On September 12, 2023, George Kurian, the CEO of NetApp Inc (NTAP, Financial), sold 4,500 shares of the company. This move is part of a broader trend of insider selling at NetApp Inc, which we will explore in this article.
George Kurian has been with NetApp Inc since 2011, serving in various roles before becoming CEO in 2015. Under his leadership, the company has focused on data management and cloud services, helping businesses manage and leverage their data more effectively.
NetApp Inc is a multinational technology company based in Sunnyvale, California. The company provides software, systems, and services to manage and store data, including its proprietary Data ONTAP operating system. NetApp's products and services are designed to help businesses achieve digital transformation, enabling them to manage and analyze their data in a hybrid cloud environment.
Over the past year, the insider has sold a total of 45,000 shares and purchased 0 shares. This trend of insider selling is further illustrated in the following image:
The insider transaction history for NetApp Inc shows that there have been 0 insider buys and 23 insider sells over the past year. This could indicate that insiders believe the stock is currently overvalued, prompting them to sell their shares.
On the day of the insider's recent sell, shares of NetApp Inc were trading for $78.37 apiece, giving the stock a market cap of $16.37 billion. The price-earnings ratio is 14.17, which is lower than the industry median of 21.98 and lower than the company’s historical median price-earnings ratio. This suggests that the stock is undervalued compared to its peers and its own historical average.
However, with a price of $78.37 and a GuruFocus Value of $75.56, NetApp Inc has a price-to-GF-Value ratio of 1.04. This means the stock is fairly valued based on its GF Value. The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance from Morningstar analysts.
In conclusion, the insider's recent sell of NetApp Inc shares, along with the broader trend of insider selling at the company, could indicate that insiders believe the stock is currently fairly valued. However, with a price-earnings ratio below the industry median and the company’s historical average, the stock could still present a good value opportunity for investors.
