NetApp (NASDAQ:NTAP) Announces Earnings Results

NetApp (NASDAQ:NTAP) announced its quarterly earnings data on Wednesday. The data storage provider reported $2.58 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.12 by $0.46, FiscalAI reports. NetApp had a return on equity of 117.23% and a net margin of 18.43%.The business had revenue of $2.02 billion during the quarter, compared to analysts’ expectations of $1.84 billion. NetApp updated its FY 2027 guidance to 9.730-10.030 EPS and its Q2 2027 guidance to 2.540-2.640 EPS.

NetApp Stock Performance

NASDAQ:NTAP traded down $2.39 during trading hours on Wednesday, reaching $180.77. 3,795,871 shares of the company’s stock were exchanged, compared to its average volume of 2,689,264. NetApp has a 1-year low of $93.69 and a 1-year high of $209.06. The company has a quick ratio of 1.39, a current ratio of 1.44 and a debt-to-equity ratio of 1.84. The firm has a market capitalization of $35.47 billion, a price-to-earnings ratio of 28.42, a P/E/G ratio of 3.30 and a beta of 1.45. The company has a 50-day moving average of $176.95 and a 200 day moving average of $139.38.

NetApp News Roundup

Here are the key news stories impacting NetApp this week:

• Positive Sentiment: Quarterly results exceeded expectations. NetApp reported adjusted earnings of $2.58 per share, $0.46 above the consensus estimate, while revenue reached approximately $2.02 billion versus expectations of $1.84 billion. The company also posted an 18.43% net margin and 117.23% return on equity. NetApp quarterly earnings press release
• Positive Sentiment: Management issued guidance above analyst forecasts. NetApp expects second-quarter fiscal 2027 EPS of $2.54-$2.64 and revenue of $2.0-$2.2 billion, compared with consensus estimates of $2.08 and $1.8 billion. Full-year fiscal 2027 guidance calls for EPS of $9.73-$10.03 and revenue of $8.0-$8.2 billion, also above consensus estimates of $8.68 and $7.5 billion.
• Positive Sentiment: Technical and analyst commentary was supportive. A hammer chart pattern was viewed as a potential sign of technical support, while upward earnings-estimate revisions could signal a near-term reversal. Bank of America also forecast strong appreciation potential for NTAP. Zacks NetApp technical analysis
• Neutral Sentiment: Brokerage expectations were broadly close to the market price. The reported average analyst price target was $179.77, indicating limited near-term upside based on that measure, although individual analysts may be more bullish.
• Negative Sentiment: The muted stock reaction may reflect elevated expectations. NTAP trades near its 12-month high and at a relatively demanding valuation, with a reported price-to-earnings ratio of 28.42. Investors may have used the earnings event to lock in gains even though the results and outlook surpassed consensus.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on NTAP shares. Wells Fargo & Company raised their price objective on shares of NetApp from $115.00 to $180.00 and gave the company an “equal weight” rating in a report on Friday, May 29th. Wall Street Zen downgraded shares of NetApp from a “strong-buy” rating to a “buy” rating in a research report on Wednesday, July 29th. Northland Securities upped their target price on shares of NetApp from $137.00 to $171.00 and gave the company an “outperform” rating in a report on Friday, May 29th. UBS Group reaffirmed a “neutral” rating and issued a $160.00 target price on shares of NetApp in a research report on Friday, May 29th. Finally, Wedbush boosted their price target on shares of NetApp from $115.00 to $150.00 and gave the company a “neutral” rating in a research report on Friday, May 29th. Five investment analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company. According to MarketBeat, the company has an average rating of “Hold” and an average target price of $184.08.

Insiders Place Their Bets

In related news, President Cesar Cernuda sold 49,464 shares of the firm’s stock in a transaction dated Tuesday, June 23rd. The stock was sold at an average price of $154.82, for a total transaction of $7,658,016.48. Following the transaction, the president owned 46,806 shares of the company’s stock, valued at $7,246,504.92. This trade represents a 51.38% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, EVP Elizabeth M. O’callahan sold 1,000 shares of the business’s stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $193.82, for a total value of $193,820.00. Following the completion of the transaction, the executive vice president owned 30,297 shares in the company, valued at $5,872,164.54. This trade represents a 3.20% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 55,072 shares of company stock worth $8,719,520. 0.36% of the stock is currently owned by company insiders.

Institutional Trading of NetApp

Hedge funds have recently added to or reduced their stakes in the stock. Geneos Wealth Management Inc. raised its stake in shares of NetApp by 38.3% during the first quarter. Geneos Wealth Management Inc. now owns 759 shares of the data storage provider’s stock worth $67,000 after purchasing an additional 210 shares during the last quarter. Sivia Capital Partners LLC acquired a new stake in NetApp in the second quarter valued at about $315,000. Cerity Partners LLC boosted its stake in shares of NetApp by 9.9% in the second quarter. Cerity Partners LLC now owns 46,792 shares of the data storage provider’s stock valued at $4,986,000 after buying an additional 4,232 shares in the last quarter. Bank of Nova Scotia raised its position in NetApp by 7.3% in the second quarter. Bank of Nova Scotia now owns 24,301 shares of the data storage provider’s stock worth $2,589,000 after acquiring an additional 1,662 shares in the last quarter. Finally, NewEdge Advisors LLC lifted its holdings in NetApp by 12.7% in the second quarter. NewEdge Advisors LLC now owns 20,161 shares of the data storage provider’s stock valued at $2,148,000 after acquiring an additional 2,277 shares during the period. 92.17% of the stock is owned by institutional investors and hedge funds.

NetApp Company Profile

NetApp, Inc (NASDAQ: NTAP) is a data management and storage company that delivers hybrid cloud data services for applications and data. Founded in 1992 as Network Appliance and rebranded as NetApp in 2008, the company is headquartered in Sunnyvale, California. NetApp’s offering focuses on enabling organizations to store, manage, protect and move data across on-premises environments and major public clouds.

The company’s product portfolio centers on the ONTAP data management software and a range of storage systems and services built around it.