Zacks Investment Research Lowers NetApp (NTAP) to Hold
NetApp (NASDAQ:NTAP) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued 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.”
Other analysts have also issued research reports about the stock. DA Davidson increased their price target on shares of NetApp from $53.00 to $56.00 and gave the stock a “buy” rating in a research report on Tuesday, November 14th. Piper Jaffray Companies set a $52.00 price target on shares of NetApp and gave the stock a “buy” rating in a research report on Tuesday, November 14th. Maxim Group reiterated a “buy” rating and set a $56.00 price target on shares of NetApp in a research report on Friday, October 27th. ValuEngine upgraded shares of NetApp from a “hold” rating to a “buy” rating in a research report on Thursday, November 16th. Finally, UBS Group reiterated a “buy” rating and set a $52.00 price target (up previously from $45.00) on shares of NetApp in a research report on Thursday, November 16th. One investment analyst has rated the stock with a sell rating, fourteen have assigned a hold rating and seventeen have given a buy rating to the company. The company presently has an average 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 (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.91 by $0.08. NetApp had a negative net margin of 0.09% and a positive return on equity of 29.38%. The firm had revenue of $1.52 billion for the quarter, compared to analyst estimates of $1.49 billion. During the same quarter in the prior year, the business posted $0.82 EPS. sell-side analysts expect 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 firm’s stock in a transaction on Friday, December 1st. The shares were sold at an average price of $55.91, for a total transaction of $110,478.16. Following the completion of the transaction, the executive vice president now owns 11,884 shares of the company’s stock, valued at $664,434.44. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO George Kurian sold 7,020 shares of the firm’s stock in a transaction on Monday, February 5th. The shares were sold at an average price of $59.48, for a total transaction of $417,549.60. The disclosure for this sale can be found here. Insiders have sold 61,342 shares of company stock valued at $3,491,981 in the last ninety days. Insiders own 0.47% of the company’s stock.
Several hedge funds have recently added to or reduced their stakes in NTAP. First Personal Financial Services raised its stake in shares of NetApp by 27,540.0% during the third quarter. First Personal Financial Services now owns 2,764 shares of the data storage provider’s stock valued at $121,000 after acquiring an additional 2,754 shares during the last quarter. Quantbot Technologies LP bought a new position in shares of NetApp during the third quarter valued at $131,000. IFP Advisors Inc raised its stake in shares of NetApp by 45.3% during the fourth quarter. IFP Advisors Inc now owns 2,571 shares of the data storage provider’s stock valued at $142,000 after acquiring an additional 801 shares during the last quarter. Tower Research Capital LLC TRC raised its stake in shares of NetApp by 227.3% during the fourth quarter. Tower Research Capital LLC TRC now owns 3,286 shares of the data storage provider’s stock valued at $182,000 after acquiring an additional 2,282 shares during the last quarter. Finally, FTB Advisors Inc. raised its stake in shares of NetApp by 50.2% during the third quarter. FTB Advisors Inc. now owns 4,544 shares of the data storage provider’s stock valued at $199,000 after acquiring an additional 1,519 shares during the last quarter. 94.34% of the stock is owned by hedge funds and other institutional investors.
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NetApp Company Profile
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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