Netapp (NTAP): overwhelmingly positive sentiment ahead of the earnings

2:01 pm ET, 09 Nov 2018

NetApp, Inc. (NTAP) shares are trading at $81.09, down -2%. The company is announcing its quarterly earnings results on  Wednesday after the market close.  What's driving NTAP stock price? What's NTAP stock price forecast?

NetApp is a hybrid cloud data services and data management company.  Lately, the stock has performed well: it generated a return of 85% in the past year. The company has strong cash flow and returned $605 million to the shareholders in the last quarter.

Investors are showing interest in the company as it benefits from data center storage upgrades to flash.  On the other hand, few bearish investors worry about the broader slowdown in the memory sector.  Last quarter’s revenue rose 11% to $1.47 billion and earnings per share came at $1.04 compared to $0.60 for the same period last year.

Second-quarter results for the fiscal year 2019 will be released on November 14, 2018. Analysts expect the company to earn $0.99 per share on revenue of $1.51 billion. The company beat analysts’ estimates in the previous four quarters.

What is the sentiment towards the NTAP stock? Our technical analysis shows that: 

  • The stock short-term sentiment (next 30 days) is trending positive;
  • The mid-term sentiment (3-6 months) is trending positive;
  • The long-term sentiment (9-12 months) is trending positive. 

Over the last month, NetApp, Inc. (NTAP) returned -7.89%.

NetApp, Inc. (NTAP) forward P/E ratio is 16.12, and it’s high compared to its industry peers’ P/E ratios.

NetApp, Inc. (NTAP) short share of float is 6.21%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock.

NetApp, Inc. (NTAP) average analyst price target ($85.05) is 7.78% above its current price ($78.91).

For the latest price and information on NetApp, Inc., please visit Finstead and search for "NTAP price" or "NTAP news".

NetApp, Inc. (NTAP) Stock Guide

Updated at: 7:11 am ET, 19 Sep 2020

Before we start: if you're looking for NTAP stock price, you can quickly find it out by visiting Finny and typing "NTAP quote". If you're looking for a quick scoop on NTAP stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "NTAP". You'll get all this info in one place. Or you can just type "NTAP news" to get the latest stock news.

Looking to buy or sell NetApp, Inc. (NTAP)? Interested in getting the full scoop on NTAP, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this NTAP stock guide, we'll address key questions about NTAP, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are NTAP earnings?
2. When is NTAP earnings date?
3. What is NTAP dividend?
4. What is NTAP dividend yield?
5. What is NTAP stock forecast (i.e., prediction)?
6. NTAP buy or sell? What is NTAP Finny Score?
7. What are the reasons to buy NTAP? Why should I buy NTAP stock?
8. What are the reasons to sell NTAP? Why should I sell NTAP stock?
9. What are NTAP key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are NTAP earnings?

NTAP trailing 12-month earnings per share (EPS) is $3.49.

2. When is NTAP earnings date?

NTAP earnings date is December 01, 2020.

3. What is NTAP dividend?

NTAP forward dividend is $1.92.

4. What is NTAP dividend yield?

NTAP forward dividend yield is 4.05%.

Analyst Predictions

5. What is NTAP stock forecast (i.e., prediction)?

Based on NTAP analyst price targets, NTAP stock forecast is $49.42 (for a year from now). That means the average analyst price target for NTAP stock is $49.42. The prediction is based on 29 analyst estimates.

The low price target for NTAP is $36.00, while the high price target is $60.00.

NTAP analyst rating is Buy.

Analysis

6. NTAP buy or sell? What is NTAP Finny Score?

#{finnyScore:56}Our quantitative analysis shows 5 reasons to buy and 4 reasons to sell NTAP, resulting in Finny Score of 56.

7. What are the reasons to buy NTAP? Why should I buy NTAP stock?

Here are the reasons to buy NTAP stock:

  • Growth in all-flash solid-state arrays may help to offset weakness in the broader enterprise storage space.
  • Despite shifting workloads to the public cloud, certain limitations, such as security, control, and regulatory demands, could keep some storage workloads on-premises, which bodes well for NetApp’s customer retention.
  • Disaggregating DATA ONTAP from hardware offers new selling opportunities.
  • NTAP quarterly revenue growth was 5.40%, higher than the industry and sector average revenue growth (-0.41% and 0.89%, respectively). See NTAP revenue growth chart.
  • NTAP forward dividend yield is 4.05%, higher than the industry (0.64%) and sector (0.26%) forward dividend yields. See NTAP forward dividend chart.
  • NTAP average analyst rating is Buy. See NTAP analyst rating chart.
  • NTAP average analyst price target ($49.42) is above its current price ($42.61). See NTAP price target chart.
  • NTAP cash to debt ratio is 1.29, higher than the average industry (0.20) and sector (0.17) cash to debt ratio. See NTAP cash to debt chart.

8. What are the reasons to sell NTAP? Why should I sell NTAP stock?

Let's look at the reasons to sell NTAP stock (i.e., the bear case):

  • NetApp’s enterprise storage products for on-premises data centers face the persistent threat of workloads being shifted to public cloud providers, such as Amazon Web Services.
  • We believe that IT managers are striving to extend the useful lives of their on-premises storage systems, which could also weigh on NetApp’s growth.
  • The shift of software-defined storage architectures into mainstream could limit growth opportunities for NetApp.
  • NTAP profitability is declining. The YoY profit margin change was -7.94 percentage points. See NTAP profitability chart.
  • NTAP Price/Book ratio is 36.50, which is high compared to its industry peers’ P/B ratios. See NTAP forward Price/Book ratio chart.
  • NTAP short share of float is 12.39%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock. See NTAP short share of float chart.
  • NTAP short interest (days to cover the shorts) ratio is 6.41. The stock garners more short interest than the average industry, sector or S&P 500 stock. See NTAP short interest ratio chart.

Key Stats

9. What are NTAP key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for NTAP:

Metrics NTAP
Price $41.94
Average Price Target / Upside $49.42 / 17.85%
Average Analyst Rating Hold
Forward Dividend Yield 4.05%
Industry Data Storage
Sector Technology
Number of Employees 10,300
Market Cap $10.36B
Forward P/E Ratio 11.64
Price/Book Ratio 1.89
Revenue (TTM) $5.48B
YoY Quarterly Revenue Growth 5.40%
Profit Margin 14.47%

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