NetApp (NASDAQ:NTAP) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Wednesday.
According to Zacks, “NetApp is a provider of enterprise storage and data management software and hardware products and services. The company reported stellar third quarter earnings and revenues on the back of strong product adoption. The company’s expertise in the flash array market is increasing its prominence in the storage area network (SAN) and converged infrastructure markets. The company’s newly launched hyper-converged infrastructure (HCI) is also expected to be a positive for the top-line growth in the long run. We believe NetApp is well positioned to enjoy steady growth driven by its diversified portfolio and strong distribution channels. These will drive demand for the company's products going forward. Shares of the company have outperformed the industry in the past one year. However, intensifying competition from bellwethers such as HP Inc., Dell, IBM and Oracle is a major headwind.”
A number of other brokerages have also weighed in on NTAP. ValuEngine raised shares of NetApp from a “hold” rating to a “buy” rating in a research note on Thursday, November 16th. DA Davidson lowered shares of NetApp from a “buy” rating to a “neutral” rating and upped their target price for the stock from $56.00 to $64.00 in a research note on Tuesday, January 23rd. BMO Capital Markets raised shares of NetApp from a “market perform” rating to an “outperform” rating and upped their target price for the stock from $43.00 to $62.00 in a research note on Thursday, November 16th. Loop Capital raised shares of NetApp from a “hold” rating to a “buy” rating and set a $50.00 target price for the company in a research note on Tuesday, February 13th. Finally, Wells Fargo & Co reaffirmed a “market perform” rating and issued a $50.00 target price on shares of NetApp in a research note on Tuesday, November 14th. One research analyst has rated the stock with a sell rating, fourteen have issued a hold rating and seventeen have assigned a buy rating to the stock. NetApp has a consensus rating of “Buy” and an average target price of $56.23.
NetApp (NASDAQ:NTAP) last announced its earnings results on Wednesday, February 14th. The data storage provider reported $0.99 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.91 by $0.08. The firm had revenue of $1.52 billion during the quarter, compared to analyst estimates of $1.49 billion. NetApp had a negative net margin of 0.09% and a positive return on equity of 29.38%. During the same period in the prior year, the business earned $0.82 EPS. analysts predict that NetApp will post 2.91 earnings per share for the current year.
In other news, EVP Henri P. Richard sold 1,976 shares of the company’s stock in a transaction dated Friday, December 1st. The shares were sold at an average price of $55.91, for a total value of $110,478.16. Following the sale, the executive vice president now directly owns 11,884 shares of the company’s stock, valued at approximately $664,434.44. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, Director Thomas Michael Nevens sold 20,000 shares of the company’s stock in a transaction dated Tuesday, January 2nd. The shares were sold at an average price of $55.67, for a total transaction of $1,113,400.00. Following the completion of the sale, the director now directly owns 17,000 shares in the company, valued at $946,390. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 61,342 shares of company stock worth $3,491,981. 0.47% of the stock is owned by insiders.
Several hedge funds have recently modified their holdings of NTAP. Boston Partners bought a new stake in shares of NetApp in the 3rd quarter valued at about $315,629,000. Investec Asset Management LTD acquired a new position in NetApp in the 4th quarter valued at about $290,829,000. Bank of New York Mellon Corp grew its stake in NetApp by 25.2% in the 3rd quarter. Bank of New York Mellon Corp now owns 4,061,906 shares of the data storage provider’s stock valued at $177,748,000 after buying an additional 817,147 shares during the last quarter. Shellback Capital LP acquired a new position in NetApp in the 4th quarter valued at about $36,817,000. Finally, APG Asset Management N.V. grew its stake in NetApp by 22.9% in the 3rd quarter. APG Asset Management N.V. now owns 3,046,414 shares of the data storage provider’s stock valued at $133,311,000 after buying an additional 567,300 shares during the last quarter. 94.34% of the stock is currently owned by institutional investors.
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NetApp, Inc (NetApp) provides software, systems and services to manage and store customer data. The Company enables enterprises, service providers, governmental organizations, and partners to envision, deploy and evolve their information technology (IT) environments. The Company offers a portfolio of products and services that satisfy a range of customer workloads across different data types and deployment models.
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