NASDAQ:NTAP
$30.90
(2/9 1:42PM)
+1.2%
| Open | $30.91 |
Mkt Cap | $10.3 Billion |
| High | $31.18 |
52Wk High | $34.99 |
| Low | $30.41 |
52Wk Low | $12.39 |
| Volume | 4.5 Million |
Avg Vol 10D | 7.2 Million |
Ockham's Rating/Recommendation Summary
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NTAP Revenue
As a value investing shop, we are interested in seeing how NTAP's revenues measure up against past performances. One easily understandable way of doing that is to compare Price to Sales per share levels over a given time frame. Assuming it is available, Ockham prefers to look at ten years of history (for this stock there are 10 years of history available) and we weigh recent years more heavily. This allows us to find weighted average historical high and low Price to Sales ratios, which give us a better idea of the stock's current underlying value. Using this method, we have established a high range for Price to Sales of 5.35x and the low end of the range at 2.49x.
With respect to these historically rational metrics, notice that the current Price to Sales per share ratio for NTAP of 3.05x is well below its normal historic Price to Sales levels. At a price of $30.38, NTAP is 23% below where we would expect to see it. Clearly, this stock looks undervalued compared to historical levels, at least on a Price to Sales basis. This will positively affect our analysis because it is rare to find a stock this far below historical norms, and we would expect some price appreciation to bring this metric back towards a more normal range.
NTAP Cash Earnings
As a value investment framework, Ockham Research is similar to a private equity firm in terms of our valuation methods. We are always on the lookout for value in the form of sales and cash numbers. In the case of NTAP, Ockham views their current Cash Earnings as above their historical average multiples of Cash Earnings, as calculated by our proprietary analysis. It is incredibly important to understand that for NTAP, the current level of Cash Earnings compared to its historical levels helps identify where NTAP is in relation to what the investing community was willing to pay for this level of Cash Earnings in the past. With a historical high Cash Earnings per share ratio of 41.96 and a historical low Cash Earnings per share ratio of 18.90, an investor can relate where value becomes optimal.
So when we look at NTAP, what does this slightly higher than historical level of Price to Cash Earnings mean? From the Ockham perspective, it basically represents that the market has a higher stock price attributed to this level of Cash Earnings than compared to normal. So while we view this as a negative from a valuation perspective, it certainly doesn't mean that NTAP couldn't rapidly improve in its value from other factors or a decline in stock price. The current Price to Cash Earnings level of 32.32 is 6% above the historical norm as calculated at Ockham. So a decline in stock price, or more hopefully, an increase in NTAP's Cash Earnings levels would improve our outlook for the stock.
NTAP Dividends
When determining a company's future prospects for success, Ockham Research sees analysis of dividend payments as a key additional factor. Even though it isn't imperative for NTAP to shell out a dividend in order to receive a positive rating, it can be helpful to further our analysis. As far as our investing methodology goes, it is not necessary to pay a dividend in order to get a favorable rating, so as for right now NTAP gets a neutral rating for the dividend portion of the model. As you can see, we are not receiving historical dividend information from our data provider on NTAP at this time.
What are the Experts Saying? Analysts and NTAP on Fast Money
When the television or blog talks about an analysts' opinion it could have a major impact on the stock.
Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see NetApp, Incorporated underperforming. The Ockham valuation currently has a Fairly Valued stance on NTAP because it trades within the price range that we would expect given current market conditions and fundamentals. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, NetApp, Incorporated has actually sunk a bit in comparison to the others.
“… target. Still a big short interest. I still own NETAPP. >> we will drop for hockey game. >> what? >> it was a quick game. …”
News Breaking on NetApp, Incorporated on Squawk On The Street
News has broken via the television and viral blogs regarding NTAP, so investors should take an interest in learning what was said.
NetApp, Incorporated receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. We noticed recently that in comparison to all other stocks we analyze in the news; NTAP has received less coverage from the financial media in business television and blogs. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform.
“… On the other side of the ledger, NETAPP at neutral from buy. > > thank you very much for that, brian. > > > an event in the markets could mean big volatility or not. …”
Fast Money discussing annual events surrounding NTAP
NTAP was discussed in regards to 52-week news on Fast Money, so be sure to look into this headline news a little closer.
The Ockham valuation currently has a Fairly Valued stance on NTAP because it trades within the price range that we would expect given current market conditions and fundamentals. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, NetApp, Incorporated has actually sunk a bit in comparison to the others. Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see NetApp, Incorporated underperforming.
“… NTAP. Did I mention that? > > yes, you have mention the > > this stock, it's very hard to buy it but we have flagged this one for at least the last $16, closed basically on a ... …”
News Developing on Closing Bell for NTAP
The latest news from business television and influential blogs is always available through Ockham's RazorWire, and this news is in relation to NetApp, Incorporated.
NetApp, Incorporated receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. Ranking all stocks in terms of news coverage offers some interesting data. In the case of NTAP, it is getting significantly more attention in recent news coverage than we are used to seeing. Due to deterioration in our valuation, we downgraded NTAP as of Saturday, November 07, 2009. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform.
“… NETAPP is one of them after posting better than expected earnings. It is too the upside. One of the few within the nasdaq 100. …”
NTAP Profits on the Mind of Mad Money
Any suprise in earnings can cause a major swing in stock prices, so we are always on the look out for the freshest news available for earnings reports or expectations.
When taking into account the amount of news coverage each stock normally sees as a percentage of the total, NetApp, Incorporated has actually sunk a bit in comparison to the others. The Ockham valuation currently has a Fairly Valued stance on NTAP because it trades within the price range that we would expect given current market conditions and fundamentals. We have recently (Saturday, November 07, 2009) downgraded this stock due to deteriorating fundamentals.
“… Target, dell, gap stores, NETAPP is high priced to earnings multiple high growth stocks. They are expensive. For them, the hurdle is high. It means nothing for them. …”
NTAP News Mentioned on Mad Money Recently
NetApp, Incorporated is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on Mad Money.
We noticed recently that in comparison to all other stocks we analyze in the news; NTAP has received less coverage from the financial media in business television and blogs. NetApp, Incorporated receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. Due to deterioration in our valuation, we downgraded NTAP as of Saturday, November 07, 2009.
“… On wednesday, we have netap, nta NTAP. We have gap stores and dell on okay. These companies are all going to be riveted on. …”
NetApp, Incorporated (NTAP) Discussed on CNBC's Fast Money
NetApp, Incorporated is in the news. Find out how this impacts NTAP trading on Ockham Research.
Look at crede. 39.10, up 5 1/2%. Jpmorgan initiates overweight $45 price target. Look what they did after they priced 11 million shares stock's gone straight up since. The valuations don't make sense. NTAP, petey's talked about it forever, another 52-week high today up 5%. Their analysts yesterday said great things. Another analyst on yesterday talking about NTAP -- >> you've been all over that, guy. Very nice job. >> let's move on to the next time to head to the charts and chart center. Back at cnbc headquarters. Markets hitting a new 2009 high with the dow up almost 4% this let's bring in glide path to tell us where we are headed next. Of course his name is -- actual name is greg troccoli of opalesque. Gladder, let's walk through the charts. You're not at headquarters today, I feel very lonely. 10,000, the near-term holy grail, we're going to hit 10,000 there's a couple things i'd like traders to consider. Number one is a few weeks ago we just got up to 9918. 9,918 in the dow, didn't quite get to 10,000, we retraced a little bit. We're just under that point right now. I would propose this -- that the 50% retracement between the '07 high on the dow and the march low comes in right around
“… high today up 5%. Their analysts yesterday said great things. Another analyst on yesterday talking about NTAP -- >> you've been all over that, guy. Very nice job. >> let's move on to the next time to head to the charts and chart center. Back at cnbc headquarters. Markets hitting a new 2009 high with the dow up almost 4% this let's bring in glide path to tell us where we are headed next. Of course his name is -- actual name is greg troccoli of opalesque. Gladder, let's walk through the charts. You're not at headquarters today, I feel very lonely. 10,000, the near-term holy grail, we're going to hit 10,000 there's a couple things i'd like traders to consider. Number one is a few weeks ago we just got up to 9918. 9,918 in the dow, didn't quite get to 10,000, we retraced a little bit. We're just under that point right now. I would propose this -- that the 50% retracement between the '07 high on the dow and the march low comes in right around …”
NetApp, Incorporated (NTAP) Discussed on CNBC's Squawk On The Street
NetApp, Incorporated is in the news. Find out how this impacts NTAP trading on Ockham Research.
Up 1 1/2%. Up graded from out perform at target is 84 bucs. Baidu's price target was down NETAPP is up 1 1/2%. Upgraded at fink equity. Vertex out of gates at a plus initiated out perform at rbc. Let's go to share epperson at the nymex. >> the dollar rebound continues weakness across the board in the commodities sector. In london, trading, oil as well as here at the new york mercantile exchange. Take a look at what is happening across the board, heating oil and valero said it is not ruling out any strategic alternative including down some of this refineries here to deal with the decline in demand. Meanwhile, looking at natural gas prices also lower. Even though we are expecting to see temperatures in the week in terms of metal prices, again, weakness across the board here, run-up in gold prices, three days of records for gold prices. Keep in mind we're looking at technical lefvels here, key support area and 10.3 3, the high for march of 2008.
“… und continues weakness across the board in the commodities sector. In london, trading, oil as well as here at the new york mercantile exchange. Take a look at what is happening across the board, heating oil and valero said it is not ruling out any strategic alternative including down some of this refineries here to deal with the decline in demand. Meanwhile, looking at natural gas prices also lower. Even though we are expecting to see temperatures in the week in terms of metal prices, again, weakness across the board here, run-up in gold prices, three days of records for gold prices. Keep in mind we're looking at technical lefvels here, key support area and 10.3 3, the high for march of 2008. …”
NetApp, Incorporated (NTAP) Discussed on CNBC's Fast Money
NetApp, Incorporated is in the news. Find out how this impacts NTAP trading on Ockham Research.
Been onboard as well. $30 price target. Can you explain the story quick to folks out there? We tried. You probably do a bet are job. >> the second -- number two player in the enterprise storage space, NETAPP. I think that will be a huge portion of the next generation 10 thousand to you data centers on the planet. 80% built pre-y2k. Very cost-effective solution. $30 price targ set what i'm looking at now. >> you covered the whole space. As far as the whole data storage, look at western and gate and those days exploded to which one is the most undervalued, underappreciated right now with the most upside? >> well, I would actually say a different one if that's okay. I think they have the best valuation. Out of all the companies out it has been in the press quite a bit recently as a potential candidate. We think that brocade has the best upside. >> if it wasn't a takeout candidate like everybody is throwing out, store I don't monday, what is the proper valuation right now for brocade if that was thrown out off the >> I think brocade has to trade at discount relative to the if the enterprise group trading
“… t generation 10 thousand to you data centers on the planet. 80% built pre-y2k. Very cost-effective solution. $30 price targ set what i'm looking at now. >> you covered the whole space. As far as the whole data storage, look at western and gate and those days exploded to which one is the most undervalued, underappreciated right now with the most upside? >> well, I would actually say a different one if that's okay. I think they have the best valuation. Out of all the companies out it has been in the press quite a bit recently as a potential candidate. We think that brocade has the best upside. >> if it wasn't a takeout candidate like everybody is throwing out, store I don't monday, what is the proper valuation right now for brocade if that was thrown out off the >> I think brocade has to trade at discount relative to the if the enterprise group trading …”
NetApp, Incorporated (NTAP) Discussed on CNBC's Street Signs
NetApp, Incorporated is in the news. Find out how this impacts NTAP trading on Ockham Research.
We followed suit at nasdaq. The nasdaq is up more than 1%. It's new highs across the board for apple, google, ebay and amazon. NETAPP is up by 4%. Starbucks and whole foods on new highs. Zumiez, one of the companies out with same-store sales. The sales were lower but they that's the reason why the stock is ahead by some 4%. Internally we do have a fairly strong rally today. Again, a number of new highs across the board. Where are we headed now? >> i'll take it, scott. >> bob, thanks so much. >> take a look at the s&p 500, we had the 30-year bond auction. Rick give it a "c." I think traders would agree. This affected the stock market in a negative manner. Maybe the higher yield was 4.01%. Was a little poorer than anticipated. Bottom line is this, the s&p lost maybe three or four points here in the last hour. That's important. Elsewhere though, retail sales have been terrific. Bertha will give you some details in just a few moments. I want to show you some disappointments. Look at barnes & noble here.
“… re lower but they that's the reason why the stock is ahead by some 4%. Internally we do have a fairly strong rally today. Again, a number of new highs across the board. Where are we headed now? >> i'll take it, scott. >> bob, thanks so much. >> take a look at the s&p 500, we had the 30-year bond auction. Rick give it a "c." I think traders would agree. This affected the stock market in a negative manner. Maybe the higher yield was 4.01%. Was a little poorer than anticipated. Bottom line is this, the s&p lost maybe three or four points here in the last hour. That's important. Elsewhere though, retail sales have been terrific. Bertha will give you some details in just a few moments. I want to show you some disappointments. Look at barnes & noble here. …”