Jefferies opens $2.24M NetApp stake as storage firm beats revenue estimates
What's the deal? Jefferies Financial GroupDealroom has a profile for this one. Try Dealroom → bought a new position in NetApp during the second quarter, acquiring 14,447 shares worth roughly $2,236,000, according to a filing with the Securities and Exchange Commission. The move adds Jefferies to a heavily institutional shareholder base — funds and hedge funds hold 92.17% of the data storage provider's stock.
The numbers: NetApp shares opened at $187.02 on Friday, giving the company a market cap of $36.70 billion and a price-to-earnings ratio of 29.41. The stock trades near the upper end of its 12-month range of $93.69 to $209.06, well above its 200-day moving average of $138.03.
Why now? NetApp's latest quarter cut both ways. Revenue reached $1.95 billion, topping the $1.87 billion consensus and rising 12.5% year on year, but earnings of $2.03 per share missed estimates of $2.27.
What's the endgame? NetApp sells data storage systems, and its return on equity of 117.23% and 18.43% net margin point to a profitable core business. Analysts expect it to post 7.34 earnings per share for the current fiscal year.
Other large investors reshuffled their holdings in recent quarters. Norges BankDealroom has a profile for this one. Try Dealroom → opened a stake worth about $458,060,000, while Handelsbanken FonderDealroom has a profile for this one. Try Dealroom → more than doubled its position to 262,732 shares, worth $28,136,000.
What Wall Street thinks: Ratings are split. Five analysts rate the stock a buy and 10 call it a hold, for a consensus "Hold" and a target price of $179.77. Price targets range widely, from CitigroupDealroom has a profile for this one. Try Dealroom → and EvercoreDealroom has a profile for this one. Try Dealroom → near $210 to WedbushDealroom has a profile for this one. Try Dealroom → at $150.
The signal: Jefferies' modest new position, set against Norges Bank's far larger bet and a divided analyst view, reflects cautious optimism around NetApp. The company is riding double-digit revenue growth and demand for data storage, but the earnings miss and a "Hold" consensus show the market is not fully convinced the run can continue.
Read more: tickerreport.com
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