Insider Buying

Insider Buying Report: NetApp Inc (NTAP:US)

NetApp Inc
(NTAP:US)
12 months:
-18.96%
Activity:
Bullish
Pattern:
Purchase from CFO
News:
Q4 results
NetApp Inc
(NTAP:US)
12 months:
-18.96%
Activity:
Bullish
Pattern:
Purchase from CFO
News:
Q4 results

CFO purchases can be very informative insider trades. CFOs have considerable insights into their firms’ financial activities, and some studies have found that these insiders earn higher profits following their purchases of company shares than CEOs do.

In this report, we are going to highlight a CFO purchase at NetApp Inc (NTAP:US). NetApp is a technology company that offers industry-leading cloud data services, storage systems, and software. Founded in 1992, its aim is to help businesses get the most out of their data. The company is listed on the NASDAQ Global Select Market and currently has a market capitalization of $15.08 billion.

NetApp Inc: Insider Buying

Our data shows that on June 3, NetApp’s CFO Michael Berry purchased 5,000 shares at a price of $72.04 per share. This trade cost the insider $360,217 and increased his holding to 95,875 shares.

Tech Industry Veteran

Mr. Berry has considerable experience in the technology space. Before joining NetApp in March 2020, he was Executive Vice President and CFO at McAfee. Before McAfee, he was Executive Vice President, CFO, and COO at FireEye. Given his background, he is likely to have an excellent understanding of his company’s prospects. It’s worth noting that his last stock purchase, in late 2020, was timed very well.

What caught our attention here is the size of the purchase from Mr. Berry. The fact that the insider has spent $360,000 of his own money on shares suggests that he is very confident the stock is set to move higher.

Solid Growth

NetApp recently posted a solid set of Q4 fiscal 2022 results.

For the period, net revenue came in at $1.68 billion, up 8% year on year. Meanwhile, NetApp Public Cloud annualized revenue run rate (ARR) increased 68% year-over-year to $505 million. Non-GAAP earnings per share came in at $1.42, up from $1.17 a year earlier, and ahead of the consensus forecast of $1.28.

Looking ahead, the company said that it expects revenue growth of 6-8% for fiscal year 2023 and that Public Cloud ARR is expected to end the year between $780 million and $820  Full-year earnings are expected to be between $5.40 and $5.60, versus $5.28 in fiscal 20million.22.

“The strong fundamentals of our business, including our alignment to customer priorities, strong balance sheet, and prudent operational management put NetApp in a position of strength as we scale our Public Cloud services while continuing to drive growth in our Hybrid Cloud solutions,” commented CEO George Kurian.

In light of these solid results, we see the insider buying here as a bullish indicator.

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