Osaic Holdings Inc. significantly increased its investment in NetApp, Inc. (NASDAQ: NTAP) during the second quarter of 2023, raising its stake by an impressive 555.1%. According to Holdings Channel.com, Osaic Holdings now owns 80,879 shares of the data storage provider, having purchased an additional 68,533 shares during the quarter. As a result, the value of Osaic’s holdings in NetApp amounted to approximately $8.6 million at the end of the quarter.
In addition to Osaic’s substantial investment, several other hedge funds have adjusted their stakes in NetApp. Epoch Investment Partners Inc. increased its holdings by 3.8%, now owning 1,810,772 shares worth around $192.9 million after acquiring 66,045 shares in recent months. Other notable transactions include Patton Fund Management Inc., which purchased a new stake valued at $265,000, and Aurora Investment Counsel, which acquired a stake worth approximately $2.3 million.
SG Americas Securities LLC saw the most dramatic increase, growing its stake by 1,081.8% to own 292,756 shares, valued at $31.2 million. Similarly, the Swiss National Bank raised its holdings by 9.0%, now owning 624,800 shares worth about $66.6 million. Collectively, institutional investors currently hold 92.17% of NetApp’s stock.
Insider trading activity also marked the week, with notable sales reported. CAO Lorenzo Daniel De sold 779 shares on September 25, 2023, at an average price of $121.87, totaling around $94,937. Similarly, EVP Elizabeth M. O’Callahan sold 1,000 shares on October 10, 2023, at an average price of $119.00, amounting to $119,000. After these transactions, her remaining shares are valued at $2.7 million, reflecting a 4.23% decrease in ownership.
Furthermore, insiders have sold a total of 2,433 shares valued at $284,229 over the past three months, with insiders now owning 0.28% of the company’s stock.
NetApp’s Recent Performance and Future Outlook
NetApp’s stock recently experienced a slight uptick of 1.3%. The company reported its earnings results on November 25, 2023, revealing earnings per share (EPS) of $2.05, surpassing analysts’ expectations of $1.88 by $0.17. NetApp’s revenue for the quarter reached $1.71 billion, outperforming analyst estimates of $1.69 billion. The company’s return on equity stood at 121.28% with a net margin of 17.73%, showing a year-over-year revenue increase of 2.8%.
Looking ahead, NetApp has provided guidance for fiscal year 2026, projecting EPS between $7.75 and $8.05, and for the third quarter of 2026, guidance ranges from $2.01 to $2.11 per share. Analysts expect an average EPS of $5.89 for the current year.
Dividends and Analyst Ratings
NetApp recently announced a quarterly dividend of $0.52, scheduled for payment on January 21, 2024, to shareholders on record as of January 2, 2024. This dividend represents an annualized rate of $2.08 and a yield of 1.9%, with a payout ratio of 36.17%.
Several research firms have weighed in on NetApp’s stock. On October 10, 2023, Wedbush maintained a “neutral” rating with a price target of $110.00. Barclays raised its target price from $125.00 to $134.00, giving the stock an “overweight” rating in a report released on November 26, 2023. Additionally, Bank of America increased its price objective from $125.00 to $129.00, maintaining a “neutral” rating.
Overall, one analyst has assigned a “Strong Buy” rating, eight analysts have rated the stock as a “Buy,” and ten have given it a “Hold” rating. According to MarketBeat.com, NetApp currently holds an average rating of “Moderate Buy” with an average target price of $124.07.
NetApp, founded in 1992 and headquartered in Sunnyvale, California, specializes in data management and storage solutions, providing hybrid cloud data services for organizations looking to manage their data across various environments and public clouds.
