Capital Research & Management Co.. recently announced the acquisition of new stake in NetApp Inc. (NASDAQ:NTAP). The institutional investor has increased its shareholding in the Technology company by 3.62% to 26.86 million shares with purchase of 0.94 million shares. This fresh investment now brings its stake to 12.11% valued currently at $1.19 billion. In addition, Columbia Management Investment Ad.. raised its holdings by 0.17 million to 5.16 million shares. And Mellon Investments Corp. has lifted its position by 0.97% or 44704.0 shares – to 4.64 million shares.
With over 3.16 million NetApp Inc. (NTAP) shares trading Tuesday and a closing price of $46.68 on the day, the dollar volume was approximately $147.74 million. The shares have shown a positive weekly performance of 11.75% and its price on 09/01/20 lost nearly -1.50%. Currently, there are 221.00M common shares owned by the public and among those 220.35M shares have been available to trade.
An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 28 analysts who have offered their price forecasts for NTAP have a consensus price objective of $49.70. The analysts have set the share’s price value over the next 12 months at a high of $60.00 and a low of $36.00 should the stock experience a downside. Incidentally, analysts’ outlook for the NetApp Inc. stock is 2.90 for the next 12 months. The average price target is 5.14% above its last price level and an upside to the estimated low will see the stock lose -29.67% over that period. But an upside of 22.2% will see the stock hit the forecast high price target while mean target price for the stock is $50.00.
Insiders at the company have transacted a total of 79 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 46 of these insider trades were purchases, accounting for 413,911 shares. Insider sales of the common stock occurred on 33 occasions, with total insider shares sold totaling 177,353 shares.
The top 3 mutual fund holders in NetApp Inc. are Vanguard PRIMECAP Fund, Vanguard Total Stock Market Index, and Vanguard Mid Cap Index Fund. Vanguard PRIMECAP Fund owns 12.65 million shares of the company’s stock, all valued at over $560.39 million. Vanguard Total Stock Market Index sold 33053.0 shares to see its total holdings shrink to 6.28 million shares valued at over $278.14 million and representing 2.83% of the shares outstanding. Vanguard Mid Cap Index Fund sold 44134.0 shares to bring its total holdings to over 5.42 million shares at a value of $240.31 million. Vanguard Mid Cap Index Fund now owns shares totaling to 2.45% of the shares outstanding.
Shares of NetApp Inc. (NASDAQ: NTAP) opened at $47.26, down -$0.13 from a prior closing price of $47.39. However, the script later closed the day at $46.68, down -1.50%. The company’s stock has a 5-day price change of 11.75% and 2.17% over the past three months. NTAP shares are trading -25.01% year to date (YTD), with the 12-month market performance down to -1.54% lower. It has a 12-month low price of $34.66 and touched a high of $65.38 over the same period. Currently, 3.16 million shares have been traded, compared to an average intraday trading volume of 3.08 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 9.12%, 7.91%, and -4.24% respectively.
Institutional ownership of NetApp Inc. (NASDAQ: NTAP) shares accounts for 98.99% of the company’s 221.00M shares outstanding. Mutual fund holders own 6.13%, while other institutional holders and individual stakeholders account for 67.24% and 28.40% respectively.
It has a market capitalization of $9.95B and a beta (3y monthly) value of 1.27. The stock’s trailing 12-month PE ratio is 13.48, while the earnings-per-share (ttm) stands at $3.46. The company has a PEG of 3.45 and a Quick Ratio of 1.10 with the debt-to-equity ratio at 6.89. Price movements for the stock have been influenced by the stock’s volatility, which stands at 4.56% over the week and 3.34% over the month.
Analysts forecast that NetApp Inc. (NTAP) will achieve an EPS of $0.72 for the current quarter, $0.89 for the next quarter and $4.01 for 2022. The lowest estimate earnings-per-share for the quarter is $0.7 while analysts give the company a high EPS estimate of $0.77. Comparatively, EPS for the current quarter was $1.09 a year ago. Earnings per share for the fiscal year are expected to decrease by -22.10%, and 17.94% over the next financial year. EPS should shrink at an annualized rate of 3.91% over the next five years, compared to 15.00% over the past 5-year period.
If you are looking to buy this stock, then you may note that the average analyst recommendation by 28 brokerage firm advisors rate NetApp Inc. (NTAP) as a “Moderate Buy” at a consensus score of 2.90. Specifically, 6 Wall Street analysts polled rate the stock as a buy, while 19 of the 28 advise that investors “hold,” and 3 rated it as a “Sell.”
Looking at the support for the NTAP, a number of firms have released research notes about the stock. Wells Fargo stated their Equal Weight rating for the stock in a research note on August 27, 2020, with the firm’s price target at $46-$52. Northland Capital coverage for the NetApp Inc. (NTAP) stock in a research note released on August 27, 2020 offered a Outperform rating with a price target of $57. Morgan Stanley was of a view on August 27, 2020 that the stock is Underweight, while Deutsche Bank gave the stock Hold rating on August 27, 2020, issuing a price target of $43- $45. Credit Suisse on their part issued Outperform rating on August 27, 2020.