NetApp (NASDAQ:NTAP) Stock Price Down 7.3% - What's Next?

Key Points

• NetApp shares fell 7.3% to about $96.29 on Tuesday (intraday low ~$97.53) on sharply lighter volume—≈464,817 shares, roughly 78% below the average session volume.
• The company posted an earnings beat (EPS $2.05 vs. $1.88; revenue $1.71B vs. $1.69B), provided FY2026 EPS guidance of 7.75–8.05, and analysts hold a consensus “Moderate Buy” with an average price target of $124.33, signaling potential upside from current levels.
• NetApp pays a $0.52 quarterly dividend (about a 2.2% yield) and has seen modest insider selling recently, while institutional investors own roughly 92% of the stock.

NetApp, Inc. (NASDAQ:NTAP - Get Free Report)'s share price fell 7.3% during trading on Tuesday . The company traded as low as $97.53 and last traded at $96.2860. 464,817 shares traded hands during mid-day trading, a decline of 78% from the average session volume of 2,070,587 shares. The stock had previously closed at $103.84.

Analyst Ratings Changes

Several research firms have issued reports on NTAP. Citigroup lowered their price target on shares of NetApp from $130.00 to $125.00 and set a "neutral" rating for the company in a report on Wednesday, November 12th. The Goldman Sachs Group initiated coverage on shares of NetApp in a research note on Tuesday, January 13th. They set a "buy" rating and a $128.00 target price for the company. Weiss Ratings reiterated a "hold (c+)" rating on shares of NetApp in a report on Wednesday, October 8th. Wells Fargo & Company lifted their price objective on NetApp from $100.00 to $115.00 and gave the stock a "positive" rating in a research report on Wednesday, November 26th. Finally, Bank of America raised their target price on NetApp from $125.00 to $129.00 and gave the stock a "neutral" rating in a research note on Wednesday, November 26th. One equities research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and ten have given a Hold rating to the stock. Based on data from MarketBeat, NetApp has a consensus rating of "Moderate Buy" and an average price target of $124.33.

NetApp Stock Performance

The company has a market cap of $18.63 billion, a PE ratio of 16.35, a PEG ratio of 2.29 and a beta of 1.38. The company has a 50-day moving average of $110.04 and a 200-day moving average of $112.41. The company has a quick ratio of 1.30, a current ratio of 1.34 and a debt-to-equity ratio of 2.52.

NetApp (NASDAQ:NTAP - Get Free Report) last posted its quarterly earnings data on Tuesday, November 25th. The data storage provider reported $2.05 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.88 by $0.17. NetApp had a net margin of 17.73% and a return on equity of 121.28%. The firm had revenue of $1.71 billion for the quarter, compared to the consensus estimate of $1.69 billion. During the same period in the previous year, the firm earned $1.87 EPS. The business's revenue for the quarter was up 2.8% compared to the same quarter last year. NetApp has set its FY 2026 guidance at 7.750-8.050 EPS and its Q3 2026 guidance at 2.010-2.110 EPS. As a group, analysts anticipate that NetApp, Inc. will post 5.89 earnings per share for the current year.

NetApp Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, January 21st. Shareholders of record on Friday, January 2nd will be given a $0.52 dividend. The ex-dividend date of this dividend is Friday, January 2nd. This represents a $2.08 annualized dividend and a yield of 2.2%. NetApp's payout ratio is currently 36.17%.

Insider Buying and Selling at NetApp

In related news, CAO Lorenzo Daniel De sold 327 shares of the firm's stock in a transaction dated Monday, November 17th. The shares were sold at an average price of $107.48, for a total transaction of $35,145.96. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Elizabeth M. O'callahan sold 1,000 shares of the business's stock in a transaction dated Monday, January 12th. The shares were sold at an average price of $105.49, for a total transaction of $105,490.00. Following the completion of the transaction, the executive vice president owned 21,075 shares in the company, valued at approximately $2,223,201.75. The trade was a 4.53% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 1,654 shares of company stock valued at $175,782. Insiders own 0.28% of the company's stock.

Institutional Investors Weigh In On NetApp

A number of hedge funds have recently modified their holdings of the stock. Geneos Wealth Management Inc. boosted its position in NetApp by 38.3% during the first quarter. Geneos Wealth Management Inc. now owns 759 shares of the data storage provider's stock worth $67,000 after purchasing an additional 210 shares during the period. Sivia Capital Partners LLC bought a new position in NetApp in the 2nd quarter worth approximately $315,000. Swedbank AB grew its stake in NetApp by 58.5% in the 2nd quarter. Swedbank AB now owns 80,444 shares of the data storage provider's stock valued at $8,571,000 after buying an additional 29,695 shares in the last quarter. Wealth Enhancement Advisory Services LLC raised its holdings in NetApp by 17.9% during the 2nd quarter. Wealth Enhancement Advisory Services LLC now owns 61,243 shares of the data storage provider's stock valued at $6,569,000 after acquiring an additional 9,293 shares during the period. Finally, IFM Investors Pty Ltd lifted its position in shares of NetApp by 4.8% during the second quarter. IFM Investors Pty Ltd now owns 52,632 shares of the data storage provider's stock worth $5,608,000 after acquiring an additional 2,387 shares in the last quarter. Institutional investors own 92.17% of the company's stock.

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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