NetApp (NTAP, $49.78) gets rating downgrade and price target cut from Goldman Sachs, on enterprise market concerns
On Thursday, NetApp shares got a rating downgrade and a price target cut from Goldman Sachs analyst Rod Hall.
Hall lowered his rating on the cloud data services company’s stock to sell from buy. He slashed his price target on the shares as well.
The analyst is concerned that trade tensions and economic uncertainty will weigh on enterprise spending, thereby making NetApp vulnerable. Hill indicated in his note that NetApp’s Enterprise License Agreement guidance of 2% of total revenue in FY’20, which is heavily second-half loaded, may be difficult to achieve given that the deals tend to largely involve larger enterprise customers.
However, several other analysts might have had a somewhat different view in the recent past, regarding NetApp shares. Cowen analyst Karl Ackerman in August upgraded NetApp stock to market perform from underperform and hiked his price target to $45 from $40. Last month, Susquehanna analyst Mehdi Hosseini upgraded his rating to positive from neutral, and also raised his one-year price target to $75 from $54.
NTAP sees MACD Histogram just turned negative
NTAP saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on September 18, 2023. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 46 instances where the indicator turned negative. In of the 46 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for NTAP moved out of overbought territory on September 07, 2023. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 43 similar instances where the indicator moved out of overbought territory. In of the 43 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on September 18, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on NTAP as a result. In of 82 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
NTAP moved below its 50-day moving average on September 18, 2023 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for NTAP crossed bearishly below the 50-day moving average on September 21, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where NTAP declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
NTAP broke above its upper Bollinger Band on September 01, 2023. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for NTAP entered a downward trend on September 06, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 3 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where NTAP advanced for three days, in of 345 cases, the price rose further within the following month. The odds of a continued upward trend are .
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: NTAP's P/B Ratio (18.182) is slightly higher than the industry average of (4.269). P/E Ratio (13.774) is within average values for comparable stocks, (65.478). Projected Growth (PEG Ratio) (0.944) is also within normal values, averaging (85.308). Dividend Yield (0.026) settles around the average of (0.037) among similar stocks. P/S Ratio (2.672) is also within normal values, averaging (10.963).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. NTAP’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. NTAP’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 88, placing this stock worse than average.
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Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
Provides data management and storage solutions
Industry ComputerPeripherals
NTAP and
Correlation & Price change
A.I.dvisor indicates that over the last year, NTAP has been closely correlated with WDC. These tickers have moved in lockstep 67% of the time. This A.I.-generated data suggests there is a high statistical probability that if NTAP jumps, then WDC could also see price increases.
| Ticker / NAME | Correlation To NTAP | 1D Price Change % | ||
|---|---|---|---|---|
| NTAP | 100% | +0.16% | ||
| WDC - NTAP | 67% Closely correlated | +1.58% | ||
| HPQ - NTAP | 65% Loosely correlated | -0.11% | ||
| PSTG - NTAP | 60% Loosely correlated | -0.09% | ||
| DELL - NTAP | 57% Loosely correlated | +2.35% | ||
| STX - NTAP | 54% Loosely correlated | +0.69% | ||
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