inc. acquired a new position in shares of NetApp during the second quarter worth approximately $2,925,168,000. Primecap Management Co. CA acquired a new position in shares of NetApp during the second quarter valued at about $1,395,423,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its position in shares of NetApp by 9.4% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 4,444,057 shares of the data storage provider's stock worth $687,762,000 after acquiring an additional 383,701 shares in the last quarter. Norges Bank bought a new stake in shares of NetApp during the fourth quarter worth about $458,060,000. Finally, First Trust Advisors LP raised its holdings in shares of NetApp by 127.0% in the 1st quarter. First Trust Advisors LP now owns 3,658,066 shares of the data storage provider's stock worth $374,549,000 after acquiring an additional 2,046,912 shares during the last quarter. Institutional investors and hedge funds own 92.17% of the company's stock.

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on NTAP. Argus set a $225.00 price target on shares of NetApp in a research report on Friday, September 11th. UBS Group increased their price objective on NetApp from $160.00 to $171.00 and gave the stock a "neutral" rating in a research note on Thursday, September 3rd. Citigroup dropped their target price on NetApp from $209.00 to $190.00 and set a "neutral" rating on the stock in a report on Thursday, September 3rd. Susquehanna lifted their target price on NetApp from $185.00 to $195.00 and gave the company a "neutral" rating in a research report on Thursday, September 3rd. Finally, JPMorgan Chase & Co. upped their price target on NetApp from $110.00 to $150.00 and gave the stock a "neutral" rating in a report on Friday, May 29th. One equities research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and ten have issued a Hold rating to the company's stock. According to data from MarketBeat.com, NetApp currently has an average rating of "Hold" and an average price target of $193.86.

Trending Headlines about 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.

NetApp Stock Performance

Shares of NetApp stock opened at $191.49 on Thursday. The business's fifty day simple moving average is $183.59 and its 200 day simple moving average is $146.09. 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, Inc. has a 12 month low of $93.69 and a 12 month high of $209.06. The firm has a market capitalization of $37.61 billion, a P/E 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 announced its earnings results on Wednesday, September 2nd. The data storage provider reported $2.58 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.12 by $0.46. The firm had revenue of $2.02 billion during the quarter, compared to analyst estimates of $1.84 billion. NetApp had a return on equity of 119.13% and a net margin of 19.18%.The business's revenue was up 29.9% compared to the same quarter last year. During the same period last year, the firm posted $1.15 EPS. 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 anticipate that NetApp, Inc. will post 8.32 EPS for the current year.

NetApp Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 28th. Investors of record on Friday, October 9th will be issued a dividend of $0.52 per share. This represents a $2.08 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date is Friday, October 9th. NetApp's dividend payout ratio (DPR) is 29.34%.

Insiders Place Their Bets

In other news, EVP Elizabeth M. O'callahan sold 1,000 shares of the firm's stock in a transaction that occurred on Thursday, September 10th. The shares were sold at an average price of $184.74, for a total transaction of $184,740.00. Following the completion of the sale, the executive vice president owned 30,737 shares in the company, valued at $5,678,353.38. This trade represents a 3.15% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Deepak Ahuja sold 3,526 shares of NetApp stock in a transaction that occurred on Monday, September 14th. The stock was sold at an average price of $194.04, for a total transaction of $684,185.04. Following the completion of the sale, the director directly owned 16,264 shares in the company, valued at $3,155,866.56. This trade represents a 17.82% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 104,538 shares of company stock valued at $18,241,313. Company insiders own 0.36% of the company's stock.

NetApp Company Profile

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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