NetApp, Inc. (NASDAQ:NTAP) has reported that its Executive Vice President and Chief Financial Officer, Michael J. Berry, sold a significant number of shares in the company. According to recent filings, Berry sold shares totaling over $1.9 million. The transactions, which occurred on June 25 and 26, saw Berry disposing of NetApp common shares at prices ranging from $127.04 to $127.81.
The sales were executed in two separate tranches on each day. On June 25, Berry sold 4,251 shares at an average price of $127.04 and 3,249 shares at an average price of $127.51. The following day, the CFO parted with another 3,611 shares at an average price of $127.05 and 3,889 shares at $127.81. Post these transactions, Berry's direct holdings in the company were reported to be 185,869 shares, which are owned indirectly by The Berry Family Trust.
The transactions were made under a prearranged 10b5-1 trading plan, which allows company insiders to set up a predetermined schedule for buying and selling stock at a future date. This plan was adopted by Berry on September 9, 2023, providing a systematic approach to stock trades and mitigating concerns about insider trading.
It's worth noting that the prices reported are weighted averages, and the actual sales occurred within a dollar range. For interested parties, Berry has offered to provide detailed information regarding the number of shares sold at each specific price within the provided ranges upon request.
As of the latest filing, these transactions are part of the regular disclosure of stock trades made by company executives, which are required to be reported to the Securities and Exchange Commission. NetApp investors and followers of the company's financial leadership will likely keep an eye on these developments as part of their ongoing assessment of the company's stock performance and insider confidence.
In other recent news, NetApp has made notable strides in its financial performance and strategic planning. The company's fourth-quarter results for fiscal year 2024 exceeded expectations, driven by strong demand for its All-Flash Arrays and improved margins. This success led to an increase in revenue projections of around 4.5% year-over-year for FY25E.
NetApp's all-flash array portfolio saw a 17% increase in revenue, hitting an annualized rate of $3.6 billion. The company also appointed Mike Sakalas as Vice President of U.S. Enterprise Sales, aiming to enhance strategic customer engagements and elevate the customer experience in the U.S. market.
Several analyst firms have updated their outlook on NetApp. Stifel and Susquehanna raised their price targets to $138 and $155 respectively, both maintaining a Buy rating. TD Cowen also increased its price target to $145, while Evercore ISI kept its price target at $120, both maintaining their respective ratings.
NetApp's public cloud revenues are expected to return to healthy growth in FY25E after overcoming subscription-related headwinds. The company anticipates total revenue for fiscal year 2025 to be between $6.45 and $6.65 billion, with an EPS range of $6.80 to $7.00. These are among the recent developments that continue to shape NetApp's trajectory.
InvestingPro Insights
NetApp, Inc. (NASDAQ:NTAP) has been a topic of interest for investors, especially following the recent insider transactions by its CFO, Michael J. Berry. In the context of these sales, it is important for investors to consider the company's recent performance and market valuation. NetApp currently holds a market capitalization of 26.52 billion USD, which reflects its standing in the competitive technology sector.
An important metric to consider is the company's P/E ratio, which stands at 27.24. This valuation metric, while on the higher side, is somewhat mitigated when looking at the adjusted P/E ratio for the last twelve months as of Q4 2024, which is slightly lower at 25.77. This could suggest a more favorable earnings outlook as perceived by the market. Additionally, NetApp's price to book ratio for the same period is 23.17, indicating that the market values the company substantially more than its net asset value.
InvestingPro Tips reveal that management has been actively involved in repurchasing shares, which can be a sign of confidence in the company's future prospects. Moreover, 9 analysts have revised their earnings estimates upwards for the upcoming period, further bolstering investor optimism. Notably, NetApp has also been a reliable dividend payer, having maintained dividend payments for 12 consecutive years, with a current dividend yield of 1.62%. This consistency in returning value to shareholders is a significant consideration for income-focused investors.
For those looking for more in-depth analysis and additional insights, there are 15 more InvestingPro Tips available for NetApp at InvestingPro. To enhance your investment research, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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