NTAP Recovers Pandemic Losses on Profit Beat, Q3 Outlook

NetApp Inc (NASDAQ:NTAP) is trading up 9.9% at $59.54, after a fiscal second-quarter beat and strong third-quarter outlook. To follow, no fewer than nine analysts raised their price targets, with the highest from Credit Suisse and Northland Capital, which both upped to $65. 

After its March lows, NTAP's highest rallies were capped by the $49 region, until the stock bounced off its 10-day moving average at the start of November. Today, the stock is jumping to highest level since February, but remains down 6.6% year-to-date.

There is plenty of room for upgrades amongst the brokerage bunch, with 13 of the 16 analysts in coverage at a "hold" or worse rating. Meanwhile, though short interest has started to taper off, it still accounts for 6.7% of the stock's available float, which would take six days to cover at NetApp stock's average pace of trading. A further unwinding of these bearish bets could act as a tailwind moving forward. 

Over in the options pits, today's positive price action has traders taking notice. So far, 7,807 calls and 2,607 puts have crossed the tape -- 13 times what's typically seen at this point with options volume pacing for the top percentile of its annual range. The weekly 12/4 60-strike call is the most popular, with new positions are being opened.