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4-Traders Homepage  >  Equities  >  Nasdaq  >  NetApp Inc.    NTAP

Analysis summary4-Traders Strategies 

Good time to sell off

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02/23/2012 | 02:17pm
Opinion : Bearish under USD 44
Target price : USD 39
Stop loss: USD 44.5
Computer Hardware

NetApp is a leading provider of unified storage solutions, which span both block and file based solutions in a single system.

In the last earnings release the company reported 3Q 2012 results in line with analysts’ estimates. For the quarter ended in January NetApp’s revenue rose 21% to $1.57 billion a year earlier. These numbers allowed company to deliver ninth consecutive quarter over 20% year over year revenue growth. Therefore, the third-quarter earnings fell 36% due principally to higher charges and weaker margins.
According to Thomson-Reuters’ consensus, the stock is worth expensive. In fact price earnings ratio for this year is estimated at 28.06; also the “enterprise value / revenue” is high with estimated coefficient for this year at 2.06. These value’s levels are making the security more expensive than industry average.

Technically, the share is close to short and mid-term resistance. This area between 43 and 44 USD could stop the bullish trend seen since early January. Also in weekly data the share is in contact with a long-term resistance at 43.42 USD. The bearish trend could allow share to fill in the gap, which is formed last November. A bullish gap is formed on the occasion of earnings releases. The proximity of resistance levels could push the share in a downward trend in order to fill in the new gap.

Both technical pattern and high value’s fundamental levels, allow us to imagine a bearish trend. We could fix the target price around 40 USD short-term support and moving average 20 periods’ area. We suggest a stop loss above 44 USD, the cross of this zone can allow to continue a bullish trend.

NetApp Inc. : Good time to sell off

© Zonebourse.com 2012
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Provides data management and storage solutionsNetApp, Inc. engages in the provision of software, systems, and services for the management and storage of customer data.The company's products include hybrid, enterprise all-flash, and cloud storages.Its patented unified scale-out fabric-attached... 
Computer Hardware
More about the company
Financials ($)
Sales 2018 5 631 M
EBIT 2018 1 036 M
Net income 2018 627 M
Finance 2018 2 722 M
Yield 2018 1,98%
P/E ratio 2018 16,60
P/E ratio 2019 15,62
EV / Sales 2018 1,45x
EV / Sales 2019 1,36x
Capitalization 10 903 M
More Financials
Duration : Period : Day
NetApp Inc. Technical Analysis Chart | NTAP | US64110D1046 | 4-Traders
Duration : Period : Week
NetApp Inc. Technical Analysis Chart | NTAP | US64110D1046 | 4-Traders
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