The Case for and Against NetApp, Inc. (NTAP)

NetApp, Inc. (NTAP) is an interesting player in the Technology space, with a focus on Data Storage Devices. The stock has been active on the tape, currently trading at $61.81, up from yesterday’s close by 1.91%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

NetApp, Inc. (NTAP) currently trades with a market capitalization of $16.63 Billion. That value represents a market adjusting for revenues that have been growing by 6.12 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $1.02 Billion over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $0.9 on a per share basis this quarter. Perhaps, that suggests something about why 0.33% of the outstanding share supply is held by institutional investors.

Technical Analysis

We’ve taken a serious look at this stock from a fundamental perspective, but the tale of the tape may offer more hints about what lies under the surface. Looking at the stock’s movement on the chart, NetApp, Inc. recorded a 52-week high of $60.66. It is now trading -1.15% off that level. The stock is trading $54.13 its 50-day moving average by -7.68%. The stock carved out a 52-week low down at $35.08.

In recent action, NetApp, Inc. (NTAP) has made a move of +6.94% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 21.04, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 4.87% with $266.62 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of NTAP.

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