According to CapitolTrades.com, a platform offering data on politicians’ trades, Doug Lamborn, an American politician and a U.S. representative from Colorado’s 5th congressional district, recently traded shares of NetApp (NASDAQ:NTAP). Per the data, Lamborn bought NetApp stock in April, and the transaction had a size range of $1-$15K.
Using TipRanks’ data, let’s find out what’s on the horizon for NTAP stock.
What’s the Prediction for NTAP Stock?
NetApp is a cloud-based, data-centric company. While Lamborn bought the stock, the weakening IT (Information Technology) spending amid macro headwinds and continued cloud cost optimization are weighing on the performance of NTAP.
It has witnessed smaller deal sizes with longer selling cycles. Also, some deals were pushed out as enterprises cut back or optimized cloud spending. As the company struggled to lift sales, it reduced its workforce to cushion margins.
While the uncertain economic environment poses challenges, secular sector trends like digital and cloud transformations provide a solid base for long-term growth.
Given the short-term challenges, Wall Street analysts remain sidelined on NTAP stock. Further, Bank of America Securities analyst Wamsi Mohan downgraded NetApp to Sell from Hold on April 20. The analyst expects a weaker demand environment and negative leverage from lower revenue to hurt NTAP’s financials.
Overall, it has received five Buy, eight Hold, and two Sell recommendations for a Hold consensus rating. Moreover, analysts’ average price target of $70.60 implies 12.94% upside potential.
Keeping track of politicians’ trades could benefit retail investors. Also, investors can make good use of TipRanks’ Experts Center tool to make informed investment decisions. As for the NTAP stock, analysts’ Hold consensus rating, weakness in demand, and an uncertain economic environment might restrict the upside in the short term.