NetApp, Inc. (NASDAQ:NTAP) is one of the stocks that are grabbing investor focus today: sinking -2.53% or (-1.3 points) to $50.07 from its previous close of $51.37. Does this decline mean it the best stock to buy right now? The shares seem to have an active trading volume day with a reported 1012219 contracts so far this session. NTAP shares had a relatively better volume day versus average trading capacity of 2.79 million shares, but with a 0.24 billion float and a -0.02% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for NTAP stock indicates that the average analyst price target is $53.85 per share. This means the stock has a potential increase of 7.55% from where the NTAP share price has been trading recently which is between $50.91 and $51.84. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $40. Flipping the other side of the coin, an analyst who is fully bullish set a price target as high as $75.
During the recent trading session for NetApp, Inc. (NASDAQ:NTAP), the company witnessed their stock drop by $-1.66 over a week and tumble down $-6.6 from the price 20 days ago. When compared to their established 52-week high of $83.95, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 08/11/18. The recent low of $44.55 stood for a -40.36% since 08/14/19, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 1.53 is also allocated to the stock. Since the beta is greater than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to. At the moment, the median target price for NTAP is set at $50, a figure which is below the recent 1-year high the stock witnessed.
Looking at the current readings for NetApp, Inc., the two-week RSI stands at 40.81. This figure suggests that NTAP stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current NTAP readings is similarly very revealing as it has a stochastic reading of 15.61% at this stage. This figure means that NTAP share price today is being overbought.
Technical chart claims that NetApp, Inc. (NTAP) would settle between $51.84/share to $52.3/share level. However, if the stock price goes below the $50.91 mark, then the market for NetApp, Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $50.44 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -0.89. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.
Analysts at Goldman lowered their recommendation on shares of NTAP from Buy to Sell in their opinion released on October 10. Susquehanna analysts bumped their rating on NetApp, Inc. (NASDAQ:NTAP) stock from Neutral to Positive in a separate flash note issued to investors on September 09. Analysts at Cowen released an upgrade from Underperform to Market Perform for the stock, in a research note that dated back to August 26.
NTAP equity has an average rating of 2.59, with the figure leaning towards a bullish end. 25 analysts who tracked the company were contacted by Reuters. Amongst them, 15 rated the stock as a hold while the remaining 10 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while others rated it as a sell. 8 analysts rated NetApp, Inc. (NASDAQ:NTAP) as a buy or a strong buy while 2 advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.
Moving on, NTAP stock price is currently trading at 11.3X forward 12-month Consensus EPS estimates, and its P/E ratio is 13.2 while for the average stock in the same group, the multiple is 23.2. NetApp, Inc. current P/B ratio of 14.2 means it is trading at a premium against its industry’s 3.2.