NetApp is UNDERVALUED at 96.62 per share with modest projections ahead. Over 94.0% of NetApp shares are owned by
institutional investors. Institutional ownership of NetApp Inc refers to the amount of NetApp Inc equity owned by mutual funds, pension funds, insurance companies, investment firms, foundations, or other large entities that manage money on behalf of others. Check out our latest analysis of NetApp, including its current
ownership diagnostics.
There are currently many different techniques concerning forecasting the market as a whole as well as
predicting future values of individual securities such as NetApp Inc. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the
market sentiment and impact your forecasting results.
Predictive Modules for NetApp
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of NetApp's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as NetApp. Your research has to be compared to or analyzed against NetApp's peers to derive any actionable benefits. When done correctly, NetApp's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in NetApp Inc.
How important is NetApp's Liquidity
NetApp
financial leverage refers to using borrowed capital as a funding source to finance NetApp Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. NetApp financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to NetApp's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of NetApp's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between NetApp's total debt and its cash.
NetApp Gross Profit
NetApp Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing NetApp previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show NetApp Gross Profit growth over the last 10 years. Please check NetApp's
gross profit and other
fundamental indicators for more details.
Breaking down NetApp Indicators
The small decline in market price for the last few months may encourage insiders to take a closer look at the firm as it is trading at a share price of
87.32 on slow start in trading volume. The company executives did not add much value to NetApp Inc investors in
October. However, diversifying your holdings with NetApp or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 1.49. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.
Returns Breakdown
| Return on Investment | 40.13 |
| Return on Assets | 7.33 |
| Return on Equity | 169.93 |
| Return Capital | 0.25 |
| Return on Sales | 0.15 |
Another setback for NetApp insiders
Recent kurtosis is at 0.96. NetApp Inc has relatively low volatility with skewness of 0.05 and kurtosis of 0.96. However, we advise all investors to independently investigate NetApp Inc to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure NetApp's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact NetApp's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
NetApp Implied Volatility
NetApp's implied volatility exposes the market's sentiment of NetApp Inc stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if NetApp's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that NetApp stock will not fluctuate a lot when NetApp's options are near their expiration.
Our Takeaway on NetApp Investment
Although many other companies in the computer hardware industry are either recovering or due for a correction, NetApp may not be performing as strong as the other in terms of long-term growth potentials. With an optimistic outlook on your 90 days horizon, it may be a good time to buy new shares of NetApp or increase your existing holdings in the Stock as it seems the potential growth has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to NetApp.
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Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of NetApp Inc. Please refer to our
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