NetApp, Inc. (NASDAQ:NTAP), the data storage provider has declared a quarterly dividend of $0.50 per share due to be paid out on Wednesday, July 26th to investors of record on Friday, July 7th. The annualized dividend of $2.00 per share represents a dividend yield of 2.78% and marks a good financial standing for the company’s shareholders.
However, in recent news, it has been reported that CEO George Kurian and President Cesar Cernuda have sold shares in the company. On Tuesday, March 7th, Kurian sold 4,500 shares at an average price of $65.04, totaling $292,680. This was followed by President Cernuda selling 18,000 shares on Wednesday March 15th at an average price of $60.09 totalling $1,081620. Figures from the Securities & Exchange Commission reveal that insiders have divested themselves highly with over 29,250 shares being sold within the last ninety days alone.
Following these insider sales developments which raise some critical questions from NetApp stakeholders around their belief in the long term sustainability and growth potential of the organization; it is important to note that strong stock growth has also been evident recently as NetApp hit a high of up to $79.09 in its twelve-month history range despite starting at a low market capitalization figure that had many investors despondent.
NetApp offers cutting edge cloud data services worldwide including Cloud Volumes Service for AWS and Kubernetes Services among others among other services helping both private individuals and organizations manage and secure their data efficiently while providing seamless infrastructure management solutions across multiple platform environments.
In spite of recent insider stock sales exerting bearish pressures on NetApps stocks following this September’s earnings release date reports indicate market players are keen on keeping quality stocks like NTAP buoyed higher than anticipated presenting great value opportunities for investors still holding onto their shares.
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NetApp Inc. sees growing institutional investor support and strong analyst coverage metrics
NetApp, Inc. is a leading provider of software, systems, and services for the management and sharing of data on-premises as well as through private and public clouds. The company offers a range of cloud data services that include NetApp Cloud Volumes Service for AWS, NetApp Cloud Volumes ONTAP, NetApp Cloud Sync, NetApp Cloud Secure, NetApp Cloud Tiering, NetApp SaaS Backup, NetApp Kubernetes Service, and NetApp Cloud Insights to customers worldwide. The versatility of these products has been particularly appealing to institutional investors and hedge funds that are looking to diversify their portfolios by investing in the tech sector.
One of the most prominent institutional investors that hold shares in this data storage provider is Vanguard Group Inc., which raised its holdings in shares of NetApp by 1.2% during the first quarter of 2023. With over 25 million shares valued at $2.1 billion after buying an additional 294 thousand shares during the last quarter alone, Vanguard Group’s investment underscores their confidence in the future growth prospects of this innovative company.
Another well-known investor that has recently increased its position in NetApp is Wellington Management Group LLP, which now owns over 8 million shares valued at $691 million after acquiring an additional 3 million shares during Q1 2023. These moves demonstrate not only investor confidence but also recognition of the potential for growth in this market sector.
Similarly, Geode Capital Management LLC has also raised its stake in NetApp by 1.8%, bringing their total holdings to approximately 4.6 million shares worth nearly $299 million after acquiring an additional 83 thousand shares during Q1 2023.
Morgan Stanley is another financial institution that sees potential in this data storage provider. They lifted their position in shares of NetApp by over 12% during Q4 2022 with holdings totaling more than two million shares worth $138 million after purchasing an additional 253 thousand shares during the last quarter.
Moreover, amidst rising investor interest is Norges Bank, which recently acquired a new stake in NetApp valued at approximately $138 million during Q4 2022. With institutional investors and hedge funds owning more than 87% of the company’s stock, it’s clear that NetApp has gained significant attention from market participants seeking long-term growth potential while diversifying their investments.
Research analysts’ reports on NTAP shares further confirm this optimism as several firms have raised their target prices for the company, reflecting its strong financial performance. Barclays raised its target price from $67 to $69 in a research note issued on June 1st of this year with Loop Capital lowering its price objective from $67 to $65 and setting a “hold” rating earlier this February.
Northland Securities, for instance, increased its target price on shares of NetApp from $86 to $89 recently and positioned itself as one of the few that have rated the stock as “buy.” Meanwhile, Bank of America downgraded NetApp by dropping it from a neutral rating to an underperform rating while reducing its price target from $70 to $58 earlier this April.
In conclusion, with its versatile cloud data services offerings and strategic acquisitions combined with growing support among institutional investors and strong analyst coverage metrics continue making NetApp Inc. an attractive option in today’s tech sector marketscape.
