NetApp (NASDAQ:NTAP) Trading Down 4.7% - Here's Why

Key Points

• NetApp's stock price fell 4.7% to $114.63, with a notable decline in trading volume, down 71% from average levels.
• Analysts have mixed views on the stock, with recent price targets set between $108.00 and $130.00 and a consensus rating of "Hold."
• NetApp's latest quarterly earnings showed a missed EPS estimate at $1.19 compared to expectations of $1.54, although it reported revenue of $1.56 billion, above forecasts.

NetApp, Inc. (NASDAQ:NTAP - Get Free Report)'s stock price dropped 4.7% during trading on Friday . The company traded as low as $113.95 and last traded at $114.63. Approximately 594,086 shares were traded during trading, a decline of 71% from the average daily volume of 2,046,410 shares. The stock had previously closed at $120.31.

Analysts Set New Price Targets

Several equities research analysts have issued reports on the stock. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of NetApp in a research note on Wednesday. UBS Group raised their target price on shares of NetApp from $108.00 to $114.00 and gave the stock a "neutral" rating in a research report on Thursday, August 28th. Barclays raised their target price on shares of NetApp from $117.00 to $125.00 and gave the stock an "overweight" rating in a research report on Thursday, August 28th. Argus restated a "buy" rating and set a $130.00 price objective on shares of NetApp in a report on Friday, August 29th. Finally, Bank of America raised their price objective on NetApp from $121.00 to $125.00 and gave the stock a "neutral" rating in a report on Monday, August 25th. Seven analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus target price of $124.07.

NetApp Stock Down 5.2%

The firm has a market capitalization of $22.77 billion, a price-to-earnings ratio of 20.03, a price-to-earnings-growth ratio of 2.65 and a beta of 1.45. The company has a current ratio of 1.31, a quick ratio of 1.28 and a debt-to-equity ratio of 2.55. The firm has a 50 day moving average price of $115.55 and a two-hundred day moving average price of $103.42.

NetApp (NASDAQ:NTAP - Get Free Report) last issued its quarterly earnings data on Wednesday, August 27th. The data storage provider reported $1.19 EPS for the quarter, missing analysts' consensus estimates of $1.54 by ($0.35). The company had revenue of $1.56 billion for the quarter, compared to analyst estimates of $1.54 billion. NetApp had a return on equity of 123.24% and a net margin of 17.77%.The company's revenue for the quarter was up 1.2% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.56 EPS. NetApp has set its FY 2026 guidance at 7.600-7.900 EPS. Q2 2026 guidance at 1.840-1.940 EPS. On average, equities analysts expect that NetApp, Inc. will post 5.89 earnings per share for the current fiscal year.

NetApp Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, October 22nd. Investors of record on Friday, October 3rd will be given a dividend of $0.52 per share. The ex-dividend date of this dividend is Friday, October 3rd. This represents a $2.08 annualized dividend and a yield of 1.8%. NetApp's payout ratio is 36.75%.

Insider Transactions at NetApp

In other news, CAO Lorenzo Daniel De sold 779 shares of the business's stock in a transaction on Thursday, September 25th. The shares were sold at an average price of $121.87, for a total transaction of $94,936.73. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO George Kurian sold 8,750 shares of the business's stock in a transaction on Wednesday, September 17th. The stock was sold at an average price of $122.91, for a total transaction of $1,075,462.50. Following the completion of the transaction, the chief executive officer owned 274,938 shares in the company, valued at $33,792,629.58. This represents a 3.08% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 28,529 shares of company stock valued at $3,243,874. Corporate insiders own 0.28% of the company's stock.

Institutional Investors Weigh In On NetApp

Large investors have recently added to or reduced their stakes in the stock. Manchester Capital Management LLC grew its holdings in NetApp by 375.0% during the first quarter. Manchester Capital Management LLC now owns 285 shares of the data storage provider's stock worth $25,000 after acquiring an additional 225 shares during the period. 1248 Management LLC bought a new position in shares of NetApp during the 1st quarter valued at $25,000. Harbour Investments Inc. raised its stake in shares of NetApp by 287.9% in the 2nd quarter. Harbour Investments Inc. now owns 256 shares of the data storage provider's stock valued at $27,000 after acquiring an additional 190 shares in the last quarter. Harbor Asset Planning Inc. bought a new stake in NetApp during the second quarter valued at about $28,000. Finally, Olde Wealth Management LLC bought a new stake in NetApp during the 1st quarter valued at approximately $29,000. 92.17% of the stock is owned by institutional investors and hedge funds.

NetApp Company Profile

NetApp, Inc provides cloud-led and data-centric services to manage and share data on-premises, and private and public clouds worldwide. It operates in two segments, Hybrid Cloud and Public Could. The company offers intelligent data management software, such as NetApp ONTAP, NetApp Snapshot, NetApp SnapCenter Backup Management, NetApp SnapMirror Data Replication, NetApp SnapLock Data Compliance, and storage infrastructure solutions, including NetApp All-Flash FAS series, NetApp Fabric Attached Storage, NetApp E/EF series, and NetApp StorageGRID.

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