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
facebook twitter linkedin


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. 

 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Schaeffer's Daily Bulletin Offer
 


 


 
Special Offers from Schaeffer's Trading Partners