NetApp (NASDAQ:NTAP) is a provider of storage systems and data management solutions for IT infrastructures.
Insider selling during the last 30 days
Here is a table of NetApp's insider activity during the last 30 days.
|Name||Title||Trade Date||Shares Sold||Option Exercise & Sale||Rule 10b5-1||Current Ownership||Decrease In Ownership|
|Robert Wall||Director||June 26||80,000||Yes & No||No||90,571
shares + 110,000 options
|George Shaheen||Director||June 25||20,000||Yes||No||4,466
shares + 110,000 options
|Thomas Georgens||CEO||June 5||23,300||No||No||10,329
shares + 778,646 options
|Nicholas Noviello||CFO||June 3-4||11,519||No||Yes||21,437
shares + 168,031
|Daniel Warmenhoven||Director||June 2||18,423||Yes||Yes||2,170,935
shares + 1,203,703
There have been 153,242 shares sold by insiders during the last 30 days. Nicholas Noviello, and Daniel Warmenhoven sold their shares pursuant to a Rule 10b5-1 plan. More details about the Rule 10b5-1 trading plan can be found from this link.
Insider selling by calendar month
Here is a table of NetApp's insider activity by calendar month.
|Month||Insider selling / shares||Insider buying / shares|
There have been 2,696,760 shares sold and there have been zero shares purchased by insiders since January 2013. The month of June has seen the most insider selling this year.
NetApp reported the fiscal 2014 full-year, which ended April 25, financial results on May 21 with the following highlights:
|Net income||$637.5 million|
The five insiders sold their shares after these results.
NetApp has negative revenue growth currently.
NetApp's fiscal 2015 first-quarter guidance is as follows:
|Qtrly Rev Growth (yoy):||-0.04||0.02||-0.01|
|PEG (5 yr expected):||0.99||1.27||2.00|
NetApp has the second-highest P/S ratio among these three companies.
Here is a table of these competitors' insider activities this year.
|Company||Insider buying / shares||Insider selling / shares|
Only NetApp has seen intensive insider selling during the last 30 days.
There have been five different insiders selling NetApp and there have not been any insiders buying NetApp during the last 30 days. Two of these five insiders decreased their holdings by more than 10%. NetApp has an insider ownership of 0.69%.
NetApp has a $23 price target from the Point & Figure chart. I believe there is an opportunity for a short entry with the $23 price target. I would place a stop loss at $46, which is the 52-week high. The three main reasons for the proposed short entry are a bearish Point & Figure chart, negative revenue growth, and the intensive insider-selling activity.
Disclosure: The author has no positions in any stocks mentioned, but may initiate a short position in NTAP over the next 72 hours. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.