SUNNYVALE, CA—George Kurian, CEO of NetApp, Inc. (NASDAQ:NTAP), has sold a significant portion of his holdings in the company. According to a recent SEC filing, Kurian sold a total of 8,500 common shares on October 21, 2024, amounting to approximately $1.07 million. The sale was executed under a Rule 10b5-1 trading plan, which Kurian adopted on December 19, 2023.
The transactions were carried out in two blocks. The first block involved the sale of 3,279 shares at a weighted average price of $125.71, with actual sale prices ranging from $125.59 to $125.97. The second block consisted of 5,221 shares sold at a weighted average price of $126.36, with prices ranging from $126.05 to $126.63.
Following these transactions, Kurian's direct ownership stands at 292,778 shares. These sales are part of a pre-arranged trading plan, allowing executives to sell a predetermined number of shares at specified times to avoid any potential conflicts of interest.
In other recent news, NetApp has been making strides in strategic partnerships and leadership changes. The company reported an 8% year-over-year increase in revenue for the first quarter of fiscal year 2025, along with record-breaking operating margin and earnings per share. Following these results, NetApp revised its fiscal year revenue and profit outlook upwards.
NetApp announced expanded collaborations with Google (NASDAQ:GOOGL) Cloud, NVIDIA (NASDAQ:NVDA), and Amazon (NASDAQ:AMZN) Web Services, aiming to enhance AI security, data management, and cloud operations respectively. The company also made significant leadership changes, appointing Gus Shahin as Executive Vice President of Business Technology and Operations, while CFO Mike Berry announced his retirement at the end of the fiscal year.
NetApp's shareholders approved a significant amendment to its 2021 Equity Incentive Plan, aligning it with current compensation governance standards. Analyst firms Loop Capital and TD Cowen expressed confidence in NetApp's progress, upgrading and reiterating a Buy rating respectively. These are some of the recent developments at NetApp.
InvestingPro Insights
To provide additional context to George Kurian's recent stock sale, it's worth examining some key financial metrics and insights from InvestingPro for NetApp, Inc. (NASDAQ:NTAP).
NetApp's market capitalization currently stands at $24.39 billion, reflecting its significant presence in the Technology Hardware, Storage & Peripherals industry. The company's P/E ratio of 22.68 suggests that investors are willing to pay a premium for its earnings, possibly due to its strong market position and growth prospects.
One InvestingPro Tip highlights that NetApp has maintained dividend payments for 12 consecutive years, demonstrating a commitment to shareholder returns. This is further supported by the company's current dividend yield of 1.75% and a dividend growth rate of 4.0% over the last twelve months.
Another noteworthy InvestingPro Tip indicates that management has been aggressively buying back shares. This strategy, combined with Kurian's recent stock sale, may reflect the company's confidence in its valuation and future prospects.
NetApp's financial performance has been robust, with a revenue of $6.377 billion in the last twelve months and a strong gross profit margin of 71.11%. The company's EBITDA growth of 21.41% over the same period is particularly impressive, suggesting improving operational efficiency.
Investors looking for a more comprehensive analysis can access additional InvestingPro Tips, with 7 more insights available on the platform. These tips could provide valuable context to NetApp's financial health and market position, helping to interpret executive actions like Kurian's stock sale.
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