NetApp (NASDAQ:NTAP) Shares Gap Up Following Dividend Announcement

Key Points

• NetApp shares gapped up after the company announced a quarterly dividend of $0.52 per share, payable on July 29, with the stock opening far above its previous close. The dividend implies a 1.1% annual yield and a 34.78% payout ratio.
• Recent earnings were mixed but revenue was strong: NetApp reported fiscal Q4 EPS of $2.03, below estimates, while revenue came in at $1.95 billion, above expectations and up 12.5% year over year. The company also raised FY 2027 guidance, signaling confidence in future growth.
• Analyst sentiment remains cautious, with a consensus rating of “Hold” and an average price target of $140.33. Several firms recently adjusted targets upward, but some kept underweight or hold views due to valuation and margin concerns.

NetApp, Inc. (NASDAQ:NTAP - Get Free Report) gapped up prior to trading on Friday after the company announced a dividend. The stock had previously closed at $142.40, but opened at $176.69. NetApp shares last traded at $190.6280, with a volume of 2,074,862 shares. The newly announced dividend which will be paid on Wednesday, July 29th. Stockholders of record on Friday, July 10th will be paid a $0.52 dividend. This represents a $2.08 annualized dividend and a dividend yield of 1.1%. The ex-dividend date is Friday, July 10th. NetApp's dividend payout ratio (DPR) is presently 34.78%.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently commented on the company. Morgan Stanley upped their target price on NetApp from $88.00 to $137.00 and gave the company an "underweight" rating in a research report on Friday. Wedbush lifted their price target on NetApp from $115.00 to $150.00 and gave the company a "neutral" rating in a research note on Friday. JPMorgan Chase & Co. downgraded NetApp from an "overweight" rating to a "neutral" rating and lowered their price target for the stock from $125.00 to $110.00 in a research report on Thursday, April 16th. Citigroup downgraded NetApp from a "neutral" rating to a "mixed" rating in a research note on Thursday, May 14th. Finally, Weiss Ratings cut shares of NetApp from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Friday, March 13th. Five equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, NetApp has an average rating of "Hold" and a consensus price target of $140.33.

NetApp Price Performance

The firm has a 50 day moving average price of $110.99 and a two-hundred day moving average price of $107.48. The company has a market cap of $37.80 billion, a P/E ratio of 32.05, a P/E/G ratio of 2.60 and a beta of 1.28. The company has a debt-to-equity ratio of 2.15, a quick ratio of 1.36 and a current ratio of 1.39.

NetApp (NASDAQ:NTAP - Get Free Report) last announced its quarterly earnings data on Thursday, May 28th. The data storage provider reported $2.03 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $2.27 by ($0.24). The firm had revenue of $1.95 billion during the quarter, compared to the consensus estimate of $1.87 billion. NetApp had a net margin of 18.07% and a return on equity of 118.11%. The company's revenue was up 12.5% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.93 earnings per share. NetApp has set its FY 2027 guidance at 8.700-9.000 EPS and its Q1 2027 guidance at 2.050-2.150 EPS. On average, analysts predict that NetApp, Inc. will post 6.48 EPS for the current fiscal year.

Key NetApp News

Here are the key news stories impacting NetApp this week:

• Positive Sentiment: NetApp reported fiscal Q4 revenue of $1.95 billion, up 12.5% year over year and above Wall Street estimates, showing continued demand for its data storage products. NetApp (NTAP) Q4 Earnings and Revenues Top Estimates
• Positive Sentiment: Management raised first-quarter and full-year FY 2027 guidance above consensus, signaling confidence in growth and execution going forward. Wamsi Mohan Reiterates Hold on NetApp, Lifts Price Target to $150 Amid Strong Execution but Valuation and Margin Headwinds
• Positive Sentiment: NetApp announced a new $1 billion share repurchase program and a quarterly dividend, both of which can support shareholder returns. NetApp Announces New $1 Billion Share Repurchase Program
• Neutral Sentiment: Analysts remain split: Bank of America raised its target to $150 but kept a Hold rating, while Morgan Stanley lifted its target to $137 but maintained an Underweight view, suggesting valuation concerns remain. Benzinga analyst update on NetApp price target
• Negative Sentiment: NetApp’s Q4 EPS of $2.03 missed expectations, and some coverage notes margin and valuation headwinds, which may limit upside if investors focus on profitability rather than sales growth. NetApp (NTAP) Stock Falls on Q4 2026 Earnings

Insider Activity at NetApp

In other NetApp news, CAO Lorenzo Daniel De sold 275 shares of the business's stock in a transaction on Monday, May 18th. The shares were sold at an average price of $120.00, for a total transaction of $33,000.00. Following the sale, the chief accounting officer owned 1,090 shares of the company's stock, valued at $130,800. The trade was a 20.15% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP Elizabeth M. O'callahan sold 1,000 shares of the stock in a transaction on Monday, May 11th. The stock was sold at an average price of $117.73, for a total value of $117,730.00. Following the sale, the executive vice president owned 18,382 shares in the company, valued at approximately $2,164,112.86. This represents a 5.16% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 3,275 shares of company stock valued at $347,650. 0.28% of the stock is owned by insiders.

Institutional Trading of NetApp

A number of hedge funds and other institutional investors have recently made changes to their positions in NTAP. Jefferies Financial Group Inc. bought a new stake in NetApp during the fourth quarter worth about $14,869,000. Envestnet Asset Management Inc. increased its position in shares of NetApp by 4.9% during the 3rd quarter. Envestnet Asset Management Inc. now owns 432,772 shares of the data storage provider's stock valued at $51,266,000 after purchasing an additional 20,089 shares during the last quarter. Citigroup Inc. raised its holdings in shares of NetApp by 216.1% during the 3rd quarter. Citigroup Inc. now owns 927,525 shares of the data storage provider's stock valued at $109,875,000 after buying an additional 634,085 shares in the last quarter. National Pension Service raised its holdings in shares of NetApp by 26.0% during the 3rd quarter. National Pension Service now owns 159,274 shares of the data storage provider's stock valued at $18,868,000 after buying an additional 32,833 shares in the last quarter. Finally, Handelsbanken Fonder AB lifted its position in NetApp by 106.8% in the 4th quarter. Handelsbanken Fonder AB now owns 262,732 shares of the data storage provider's stock worth $28,136,000 after buying an additional 135,715 shares during the last quarter. 92.17% of the stock is currently owned by institutional investors.

NetApp Company Profile

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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