NetApp (NASDAQ:NTAP) Price Target Lowered to $190.00 at Citigroup

NetApp (NASDAQ:NTAP) had its price target lowered by stock analysts at Citigroup from $209.00 to $190.00 in a note issued to investors on Thursday, Benzinga reports. The firm currently has a “neutral” rating on the data storage provider’s stock. Citigroup’s target price would suggest a potential upside of 3.14% from the stock’s current price.

NTAP has been the subject of a number of other research reports. Northland Securities set a $187.00 price objective on shares of NetApp in a research report on Thursday. Wall Street Zen lowered NetApp from a “strong-buy” rating to a “buy” rating in a research note on Wednesday, July 29th. Evercore set a $210.00 price target on NetApp in a report on Monday, August 24th. Weiss Ratings upgraded NetApp from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Monday, June 8th. Finally, TD Cowen reissued a “buy” rating and issued a $200.00 price objective on shares of NetApp in a report on Thursday. Six research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $192.07.

NetApp Stock Performance

NetApp stock traded up $3.44 during mid-day trading on Thursday, hitting $184.21. The company had a trading volume of 3,569,760 shares, compared to its average volume of 2,701,759. The company has a market capitalization of $36.15 billion, a price-to-earnings ratio of 29.00, a P/E/G ratio of 2.49 and a beta of 1.44. NetApp has a 12-month low of $93.69 and a 12-month high of $209.06. The company’s fifty day moving average is $177.45 and its 200-day moving average is $139.96. The company has a current ratio of 1.44, a quick ratio of 1.39 and a debt-to-equity ratio of 1.84.

NetApp (NASDAQ:NTAP) last posted its earnings results on Wednesday, September 2nd. The data storage provider reported $2.58 earnings per share for the quarter, beating the consensus estimate of $2.12 by $0.46. NetApp had a net margin of 18.43% and a return on equity of 117.23%. The firm had revenue of $2.02 billion during the quarter, compared to analyst estimates of $1.84 billion. During the same period in the previous year, the firm earned $1.15 EPS. The business’s quarterly revenue was up 29.9% on a year-over-year basis. NetApp has set its FY 2027 guidance at 9.730-10.030 EPS and its Q2 2027 guidance at 2.540-2.640 EPS. Equities research analysts predict that NetApp will post 7.34 EPS for the current year.

Insider Buying and Selling

In related news, EVP Elizabeth M. O’callahan sold 1,000 shares of the stock in a transaction on Monday, August 10th. The stock was 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 directly owned 30,297 shares of the company’s stock, valued at approximately $5,872,164.54. This represents a 3.20% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, President Cesar Cernuda sold 49,464 shares of the stock in a transaction on Tuesday, June 23rd. The shares were sold at an average price of $154.82, for a total value of $7,658,016.48. Following the completion of the transaction, the president directly owned 46,806 shares of the company’s stock, valued at approximately $7,246,504.92. This represents a 51.38% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 55,072 shares of company stock valued at $8,719,520 in the last three months. Insiders own 0.36% of the company’s stock.

Hedge Funds Weigh In On NetApp

Several hedge funds and other institutional investors have recently modified their holdings of the business. California State Teachers Retirement System grew its stake in NetApp by 15,681.5% during the 2nd quarter. California State Teachers Retirement System now owns 48,620,175 shares of the data storage provider’s stock valued at $7,524,458,000 after acquiring an additional 48,312,092 shares in the last quarter. BlackRock Inc. acquired a new position in shares of NetApp during the 2nd quarter worth approximately $2,925,168,000. State Street Corp boosted its holdings in shares of NetApp by 1.1% during the 4th quarter. State Street Corp now owns 10,192,354 shares of the data storage provider’s stock worth $1,091,499,000 after purchasing an additional 115,451 shares during the last quarter. Primecap Management Co. CA purchased a new stake in shares of NetApp in the second quarter valued at approximately $1,395,423,000. Finally, Wellington Management Group LLP grew its position in shares of NetApp by 17.1% in the third quarter. Wellington Management Group LLP now owns 4,915,553 shares of the data storage provider’s stock valued at $582,296,000 after purchasing an additional 718,409 shares in the last quarter. 92.17% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting NetApp

Here are the key news stories impacting NetApp this week:

• Positive Sentiment: NetApp reported fiscal Q1 FY2027 revenue of approximately $2.03 billion, up nearly 30% year over year and well above the roughly $1.84 billion consensus estimate. Non-GAAP EPS was $2.58, also comfortably ahead of expectations near $2.12. NetApp Stock Tanks Despite Strong Q1 Earnings Print
• Positive Sentiment: Management raised its fiscal 2027 outlook to approximately $7.98 billion-$8.23 billion in revenue and $9.73-$10.03 in adjusted EPS. Second-quarter guidance also exceeds consensus, signaling continued demand from artificial intelligence, all-flash storage and hybrid-cloud customers. NetApp FY2027 Forecast and Raised EPS Outlook
• Positive Sentiment: Analysts lifted several price targets following the results. Morgan Stanley raised its target to $191, Susquehanna to $195, and Goldman Sachs maintained a $210 target and Buy rating, citing stronger guidance and cloud momentum.
• Positive Sentiment: NetApp announced that AWS Transform now supports migrations to Amazon FSx for NetApp ONTAP, potentially making it easier for enterprises to move storage and database workloads to AWS. The company also declared a quarterly dividend of $0.52 per share, payable October 28.
• Neutral Sentiment: Analyst opinion remains mixed: Morgan Stanley and Susquehanna kept Equal Weight or Neutral ratings despite higher targets, while Wedbush raised its target only to $170, below the recent trading level.
• Negative Sentiment: The post-earnings selloff reflects weaker free cash flow and profitability concerns. Operating cash flow was about $503 million and free cash flow $401 million, while gross margin declined and management warned that second-quarter gross margin would fall sequentially as product mix and component costs pressure results. NetApp Earnings and Free Cash Flow Decline

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.