NetApp, Inc. (NASDAQ:NTAP) is now being followed by Cowen, as they initiated the stock at Underperform on December 11. Analysts at Morgan Stanley, maintained the company shares at Equal-Weight on November 15 but switched target price from $70 to $72. Brokerage firm Maxim Group, looks cautious as they stick to prior recommendation of Buy, in a call on November 15. However, they did change the target price from $91 to $89.
NetApp, Inc. (NTAP) hit an intraday high Thursday at $61.52. The shares finished at $61.46, after trading as low as $59.69 earlier in the session. It rose 2.11% in recent trade and currently has a stock-market value of $15.72B. Trading activity significantly weakened as the volume at ready counter decreased to 2,796,312 shares versus 3,521,990 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 2,458,129 shares. The stock is now 18.19% above against its bear-market low of $52 on February 15, 2018. It has retreated -43.31% since it’s 52-week high of $88.08 reached in September. Now the market price is up 3% on the year and up 3% YTD.
NTAP’s 50 day simple moving average (SMA 50) price is $67.35 and its 200-day simple moving average (SMA 200) price is $74.17. The company’s stock currently has a total float of 251.42M shares. Its weekly volatility is hovering around 2.72% and felt 3.79% volatility in price over a month. On the upside, the share price will test short term resistance at around $62.09. On a downside, the stock is likely to find some support, which begins at $60.26. The failure to get near-term support could push it to $59.06.
Separately, it has been reported that multiple insider activity took place at NetApp, Inc. (NTAP). CEO Kurian George sold 10,000 shares for $2,044 in transaction occurred on 2018/11/20. After making this transaction, the CEO owns a direct stake of 666,600 shares, worth $125,624, as per the last closing price. On 2018/11/16 Richard Henri P, EVP, Go To Market at NTAP, dumped 2,525 shares at an average price of $69.55 per share. The selling total is valued at $3,795,585.
CEO, Kurian George had divested 6,000 shares for $12,044 through a trade on 2018/11/01. Following this activity, the insider holds 470,100 shares worth $740,224 as of recent close. Wall Street’s most bullish NetApp, Inc. (NASDAQ:NTAP) analysts are predicting the share price to blow past $100 per share during the next 12 months. The current median share price forecast by them is $89, suggesting that the stock could increase 44.81% in that time frame. The average price target of $84.95 calls for a nearly 38.22% increase in the stock price.
When looking at valuations, NetApp, Inc. (NTAP) has a cheap P/E of 14.67x as compared to industry average of 15.17x. Moreover, it trades for 12.26 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 10.36x price/book and 2.55x price/sales. Compared to others, NetApp, Inc. is in a different league with regards to profitability, having net margins of 4.7%. To put some perspective around this, the industry’s average net margin is 2.15%. NTAP’s ROE is 14.6%, which is also considerably better than the industry’s ROE of 10.41%. It’s also very liquid in the near term, with a current ratio of 1.7. The stock has a debt/capital of 1.17.
Shares of NetApp, Inc. (NTAP) have dropped -22.9% since the company’s Jul-19 earnings report. Over the past 12 fiscal quarters, NetApp, Inc. (NASDAQ:NTAP) has topped consensus earnings estimates in 10 quarters (83%), missed earnings in 1 quarters (8%), whereas at 1 occasion EPS met analyst expectations. NTAP last reported earnings on November 14, 2018 when it released Oct-18 results that exceeded expectations. The company raked in $1.06 per share, -84.81% change on the same period last year. That was better than consensus for $0.99. Revenue for the recent quarter stood at $1.52 billion, up 7% on last year and above the $1.51 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $1.47 billion to $1.59 billion, which should be compared with $1.44 billion generated last year. EPS is seen in a range of $0.85 to $1.22, against the $0.83 reported a year ago.