Shares of NetApp, Inc. (NASDAQ:NTAP) recorded 2.11% gain during trading session on January 10th, 2019. The script traded as low as $59.69 and last traded at $61.46. 2.8 million shares changed exchanged hands during trading, an increase of 19.18% from the 30-day average session volume of 3.46M shares. The firm had previously closed at $60.19. The company has $255.74M outstanding shares, a price-to-earnings ratio of 14.67, price-to-earnings-growth ratio of 2.55and a beta of 1.38. The company has a RSI of 45.89, ATR of 2.35 and a volatility of 2.72% this week. NTAP has a 52 week low price of $52.00 and a 52 week high price of $88.08.
Investors have identified the tech company NetApp, Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around 15.72B, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
NetApp, Inc. (NTAP) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For NTAP, the company has in raw cash 2.36 billion on their books with 472 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 5.47 billion total, with 0 as their total liabilities. This figure have given the company a good sense of viability under numerous contexts.
NTAP were able to record 384 million as free cash flow during the recently reported quarter of the year, this saw their quarterly net cash flow reduce by 582 million. In cash movements, the company had a total of 491 million as operating cash flow.
Potential earnings growth for NetApp, Inc. (NTAP)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, NetApp, Inc. recorded a total of 1.52 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 0.07% coming in sequential stages and their sales for the third quarter increasing by 0.03%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 543 million trying to sell their products during the last quarter, with the result yielding a gross income of 974 million. This allows shareholders to hold on to 255.74M with the revenue now reading 930 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (1.14 cents a share).
Is the stock of NTAP attractive?
Having a look at the company’s valuation, the company is expected to record 4.52 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on NTAP sounds very interesting.
In related news, CEO Kurian George sold 10,000 shares of the company’s stock in a transaction that recorded on November 20th, 2019. The sale was performed at an average price of 66.66, for a total value of 666,550. As the sale deal closes, the EVP, Go To Market Kurian George now sold 2,525 shares of the company’s stock, valued at 175,623. Also, CEO Kurian George sold 6,000 shares of the company’s stock in a deal that was recorded on November 1st, 2019. The shares were sold at an average price of 78.35 per share, with a total market value of 12,044. Following this completion of acquisition, the CEO now holds 11,435 shares of the company’s stock, valued at 897,142. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.19%.
7 out of 27 analysts covering the stock have rated it a Buy, while 11 have maintained a Hold recommendation on NetApp, Inc. stock. 0 analysts has assigned a Sell rating on the NTAP stock. The 12-month mean consensus price target for the company’s shares has been set at $85.38.