NetApp (NASDAQ:NTAP) Trading Down 9.3% After Earnings Miss

NetApp Inc. (NASDAQ:NTAP)’s share price was down 9.3% during mid-day trading on Thursday following a dissappointing earnings announcement. The stock traded as low as $53.19 and last traded at $55.18, approximately 10,365,424 shares were traded during trading. An increase of 342% from the average daily volume of 2,347,514 shares. The stock had previously closed at $60.82.

The data storage provider reported $1.16 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.18 by ($0.02). The firm had revenue of $1.40 billion during the quarter, compared to analysts’ expectations of $1.47 billion. NetApp had a return on equity of 95.04% and a net margin of 17.20%. The firm’s quarterly revenue was down 10.2% on a year-over-year basis. During the same period last year, the firm posted $1.20 earnings per share.

The company also recently declared a quarterly dividend, which will be paid on Wednesday, April 22nd. Investors of record on Friday, April 3rd will be given a dividend of $0.48 per share. This represents a $1.92 annualized dividend and a dividend yield of 3.54%. The ex-dividend date is Thursday, April 2nd. NetApp’s dividend payout ratio (DPR) is currently 47.76%.

Several research firms recently issued reports on NTAP. Susquehanna Bancshares reaffirmed a “buy” rating and issued a $85.00 price objective on shares of NetApp in a research report on Monday, February 10th. BidaskClub cut NetApp from a “hold” rating to a “sell” rating in a research note on Tuesday, February 4th. Bank of America lowered their price target on NetApp from $70.00 to $65.00 and set a “neutral” rating on the stock in a report on Thursday. Standpoint Research raised NetApp from a “hold” rating to a “buy” rating in a report on Monday, December 23rd. Finally, TheStreet cut NetApp from a “b” rating to a “c+” rating in a research report on Wednesday. Four analysts have rated the stock with a sell rating, fifteen have assigned a hold rating and eight have assigned a buy rating to the company. The company presently has a consensus rating of “Hold” and an average price target of $63.26.

In other NetApp news, EVP Henri P. Richard sold 2,500 shares of the stock in a transaction dated Wednesday, January 15th. The stock was sold at an average price of $64.20, for a total value of $160,500.00. Following the transaction, the executive vice president now owns 143,855 shares of the company’s stock, valued at $9,235,491. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, CAO Scott R. Allen sold 2,781 shares of the firm’s stock in a transaction dated Friday, December 13th. The stock was sold at an average price of $62.23, for a total value of $173,061.63. The disclosure for this sale can be found here. Insiders sold 5,284 shares of company stock valued at $333,743 in the last ninety days. 0.33% of the stock is currently owned by corporate insiders.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Maverick Capital Ltd. raised its position in NetApp by 193.4% in the third quarter. Maverick Capital Ltd. now owns 72,287 shares of the data storage provider’s stock worth $3,796,000 after acquiring an additional 47,647 shares during the period. Andra AP fonden increased its stake in shares of NetApp by 0.4% in the 3rd quarter. Andra AP fonden now owns 95,700 shares of the data storage provider’s stock worth $5,025,000 after purchasing an additional 400 shares in the last quarter. Millennium Management LLC increased its stake in shares of NetApp by 411.8% in the 3rd quarter. Millennium Management LLC now owns 600,711 shares of the data storage provider’s stock worth $31,543,000 after purchasing an additional 483,335 shares in the last quarter. Penserra Capital Management LLC bought a new position in NetApp in the 3rd quarter worth $134,000. Finally, Comerica Bank raised its holdings in NetApp by 14.4% in the 3rd quarter. Comerica Bank now owns 83,506 shares of the data storage provider’s stock worth $4,631,000 after purchasing an additional 10,484 shares during the period. 98.26% of the stock is owned by hedge funds and other institutional investors.

The company has a 50-day moving average of $60.10 and a two-hundred day moving average of $56.27. The company has a debt-to-equity ratio of 2.14, a current ratio of 1.31 and a quick ratio of 1.27. The company has a market capitalization of $13.25 billion, a PE ratio of 13.49, a P/E/G ratio of 1.31 and a beta of 1.58.

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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