NetApp, Inc. $NTAP Shares Bought by Morningstar Investment Management LLC

Key Points

• Morningstar Investment Management LLC increased its NetApp stake by 138.1% in the first quarter, ending with 12,455 shares valued at about $1.275 million.
• NetApp’s latest earnings were mixed: revenue rose 12.5% year over year to $1.95 billion and topped expectations, but EPS of $2.03 missed the consensus estimate of $2.27.
• Analyst sentiment remains cautious overall despite several target price increases, with a consensus rating of “Hold” and an average price target of $169.33.

Morningstar Investment Management LLC lifted its position in shares of NetApp, Inc. (NASDAQ:NTAP - Free Report) by 138.1% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 12,455 shares of the data storage provider's stock after buying an additional 7,225 shares during the quarter. Morningstar Investment Management LLC's holdings in NetApp were worth $1,275,000 at the end of the most recent quarter.

A number of other institutional investors have also modified their holdings of NTAP. Park Square Financial Group LLC grew its stake in NetApp by 68.7% in the 4th 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 during the period. Gen Wealth Partners Inc purchased a new position in shares of NetApp during the 4th quarter worth $30,000. DV Equities LLC acquired a new stake in shares of NetApp during the fourth quarter worth $30,000. Measured Wealth Private Client Group LLC acquired a new stake in shares of NetApp during the third quarter worth $35,000. Finally, Roble Belko & Company Inc purchased a new stake in shares of NetApp in the first quarter valued at $31,000. Institutional investors and hedge funds own 92.17% of the company's stock.

NetApp Stock Up 1.9%

Shares of NASDAQ:NTAP opened at $167.74 on Friday. The company has a debt-to-equity ratio of 1.84, a quick ratio of 1.39 and a current ratio of 1.44. NetApp, Inc. has a 1 year low of $93.69 and a 1 year high of $192.83. The stock has a market capitalization of $32.92 billion, a P/E ratio of 26.37, a PEG ratio of 3.06 and a beta of 1.46. The stock has a 50-day simple moving average of $157.95 and a 200-day simple moving average of $122.54.

NetApp (NASDAQ:NTAP - Get Free Report) last posted its quarterly earnings results on Thursday, May 28th. The data storage provider reported $2.03 EPS for the quarter, missing the consensus estimate of $2.27 by ($0.24). The business had revenue of $1.95 billion during the quarter, compared to analysts' expectations of $1.87 billion. NetApp had a net margin of 18.43% and a return on equity of 117.23%. The company's quarterly revenue was up 12.5% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.93 EPS. NetApp has set its FY 2027 guidance at 8.700-9.000 EPS and its Q1 2027 guidance at 2.050-2.150 EPS. Equities analysts forecast that NetApp, Inc. will post 7.16 earnings per share for the current year.

NetApp Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, July 29th. Investors of record on Friday, July 10th will be given a dividend of $0.52 per share. This represents a $2.08 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date of this dividend is Friday, July 10th. NetApp's dividend payout ratio is 32.70%.

Insider Buying and Selling

In other news, President Cesar Cernuda sold 49,464 shares of the company's stock in a transaction dated Tuesday, June 23rd. The stock was sold at an average price of $154.82, for a total value of $7,658,016.48. Following the completion of the sale, the president owned 46,806 shares of the company's stock, valued at $7,246,504.92. This represents a 51.38% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CAO Lorenzo Daniel De sold 225 shares of the stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $171.09, for a total value of $38,495.25. Following the completion of the sale, the chief accounting officer owned 1,090 shares of the company's stock, valued at approximately $186,488.10. This trade represents a 17.11% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders sold 52,964 shares of company stock valued at $8,181,642. Company insiders own 0.28% of the company's stock.

Analyst Ratings Changes

NTAP has been the subject of several recent analyst reports. Morgan Stanley lifted their price target on NetApp from $88.00 to $137.00 and gave the company an "underweight" rating in a report on Friday, May 29th. JPMorgan Chase & Co. boosted their target price on shares of NetApp from $110.00 to $150.00 and gave the company a "neutral" rating in a report on Friday, May 29th. Northland Securities upped their price target on shares of NetApp from $137.00 to $171.00 and gave the stock an "outperform" rating in a research report on Friday, May 29th. Weiss Ratings raised shares of NetApp from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Monday, June 8th. Finally, UBS Group reissued a "neutral" rating and set a $160.00 price objective on shares of NetApp in a research note on Friday, May 29th. Five analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, NetApp currently has a consensus rating of "Hold" and an average target price of $169.33.

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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