NetApp Downgraded by Lake Street Capital to Hold (NTAP)

NetApp (NASDAQ:NTAP) was downgraded by investment analysts at Lake Street Capital from a “buy” rating to a “hold” rating in a note issued to investors on Thursday, reports. They currently have a $43.00 price objective on the stock. Lake Street Capital’s price target would indicate a potential upside of 1.58% from the company’s current price.

The analysts wrote, “Standing on the NetApp investor front porch in August 2013 one can clearly see challenges, but also opportunities. The challenges are OEM, federal and Europe. Given the company’s superior clustered storage technology and virtualization-friendly architecture, we see it as a market share gainer as pent up storage demand and state of the art data storage clustering drive better top line growth in coming quarters. However, the shares have appreciated to the point we need to gain a view into revenue upside or a valuation discount before going back to a BUY rating.”

NTAP has been the subject of a number of other recent research reports. Analysts at BMO Capital Markets raised their price target on shares of NetApp from $43.00 to $47.00 in a research note to investors on Tuesday. They now have a “market perform” rating on the stock. Separately, analysts at Brean Capital raised their price target on shares of NetApp from $43.00 to $50.00 in a research note to investors on Monday. They now have a “buy” rating on the stock. Finally, analysts at TheStreet reiterated a “buy” rating on shares of NetApp in a research note to investors on Monday.

One equities research analyst has rated the stock with a sell rating, fifteen have given a hold rating and seventeen have issued a buy rating to the stock. The stock presently has a consensus rating of “Hold” and an average target price of $42.19.

NetApp (NASDAQ:NTAP) traded down 1.84% on Thursday, hitting $41.55. NetApp has a 52-week low of $26.26 and a 52-week high of $43.13. The stock’s 50-day moving average is currently $40.37. The company has a market cap of $15.004 billion and a price-to-earnings ratio of 30.90. NetApp also was the recipient of unusually large options trading on Monday. Traders purchased 11,707 put options on the company, ARN reports.This represents an increase of 221% compared to the typical volume of 3,642 put options.

NetApp (NASDAQ:NTAP) last issued its quarterly earnings data on Wednesday, August 14th. The company reported $0.53 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.49 by $0.04. The company had revenue of $1.52 billion for the quarter, compared to the consensus estimate of $1.53 billion. During the same quarter in the prior year, the company posted $0.42 earnings per share. The company’s quarterly revenue was up 4.9% on a year-over-year basis. Analysts expect that NetApp will post $2.71 EPS for the current fiscal year.

The company also recently declared a quarterly dividend, which is scheduled for Friday, October 25th. Stockholders of record on Monday, October 21st will be given a dividend of $0.15 per share. This represents a $0.60 dividend on an annualized basis and a yield of 1.42%.

In other NetApp news, Chairman Daniel J. Warmenhoven unloaded 41,758 shares of the stock in a transaction dated Thursday, August 1st. The stock was sold at an average price of $41.21, for a total transaction of $1,720,847.18. The sale was disclosed in a filing with the SEC, which is available at this link.

NetApp, Inc (NASDAQ:NTAP) is a provider of storage systems and data management solutions for information technology (IT) infrastructures.

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