NTAP Recovers Pandemic Losses on Profit Beat, Q3 Outlook

To follow, no fewer than nine analysts raised their price targets

Deputy Editor

Dec 2, 2020 at 10:57 AM

NetApp Inc (NASDAQ:NTAP) is trading up 9.9% at $59.54, after a fiscal second-quarter beat and strong third-quarter outlook. To follow, no fewer than nine analysts raised their price targets, with the highest from Credit Suisse and Northland Capital, which both upped to $65.

After its March lows, NTAP's highest rallies were capped by the $49 region, until the stock bounced off its 10-day moving average at the start of November. Today, the stock is jumping to highest level since February, but remains down 6.6% year-to-date.

There is plenty of room for upgrades amongst the brokerage bunch, with 13 of the 16 analysts in coverage at a "hold" or worse rating. Meanwhile, though short interest has started to taper off, it still accounts for 6.7% of the stock's available float, which would take six days to cover at NetApp stock's average pace of trading. A further unwinding of these bearish bets could act as a tailwind moving forward.

Over in the options pits, today's positive price action has traders taking notice. So far, 7,807 calls and 2,607 puts have crossed the tape -- 13 times what's typically seen at this point with options volume pacing for the top percentile of its annual range. The weekly 12/4 60-strike call is the most popular, with new positions are being opened.

Follow @Schaeffers

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released!