NetApp (NTAP) Shares Down 8.1% on Disappointing Earnings

NetApp Inc. (NASDAQ:NTAP) shares traded down 8.1% on Thursday after the company announced weaker than expected quarterly earnings. The stock traded as low as $58.11 and last traded at $61.66. 13,397,097 shares traded hands during trading, an increase of 381% from the average session volume of 2,786,028 shares. The stock had previously closed at $67.10.

The data storage provider reported $1.10 earnings per share for the quarter, missing the consensus estimate of $1.13 by ($0.03). The firm had revenue of $1.59 billion for the quarter, compared to the consensus estimate of $1.64 billion. NetApp had a net margin of 16.85% and a return on equity of 60.32%. NetApp’s quarterly revenue was down 3.2% compared to the same quarter last year. During the same period in the previous year, the company earned $1.05 earnings per share.

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 24th. Stockholders of record on Friday, July 5th will be paid a $0.48 dividend. This represents a $1.92 annualized dividend and a dividend yield of 3.10%. This is a positive change from NetApp’s previous quarterly dividend of $0.40. The ex-dividend date of this dividend is Wednesday, July 3rd. NetApp’s dividend payout ratio is 53.51%.

Several equities research analysts have recently commented on the company. BidaskClub upgraded NetApp from a “buy” rating to a “strong-buy” rating in a research note on Saturday, April 13th. Goldman Sachs Group lowered NetApp from a “conviction-buy” rating to a “buy” rating in a research note on Thursday. Bank of America reduced their price objective on NetApp from $78.00 to $74.00 and set a “buy” rating for the company in a research note on Thursday. Loop Capital reduced their price objective on NetApp to $78.00 and set a “buy” rating for the company in a research note on Thursday. Finally, Piper Jaffray Companies reduced their price objective on NetApp from $90.00 to $81.00 and set an “overweight” rating for the company in a research note on Friday, May 17th. Three research analysts have rated the stock with a sell rating, twelve have given a hold rating and fourteen have assigned a buy rating to the company’s stock. The company presently has a consensus rating of “Hold” and an average target price of $77.00.

Hedge funds have recently modified their holdings of the business. Machina Capital S.A.S. purchased a new stake in NetApp in the 4th quarter worth $409,000. California State Teachers Retirement System increased its stake in NetApp by 2.6% in the 4th quarter. California State Teachers Retirement System now owns 437,774 shares of the data storage provider’s stock worth $26,122,000 after buying an additional 10,911 shares in the last quarter. First Trust Advisors LP increased its stake in NetApp by 34.9% in the 4th quarter. First Trust Advisors LP now owns 2,975,676 shares of the data storage provider’s stock worth $177,559,000 after buying an additional 769,122 shares in the last quarter. Meiji Yasuda Asset Management Co Ltd. increased its stake in NetApp by 11.5% in the 4th quarter. Meiji Yasuda Asset Management Co Ltd. now owns 12,596 shares of the data storage provider’s stock worth $752,000 after buying an additional 1,298 shares in the last quarter. Finally, Teacher Retirement System of Texas increased its stake in NetApp by 6,974.9% in the 1st quarter. Teacher Retirement System of Texas now owns 251,511 shares of the data storage provider’s stock worth $17,440,000 after buying an additional 247,956 shares in the last quarter. Institutional investors and hedge funds own 91.87% of the company’s stock.

The company has a quick ratio of 1.53, a current ratio of 1.56 and a debt-to-equity ratio of 0.93. The company has a market capitalization of $17.29 billion, a PE ratio of 20.73, a price-to-earnings-growth ratio of 1.01 and a beta of 1.40.

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NetApp Company Profile (NASDAQ:NTAP)

NetApp, Inc provides software, systems, and services to manage and share data on-premises, and private and public clouds worldwide. It offers cloud data services, such as ONTAP cloud storage data management and NetApp cloud sync data synchronization services; NetApp SaaS backup for Microsoft Office 365; NetApp cloud backup solutions; OnCommand management software and management integration tools; and NetApp private storage for cloud.

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