Zacks Investment Research downgraded shares of NetApp (NASDAQ:NTAP) from a buy rating to a hold rating in a report released on Wednesday morning.
According to Zacks, “NetApp is a provider of enterprise storage and data management software and hardware products and services. The company’s expertise in the flash array market is increasing its prominence in the storage area network (SAN) and converged infrastructure markets. Shares of the company have outperformed the industry in the past one year. 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. However, the company has been experiencing declining OEM revenues since two straight fiscals. Moreover, intensifying competition from bellwethers such as HP Inc., Dell, IBM and Oracle is a major headwind.”
NTAP has been the topic of a number of other research reports. Maxim Group boosted their price objective on shares of NetApp from $56.00 to $61.00 and gave the company a buy rating in a research report on Thursday, November 16th. Piper Jaffray Companies set a $52.00 price objective on shares of NetApp and gave the company a buy rating in a research report on Tuesday, November 14th. Barclays upgraded shares of NetApp from an underweight rating to an overweight rating and boosted their price objective for the company from $38.00 to $52.00 in a research report on Thursday, November 9th. Royal Bank of Canada boosted their price objective on shares of NetApp from $45.00 to $50.00 and gave the company a sector perform rating in a research report on Monday, November 13th. Finally, Wells Fargo & Co reiterated a market perform rating and set a $50.00 price objective on shares of NetApp in a research report on Tuesday, November 14th. One analyst has rated the stock with a sell rating, twenty-one have given a hold rating and thirteen have issued a buy rating to the stock. The company presently has a consensus rating of Hold and an average target price of $52.81.
NetApp (NASDAQ:NTAP) last posted its quarterly earnings data on Wednesday, November 15th. The data storage provider reported $0.81 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.69 by $0.12. NetApp had a net margin of 11.49% and a return on equity of 26.77%. The business had revenue of $1.42 billion for the quarter, compared to analysts’ expectations of $1.38 billion. During the same quarter in the previous year, the business posted $0.60 earnings per share. The business’s revenue was up 6.1% compared to the same quarter last year. equities research analysts expect that NetApp will post 2.76 EPS for the current fiscal year.
The business also recently declared a quarterly dividend, which was paid on Wednesday, January 24th. Stockholders of record on Friday, January 5th were issued a $0.20 dividend. This represents a $0.80 dividend on an annualized basis and a dividend yield of 1.42%. The ex-dividend date was Thursday, January 4th. NetApp’s payout ratio is presently 34.33%.
In other NetApp news, CEO George Kurian sold 75,000 shares of the stock in a transaction dated Monday, November 20th. The shares were sold at an average price of $52.50, for a total transaction of $3,937,500.00. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director George T. Shaheen sold 36,916 shares of the stock in a transaction dated Friday, November 17th. The stock was sold at an average price of $53.10, for a total transaction of $1,960,239.60. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 176,629 shares of company stock worth $9,568,956. 0.47% of the stock is owned by company insiders.
Institutional investors have recently modified their holdings of the business. Exane Derivatives grew its holdings in NetApp by 59,850.0% during the 3rd quarter. Exane Derivatives now owns 2,398 shares of the data storage provider’s stock worth $105,000 after acquiring an additional 2,394 shares in the last quarter. IFP Advisors Inc grew its holdings in NetApp by 45.3% during the 4th quarter. IFP Advisors Inc now owns 2,571 shares of the data storage provider’s stock worth $142,000 after acquiring an additional 801 shares in the last quarter. First Personal Financial Services grew its holdings in NetApp by 27,540.0% during the 3rd quarter. First Personal Financial Services now owns 2,764 shares of the data storage provider’s stock worth $121,000 after acquiring an additional 2,754 shares in the last quarter. Quantbot Technologies LP bought a new position in NetApp during the 3rd quarter worth about $131,000. Finally, Krilogy Financial LLC bought a new position in NetApp during the 2nd quarter worth about $122,000. Institutional investors own 94.96% of the company’s stock.
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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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