Not a good buy right now for an impatient entry: trend structure is still bearish (SMA_200 > SMA_20 > SMA_5) and near-term pattern stats skew negative (next month bias).
Options sentiment is constructive (low put/call ratios), but that alone isn’t enough to override the bearish moving-average stack and the recent high-profile downgrade.
Insider activity is a key red flag (selling up sharply), reducing confidence in an immediate upside move.
If already owned: holding is reasonable into the 97.9–95.4 support zone, but I would not add aggressively until NTAP reclaims ~100.4 and holds it.
Technical Analysis
Price/Trend: Bearish trend structure with moving averages stacked negatively (SMA_200 > SMA_20 > SMA_5), implying rallies may face overhead supply.
Momentum: MACD histogram at +0.245 and expanding suggests improving momentum, but it’s happening within a broader bearish MA regime (early/fragile turn).
RSI: RSI_6 ~49 (neutral) shows no oversold bounce signal and no strong momentum confirmation.
Key levels: Pivot ~97.897 (current price 98.84 slightly above). Resistance R1 ~100.394 (near-term line in the sand). Supports S1 ~95.401 then S2 ~93.859.
Quant pattern read-through: Similar-pattern probabilities indicate mild downside drift (-0.22% next day, -1.29% next week, -6.76% next month), which argues against chasing now.
Options Data
Bullish
Open Interest Put-Call Ratio
Bullish
Option Volume Put-Call Ratio
Sentiment: Put/call ratios are low (OI PCR 0.61; Volume PCR 0.22), typically indicating bullish positioning/less demand for puts.
Activity: Today’s option volume is very elevated vs 30-day average (~454.88%), indicating a meaningful sentiment/positioning event.
Volatility: IV (30d 39.97) is near HV (40.5) with IV percentile ~62, suggesting options are not “cheap,” but also not extremely dislocated.
Takeaway: Options flows lean bullish, but given the bearish MA structure, this reads more like tactical dip-buying/speculation than a confirmed trend reversal.
Technical Summary
Sell
7
Buy
7
Positive Catalysts
and Northland Outperform (PT
highlighted all-flash and public cloud momentum.
Neutral/Negative Catalysts
Recent major downgrade: Morgan Stanley cut to Underweight with PT 89 (from 117), citing weak hardware budget growth and a more defensive hardware stance.
Insider selling: Insiders are selling, with selling amount up ~2805% over the last month—negative near-term signal.
No supportive news flow in the past week to counter the macro/IT-spend caution narrative.
Market backdrop: S&P 500 down ~1.08% today, adding pressure to risk appetite.
Financial Performance
Latest reported quarter: 2026/Q2.
Revenue: $1.705B, +2.83% YoY (modest growth).
Net income: $305M, +2.01% YoY (steady profitability).
EPS: 1.51, +6.34% YoY (earnings growing faster than revenue, helped by margins/efficiency).
Recent trend: Ratings/targets were mostly supportive/raising into late 2025 (Northland upgrade to Outperform PT 137; Barclays raised PT to 134; UBS/BofA/Wells raised targets but stayed Neutral/Equal Weight).
Latest change (most important): Morgan Stanley (2026-01-20) downgraded to Underweight and cut PT to 89, emphasizing a more defensive view on IT hardware spending.
Wall Street pros: Margin durability, all-flash strength, and public cloud growth recovery narrative.
Wall Street cons: Macro-driven hardware budget caution, slower near-term top-line acceleration, and region/public sector headwinds mentioned by more cautious coverage.
Wall Street analysts forecast NTAP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NTAP is 124.21 USD with a low forecast of 110 USD and a high forecast of 137 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
19 Analyst Rating
Wall Street analysts forecast NTAP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NTAP is 124.21 USD with a low forecast of 110 USD and a high forecast of 137 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Buy
13 Hold
0 Sell
Moderate Buy
Current: 99.590
Low
110
Averages
124.21
High
137
Current: 99.590
Low
110
Averages
124.21
High
137
Morgan Stanley
Erik Woodring
Equal Weight -> Underweight
downgrade
$117 -> $89
AI Analysis
2026-01-20
Reason
Morgan Stanley
Erik Woodring
Price Target
$117 -> $89
AI Analysis
2026-01-20
downgrade
Equal Weight -> Underweight
Reason
Morgan Stanley analyst Erik Woodring downgraded NetApp to Underweight from Equal Weight with a price target of $89, down from $117. The firm's chief investment officer survey indicated the the slowest hardware budget growth in 15 years. Resellers are expecting an "elastic demand response" to input cost inflation, which warrants a more defensive IT hardware position despite secular AI tailwinds, the analyst tells investors in a research note. Morgan Stanley has turned "more defensive," saying its recent survey work "signals the perfect storm of cautionary factors emerging."
Northland
Market Perform -> Outperform
upgrade
$120 -> $137
2025-11-26
Reason
Northland
Price Target
$120 -> $137
2025-11-26
upgrade
Market Perform -> Outperform
Reason
Northland upgraded NetApp to Outperform from Market Perform with a price target of $137, up from $120.
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