NetApp Inc. (NASDAQ: NTAP): Analyst View Points To Future Growth


    Capital Research & Management Co.. has recently announced that it has increased stake in NetApp Inc. (NASDAQ:NTAP) by 3.62%. After grabbing 26.86 million shares, the institutional investor is now in possession of 0.94 million shares of the Technology Company. The new investment brought the stake of investor firm to 12.11% having worth around $1.19 billion. Moreover, Columbia Management Investment Ad.. increased its share by 0.17 million to have a control over 5.16 million shares. And Mellon Investments Corp. raised its holdings to 44704.0 shares by acquiring 4.64 million shares or 2.09% of the stake.

    NetApp Inc. (NTAP) concluded trading on 08/26/20 at a closing price of $42.21, with 6.44 million shares of worth about $271.73 million changed hands on the day. Weekly performance of the stock remained positive as price took a surge of 1.74% during that period and on Wednesday the price saw a gain of about 1.05%. Currently the company’s common shares owned by public are about 221.93M shares, out of which, 221.16M shares are available for trading.

    A deeper look into what the analysts at Wall Street are thinking about the price target of this stock provides us with the following: 28 analysts are covering the NTAP stock and their offered price forecasts bring an average price target of $47.60. Over the next 12 months, analysts forecasted that the stock’s price could jump as high as $60.00 and could fall to a lowest price of $34.00. Analysts also issued an outlook of 2.90 for the NetApp Inc. stock for next 12 months. The stock’s current price level is 10.82% above of average price target set by the analysts, while a rise to estimated low would result in loss of -24.15 for the stock. However, touching the estimated high of $60.00 would mean a gain of 29.65% for the stock.

    According to filings with the U.S. Securities and Exchange Commission (SEC), insiders took part in trade of the company’s stock for 79 times over the past 12 months. They bought 413,911 shares in 46 of the transactions. In 33 selling transactions, insiders dumped 177,353 shares.

    Vanguard PRIMECAP Fund, Vanguard Total Stock Market Index, and Vanguard Mid Cap Index Fund are the top 3 mutual funds which are holding stakes in NetApp Inc. Vanguard PRIMECAP Fund is currently holding 12.65 million shares of worth totaling $560.39 million. The company recently came buying 0.0 shares which brought its stake up to 5.70% of the company’s outstanding shares. Vanguard Total Stock Market Index sold 33053.0 shares, after which its hold over company’s outstanding shares shrunk to 2.83%, leaving 6.28 million shares with the mutual fund that have a worth of about $278.14 million. Vanguard Mid Cap Index Fund, after selling 5.42 million shares, have now control over 2.45% of the stake in the company. It holds 44134.0 shares of worth $240.31 million.

    NetApp Inc. (NASDAQ: NTAP) started trading at $41.95, above $0.18 from concluding price of the previous day. However, the stock finished the trading on the day at a closing price of $42.21, or with a gain of 1.05%. Stock saw a price change of 1.74% in past 5 days and over the past one month there was a price change of -1.72%. Year-to-date (YTD), NTAP shares are showing a performance of -32.19% which decreased to -9.25% when we look at its performance for past 12 months. Over the period of past 52 weeks, stock dropped to lowest price of $34.66 but also hit the highest price of $65.38 during that period. While comparing its average daily trading volume of 2.84 million shares, we see that about 6.44 million changed hands on the day. The stock is currently trading -0.52% below its 20-day simple moving average (SMA20), while that difference is down -2.21% for SMA50 and it goes to -13.94% lower than SMA200.

    Capital Research & Management Co.. acquired 26.86 million shares of NetApp Inc. having value of about $1.19 billion. Data submitted at the U.S SEC by Capital Research & Management Co.. revealed that the firm now holds 0.94 million shares in the company valued at close to $39647177.64, or have control over 3.62% stake in the company. NetApp Inc. (NASDAQ: NTAP) currently have 221.93M outstanding shares and institutions hold larger chunk of about 98.99% of that. Holding of mutual funds in the company is about 6.13% while other institutional holders and individual stake holders have control over 67.23% and 28.40% of the stake respectively.

    The stock has a current market capitalization of $9.41B and its 3Y-monthly beta is at 1.29. PE ratio of stock for trailing 12 months is 11.93, while it has posted earnings per share of $3.54 in the same period. Its PEG reads 3.57 and has Quick Ratio of 1.10 while making debt-to-equity ratio of 6.89. Volatility of a stock is a metric used to know how much the price of that stock is under influence and for NTAP, volatility over the week remained 2.88% while standing at 3.26% over the month.

    Analysts are in expectations that NetApp Inc. (NTAP) stock would likely to be making an EPS of $0.77 in the current quarter, while forecast for next quarter ESPS is $0.95 and it is $4.02 for next year. For the current quarter EPS, analysts have given the company a lowest target $0.55 which is $0.94 at the higher side of the target for the same. When we compare those targets with actual EPS, we find that company posted an EPS of $1.09 in the same quarter a year ago. Stock’s fiscal year EPS is expected to drop by -22.10% while it is estimated to increase by 22.55% in next year. EPS is likely to shrink at an annualized rate of 3.34% for next 5-years, compared to annual growth of 15.00% made by the stock over the past 5-years.

    Analysts at 28 brokerage firms have issued recommendations for the NetApp Inc. (NTAP)’s stock and average of those rates the stock at a “Moderate Buy” and assign it a score of 2.90. Out of those 28 Wall Street analysts, 6 recommended a “Buy” rating, while 19 were in favor recommending the stock as a “Hold” and 3 analyst recommended the stock as “Sell”.

    Digging deeper we find that several firms have released their research notes about the support levels of the stock. Most recent of them is a note released by JP Morgan on August 25, 2020 offering an Overweight rating for the stock and assigned a target price range of between $50 and $45 to it. Coverage by BofA/Merrill stated NetApp Inc. (NTAP) stock as a Buy in their note to investors on June 26, 2020, suggesting a price target of $55 for the stock. On June 18, 2020, Deutsche Bank Initiated their recommendations, while on May 28, 2020, Susquehanna Reiterated their ratings for the stock with a price target of $60. Stock get an Underweight rating from Morgan Stanley on May 28, 2020.


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