JP Morgan slashes price target on NetApp Inc. [NTAP] – find out why.


NetApp Inc. [NASDAQ: NTAP] stock went on an upward path that rose over 0.82% on Thursday, amounting to a one-week price increase of more than 2.40%. The company report on January 6, 2022 that NetApp Continues Expansion of Leadership Team with Appointment of Elizabeth O’Callahan to Chief Legal Officer and General Counsel.

NetApp® (NASDAQ: NTAP), a global, cloud-led, data-centric software company, today announced the appointment of Elizabeth O’Callahan to Chief Legal Officer (CLO) and General Counsel. O’Callahan previously served as Senior Vice President and General Counsel. This appointment comes as NetApp continues its transformation to the cloud with an increased focus on its growth strategy.

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O’Callahan previously reported to Matt Fawcett in his role as Chief Strategy and Legal Officer. Given the company’s strong growth trajectory, NetApp is decoupling its strategy and legal teams, enabling Fawcett to have a dedicated focus on accelerating the next phase of NetApp’s evolution as Chief Strategy Officer. Both O’Callahan and Fawcett will report to George Kurian, NetApp’s Chief Executive Officer.

Over the last 12 months, NTAP stock rose by 45.02%. The one-year NetApp Inc. stock forecast points to a potential upside of 4.38. The average equity rating for NTAP stock is currently 2.30, trading closer to a bullish pattern in the stock market.

The market cap for the stock reached $21.58 billion, with 223.00 million shares outstanding and 221.40 million shares in the current float. Compared to the average trading volume of 1.63M shares, NTAP stock reached a trading volume of 2394047 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Guru’s Opinion on NetApp Inc. [NTAP]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for NTAP shares is $99.85 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on NTAP stock is a recommendation set at 2.30. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

JP Morgan have made an estimate for NetApp Inc. shares, keeping their opinion on the stock as Overweight, with their previous recommendation back on December 13, 2021. While these analysts kept the previous recommendation, Goldman dropped their target price from $85 to $81. The new note on the price target was released on October 18, 2021, representing the official price target for NetApp Inc. stock. On August 26, 2021, analysts increased their price target for NTAP shares from 75 to 87.

The Average True Range (ATR) for NetApp Inc. is set at 2.06, with the Price to Sales ratio for NTAP stock in the period of the last 12 months amounting to 3.57. The Price to Book ratio for the last quarter was 28.08, with the Price to Cash per share for the same quarter was set at 20.12. Price to Free Cash Flow for NTAP in the course of the last twelve months was 24.87 with Quick ratio for the last quarter at 1.70.

NTAP Stock Performance Analysis:

NetApp Inc. [NTAP] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 2.40. With this latest performance, NTAP shares gained by 9.95% in over the last four-week period, additionally plugging by 23.41% over the last 6 months – not to mention a rise of 45.02% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for NTAP stock in for the last two-week period is set at 63.65, with the RSI for the last a single of trading hit 67.41, and the three-weeks RSI is set at 60.74 for NetApp Inc. [NTAP]. The present Moving Average for the last 50 days of trading for this stock 90.39, while it was recorded at 94.13 for the last single week of trading, and 84.68 for the last 200 days.

Insight into NetApp Inc. Fundamentals:

Operating Margin for any stock indicates how profitable investing would be, and NetApp Inc. [NTAP] shares currently have an operating margin of +16.17 and a Gross Margin at +66.21. NetApp Inc.’s Net Margin is presently recorded at +12.73.

Return on Total Capital for NTAP is now 33.76, given the latest momentum, and Return on Invested Capital for the company is 29.99. Return on Equity for this stock inclined to 157.50, with Return on Assets sitting at 8.65. When it comes to the capital structure of this company, NetApp Inc. [NTAP] has a Total Debt to Total Equity ratio set at 401.75. Additionally, NTAP Total Debt to Total Capital is recorded at 80.07, with Total Debt to Total Assets ending up at 29.40. Long-Term Debt to Equity for the company is recorded at 394.60, with the Long-Term Debt to Total Capital now at 78.64.

Reflecting on the efficiency of the workforce at the company, NetApp Inc. [NTAP] managed to generate an average of $66,364 per employee. Receivables Turnover for the company is 5.98 with a Total Asset Turnover recorded at a value of 0.68.NetApp Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.70 and a Current Ratio set at 1.80.


The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for NTAP. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for NetApp Inc. go to 8.80%.

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NetApp Inc. [NTAP] Insider Position Details

There are presently around $19,591 million, or 94.70% of NTAP stock, in the hands of institutional investors. The top three institutional holders of NTAP stocks are: VANGUARD GROUP INC with ownership of 25,399,143, which is approximately 1.087% of the company’s market cap and around 0.20% of the total institutional ownership; CAPITAL INTERNATIONAL INVESTORS, holding 24,235,809 shares of the stock with an approximate value of $2.3 billion in NTAP stocks shares; and PRIMECAP MANAGEMENT CO/CA/, currently with $1.97 billion in NTAP stock with ownership of nearly -9.002% of the company’s market capitalization.

Positions in NetApp Inc. stocks held by institutional investors increased at the end of November and at the time of the November reporting period, where 310 institutional holders increased their position in NetApp Inc. [NASDAQ:NTAP] by around 12,114,896 shares. Additionally, 284 investors decreased positions by around 13,957,187 shares, while 96 investors held positions by with 180,802,814 shares. The mentioned changes placed institutional holdings at 206,874,897 shares, according to the latest SEC report filing. NTAP stock had 85 new institutional investments in for a total of 2,926,894 shares, while 48 institutional investors sold positions of 1,103,332 shares during the same period.