NetApp Inc. (NASDAQ:NTAP) finished Wednesday with an addition of $0.02 to close at $76.53, an upside of 0.03 percent. An average of 2,576,020 shares of common stock have been traded in the last five days. There was a gain of $1.12 in the past week, and it reached a new high 7 times over the past 12 months. The last 20 days have seen an average of 2,100,210 shares traded, while the 50-day average volume stands at 2,273,022.
NTAP stock has decreased by -3.20% in the last month. The company shares reached their 1-month lowest point of $74.38 on 08/18/23. With the stock rallying to its 52-week high on 07/21/23, shares of the company touched a low of $58.08 and a high of $80.53 in 52 weeks. It has reached a new high 26 times so far this year and achieved 27.42% or $16.47 in price. In spite of this, the price is down -4.97% from the 52-week high.
Insider Transactions
NTAP stock investors should be aware that NetApp Inc. (NTAP) stock had its last reported insider trading activity 14 days ago on Aug 10. In this transaction, the insider spent $67,276. Chief Executive Officer, Kurian George, disposed of 4,500 shares at a price of $77.66 on Aug 08. The insider now owns more than $349,471 worth of shares. Prior to that, Chief Executive Officer Kurian George went on to Sale 4,500 shares at $78.52 each on Jul 11. An amount of $353,322 was transacted.
Valuation Metrics
NetApp Inc. (NTAP) has a trailing price-to-earnings (P/E) ratio of 13.22. The stock’s beta is 1.19. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 2.53, the price-to-book (PB) ratio at 14.12, and the price-to-cash flow ratio at 18.52.
The company has a payout ratio of 34.00%. The company’s most recent quarterly dividend payment was $0.50 a share, without any change from last year. Its latest increase dividend $0.02 reported on Wednesday June 2 2021.
Financial Health
The quick ratio of NetApp Inc. for the three months ended April 29 was 1.30, and the current ratio was 1.30, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 2.06 and a total debt to equity ratio of 2.06 for the quarter ending April 29. NetApp Inc.’s EBITDA margin for the year ending April 29 is 22.89%, while its operating margin for the same period stands at 16.00%. Its gross profit as reported stood at $4.21 billion compared to revenue of $6.36 billion.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, NetApp Inc.’s return on assets was 13.10%.
Earnings Surprise
For the three-month period that ended April 29, NetApp Inc. had $2.39 billion in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $245.0 million in the quarter, while revenues were shrunk -5.71%. The analyst consensus anticipated NetApp Inc.’s latest quarter earnings to come in at $1.34 per share, but it turned out to be $1.54, a 14.90% surprise. For the quarter, EBITDA amounted to $375.0 million. Shareholders own equity worth $212.43 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at NetApp Inc. (NTAP) price momentum. RSI 9-day as of the close on 23 August was 47.76%, suggesting the stock is Neutral, with historical volatility in this time frame at 12.30%.
As of today, NTAP’s price is $75.97 +1.49% or $1.12 from its 5-day moving average. NTAP is currently trading -2.39% lower than its 20-day SMA and +22.31% higher than its 100-day SMA. However, the stock’s current price level is +7.15% above the SMA50 and +13.14% above the SMA200.
The stochastic %K and %D were 39.72% and 29.67%, respectively, and the average true range (ATR) was 1.27. With the 14-day stochastic at 42.32% and the average true range at 1.32, the RSI (14) stands at 48.75%. The stock has reached 0.42 on the 9-day MACD Oscillator while the 14-day reading was at -0.10.
Analyst Ratings
Morgan Stanley upgraded NetApp Inc. (NASDAQ: NTAP) to a an Equal-weight rating in its most recent analyst report. Previously, the stock was rated as an Underweight. The consensus rating for NetApp Inc. (NTAP) among analysts is Hold. According to current brokerage recommendations, 0 brokerage firms advise that investors sell NTAP, while 14 suggest investors hold. There are 1 analyst who rate the stock as underweight. The stock is rated overweight by 2 analysts, while 5 others rate it as a “buy”.
What is NTAP’s price target for the next 12 months?
Analysts predict a range of price targets between $61.00 and $89.00, with a median target of $77.50. Taking a look at these predictions, the average price target given by analysts for NetApp Inc. (NTAP) stock is $76.44.
