Osaic Holdings Inc. has significantly increased its stake in NetApp, Inc. (NASDAQ: NTAP) by a remarkable 555.1% during the second quarter of 2023. According to Holdings Channel, Osaic now holds 80,879 shares of the data storage company, following the acquisition of an additional 68,533 shares in that period. The total value of Osaic’s holdings in NetApp reached approximately $8.62 million by the end of June 2023.
Other institutional investors have also adjusted their positions in NetApp. Epoch Investment Partners Inc. raised its stake by 3.8%, now owning 1,810,772 shares valued at about $192.94 million after acquiring an additional 66,045 shares. Patton Fund Management Inc. entered the fray with a new stake worth $265,000, while Aurora Investment Counsel invested approximately $2.34 million in NetApp shares.
Another noteworthy move came from SG Americas Securities LLC, which grew its holding by an astonishing 1,081.8%. They now possess 292,756 shares valued at around $31.19 million after purchasing an additional 267,985 shares in the same quarter. Swiss National Bank also increased its holdings by 9.0%, owning 624,800 shares worth about $66.57 million.
Currently, institutional investors own 92.17% of NetApp’s stock, underscoring the company’s strong presence among major investment firms.
Insider Trading Activity
In other developments, insider trading activity has been reported. CAO Lorenzo Daniel De sold 779 shares on September 25, 2023, at an average price of $121.87, bringing in a total of $94,936.73. Additionally, EVP Elizabeth M. O’Callahan sold 1,000 shares on October 10, 2023, for $119,000. Following the transaction, O’Callahan holds 22,628 shares valued at $2.69 million, reflecting a 4.23% decrease in her ownership.
Overall, insiders have sold a total of 2,433 shares valued at $284,229 within the last three months, with insiders currently holding only 0.28% of NetApp’s stock.
NetApp’s Financial Performance
NetApp recently reported its earnings results for the previous quarter, revealing a 1.3% increase in stock value. For the quarter ending November 25, 2023, the company posted earnings of $2.05 per share, exceeding analysts’ expectations of $1.88 by $0.17. The firm’s revenue stood at $1.71 billion, surpassing the anticipated $1.69 billion. NetApp’s return on equity was recorded at an impressive 121.28%, with a net margin of 17.73%, and the quarterly revenue reflected a year-on-year growth of 2.8%.
Looking ahead, NetApp has set its fiscal year 2026 guidance between $7.75 and $8.05 per share, with a third-quarter forecast ranging from $2.01 to $2.11 per share. Analysts predict an average earnings per share of $5.89 for the current year.
Additionally, NetApp has declared a quarterly dividend of $0.52 per share, scheduled for payment on January 21, 2024. Shareholders of record by January 2, 2024 will be eligible for this payment, which translates to an annualized dividend of $2.08 and a yield of 1.9%. The company’s dividend payout ratio currently stands at 36.17%.
Market Analyst Ratings
Market analysts have been evaluating NetApp’s stock, with varying opinions on its future performance. Wedbush has maintained a “neutral” rating with a target price of $110.00, while Barclays has raised its price target from $125.00 to $134.00, rating the stock as “overweight.” Other firms, including Bank of America, have adjusted their ratings, with a new price objective of $129.00.
The consensus among analysts shows that the stock is rated as a “Moderate Buy,” with an average target price of $124.07. Notably, one analyst has assigned a “Strong Buy” rating, while eight have given it a “Buy” rating and ten have opted for “Hold.”
In summary, Osaic Holdings’ substantial increase in stake, alongside the positive earnings report and dividend announcement, highlights a promising outlook for NetApp amid strong institutional interest and favorable analyst ratings.
