Exploring NetApp, Inc. (NTAP) Investor Profile: Who’s Buying and Why?

You're looking at NetApp, Inc. (NTAP) because the data infrastructure story is compelling, but you need to know who's really driving the stock, and honestly, it's mostly the big money. Fiscal Year 2025 was a record year, with net revenues hitting $6.57 billion and non-GAAP earnings per share (EPS) climbing to $7.25, a performance defintely fueled by their all-flash array run rate soaring to $4.1 billion; that kind of growth gets attention, and it's why institutional ownership sits at a staggering 96.34% of shares outstanding. Think about that: almost all the float is held by firms like Vanguard Group Inc. and Blackrock, Inc., which collectively own tens of millions of shares-Vanguard alone held over 27.1 million shares as of September 2025. So, when the company is making a major pivot to Public Cloud services, generating $416 million in first-party revenue in FY2025, what are these giants buying into, and what are the near-term risks they are pricing in right now?

Who Invests in NetApp, Inc. (NTAP) and Why?

If you're looking at NetApp, Inc. (NTAP), the first thing you need to understand is that this is an institutional stock. The vast majority of its shares-around 92.17%-are held by large funds, not by individual retail investors. That means the stock's price movements are defintely driven by the portfolio decisions of massive asset managers and hedge funds, not the chatter on social media.

The investor base breaks down into three main camps: passive index funds, active mutual funds and institutions, and the more tactical hedge funds. The company's stability and consistent performance make it a core holding for many of the world's largest investment firms.

• Institutional Investors: Hold approximately 92.17% of shares.
• Retail/Individual Investors: Own a smaller but still significant portion, around 19.92% of shares.
• Insiders: Company executives and directors hold a minimal stake, around 0.5%.

The Anchor Holders: Index Funds and Active Managers

The largest shareholders are the titans of the asset management world, primarily passive and large active funds. Firms like Vanguard Group Inc, BlackRock, Inc., and State Street Corp top the list. These managers are not speculating on a quick turnaround; they are long-term holders.

Their motivation is simple: NetApp, Inc. is a stable, profitable component of the S&P 500 and various technology indices. For a firm like BlackRock, Inc., holding NetApp, Inc. is a requirement to track the index accurately. They are buying the market, and NetApp, Inc. is a piece of that market. This passive buying provides a consistent floor for the stock, making it less volatile than companies with high retail or concentrated hedge fund ownership.

Here's a quick look at the major players and their core strategy:

Investment Motivations: Growth, Income, and AI

Investors are attracted to NetApp, Inc. by a dual-pronged thesis: a stable income stream combined with targeted growth in high-margin areas. This isn't a pure growth stock, but it's not a sleepy utility either. It's a 'Growth-at-a-Reasonable-Price' (GARP) play.

The income component is solid. The company returned $1.57 billion to stockholders in fiscal year 2025 through share repurchases and cash dividends. The quarterly cash dividend of $0.52 per share, which translates to a yield of about 1.85% as of November 2025, appeals directly to income-focused funds and retirees. What this estimate hides is the 10-year history of increasing the dividend, a huge green flag for dividend growth investors.

On the growth side, the focus is on the pivot to cloud and all-flash storage, which addresses the massive enterprise AI (Artificial Intelligence) and data management trends. This is the future. For fiscal year 2025, Public Cloud services revenue jumped 43% year-over-year to $416 million, and the all-flash array annualized net revenue run rate hit a record $4.1 billion, up 14% year-over-year. This strong performance in its growth segments validates the strategic shift. You can read more about the company's core business model here: NetApp, Inc. (NTAP): History, Ownership, Mission, How It Works & Makes Money

Active Strategies: The Hedge Fund Calculus

Hedge funds and other tactical investors are using a different playbook. Their strategy is often a short-to-medium-term bet on operational efficiency and market share gains. They are looking at the company's impressive profitability: NetApp, Inc. achieved a non-GAAP operating profit of $1.86 billion and a non-GAAP operating margin of 28% in fiscal year 2025.

However, the hedge fund activity in 2025 was a mixed bag, showing a classic tug-of-war. In the first half of 2025, large players like BlackRock, Inc. and ARROWSTREET CAPITAL, LIMITED PARTNERSHIP were reducing their positions, selling millions of shares. But at the same time, other large managers like BOSTON PARTNERS and PACER ADVISORS, INC. were making massive additions, sometimes increasing their position by over 1,000%. This suggests a divergence in opinion: some see a ceiling on growth, while others see a value opportunity based on the strong cash flow and market position.

The key takeaway for you is that the stock is a battleground between passive stability and active disagreement. The long-term money is anchored, but the short-term money is actively trading the narrative around cloud adoption and AI infrastructure demand.

Institutional Ownership and Major Shareholders of NetApp, Inc. (NTAP)

You're looking at NetApp, Inc. (NTAP) and trying to figure out who the big money trusts with their capital. The direct takeaway is this: institutional investors-the mutual funds, pension funds, and asset managers-own a massive chunk of the company, signaling a strong, albeit complex, vote of confidence in its data storage and cloud transition strategy. Their collective stake is the ballast that keeps the stock steady, but their recent trading shows a clear divergence of opinion on the near-term outlook.

As of the end of the third calendar quarter of 2025, institutional ownership in NetApp, Inc. stood at approximately 97.57% of the total shares outstanding. This is a high concentration, meaning the stock's price movements are defintely driven by the decisions of these large players, not individual retail traders. The total value of these institutional holdings was around $21,315 million.

Here's the quick math: nearly all of the tradable stock is in the hands of professionals who have done deep due diligence on the company's shift to hybrid-cloud data services. For a deeper dive into the company's foundation, you can check out NetApp, Inc. (NTAP): History, Ownership, Mission, How It Works & Makes Money.

Top Institutional Investors and Their Stakes

The largest institutional holders are familiar names in the financial world, primarily passive index fund managers and large active asset managers. These are the 'universal owners' who hold diversified stakes across the entire market, giving them significant influence over corporate governance (the system of rules, practices, and processes by which a company is directed and controlled).

The top five institutional investors alone controlled millions of shares as of September 30, 2025, representing a substantial portion of the company's equity.

Recent Shifts: Mixed Signals on the Near-Term

The recent activity is what you need to focus on. While the total institutional ownership remains high, the last quarter of filings shows a distinct split between major holders. This isn't a unified rush for the exits, but it's not a full-throated endorsement either.

In the most recent quarter, 435 institutions increased their positions, buying a net total of 16,878,228 shares. But, on the flip side, 393 institutions decreased their stakes, selling 14,301,178 shares. This mixed activity tells you that investors are interpreting NetApp, Inc.'s transition and spending environment differently.

For example, the large passive managers like Vanguard Group Inc. and Blackrock, Inc. slightly trimmed their positions, reducing their holdings by -1.91% and -3.551% respectively. This is often due to rebalancing within their index funds (Exchange-Traded Funds, or ETFs) rather than a bearish view on the company itself. However, the active manager Primecap Management Co/Ca/ made a more significant cut, decreasing their stake by -13.762%. That's a clear move away from the stock.

But then you have the buyers. Jpmorgan Chase & Co. made a huge move, increasing its position by a staggering 78.912%, adding 1,781,340 shares. Wellington Management Group Llp also added significantly, boosting its stake by 17.117%. These are active managers betting that the stock is undervalued and the future growth from their cloud data services business will pay off.

The Impact of Institutional Clout on Strategy

The sheer volume of institutional money in NetApp, Inc. means these investors are not just passive shareholders; they are active monitors of management. High institutional ownership generally provides a floor of stability for the stock, reducing day-to-day volatility because these firms tend to be long-term holders.

• Drive Governance: They push for better corporate governance, including more independent directors on the board and improved transparency.
• Influence Capital Allocation: Their votes directly influence major decisions, from mergers and acquisitions to the company's capital allocation strategy, often favoring increased shareholder payouts (like dividends or buybacks) over large capital expenditures (capex).
• Demand Accountability: Large investors, especially the active ones, will engage with NetApp, Inc. management on strategic direction, particularly around the shift to cloud and subscription-based revenue models, which are critical for future valuation multiples.

The mixed buying and selling, especially the big increase from Jpmorgan Chase & Co. against the large decrease from Primecap Management Co/Ca/, indicates a healthy debate among smart money. It's not a consensus trade. Your action item is to look past the index fund movements and focus on the thesis of the active buyers: are NetApp, Inc.'s cloud data services revenue and margins improving enough to justify the new capital flowing in? That's the real question that changes the decision.

Key Investors and Their Impact on NetApp, Inc. (NTAP)

If you're looking at NetApp, Inc. (NTAP), you are defintely looking at a stock where the institutions call the shots. Institutional investors-the big mutual funds, pension funds, and asset managers-own a staggering portion of the company, holding around 92.17% of the stock. This means their collective buying and selling drives the stock price, not the retail crowd.

The investor base isn't dominated by a single activist fund pushing for a breakup, which is common in mature tech. Instead, the ownership is largely passive. The top shareholders are the giants of the indexing world, which is a sign of stability but also less pressure for radical change. They invest because NetApp, Inc. is a core component of major indices like the S&P 500, not necessarily because they see a short-term activist play.

Here's the quick math: with institutional investors holding approximately 225,587,016 shares, any shift in their sentiment, even a small one, creates a massive wave in the market. That's why earnings misses or strategic pivots can cause a sharp stock reaction.

• Vanguard Group Inc. is the largest holder.
• BlackRock, Inc. is a close second, representing significant passive capital.
• State Street Corp rounds out the top three.

The Passive Giants and Their Recent Moves

The top investors are mostly index fund managers, which means their influence is less about boardroom battles and more about capital flow. They tend to file Schedule 13G reports with the SEC, indicating a passive investment of over 5%. They are long-term holders, but their sheer size makes their quarterly moves critical data points for any investor.

Looking at the most recent filings from the third quarter of 2025, we see a clear pattern of slight de-risking among the largest holders. For example, Vanguard Group Inc. reduced its position by 529,551 shares, and BlackRock, Inc. trimmed its stake by 782,006 shares. This selling pressure from the biggest names often follows mixed signals from the company, especially after NetApp, Inc. reported Q2 EPS of $1.19, missing the consensus estimate of $1.54.

Still, not everyone was selling. A number of funds used the market volatility as a buying opportunity, signaling confidence in the company's strategic segments. Boston Partners, for instance, added 1,536,339 shares in Q2 2025, an increase of 108.9%. This buying suggests they are focused on the company's solid fiscal year 2025 performance, where total revenue hit a record $6.57 billion, and high-growth areas like Keystone (as-a-service) revenue surged 54%.

Note: Boston Partners' exact Q3 holding is not explicitly listed in the top 10, but their Q2 buying was a major move.

Insider Selling and the Risk Map

A factor you need to watch is the insider activity. While institutional ownership is high, insider ownership is quite low, at only about 0.28%. Over the last quarter, company insiders sold approximately 20,029 shares, valued around $2.34 million. This is a small slice of the overall volume, but it's a data point that matters.

Honesty, when the executives are selling, it doesn't send a great signal, even if it's for tax purposes or Restricted Stock Unit (RSU) vesting. For example, EVP Elizabeth M. O'Callahan sold 1,000 shares in September 2025 for a total value of $123,670.00. This kind of consistent selling, even small amounts, suggests they are monetizing their equity rather than accumulating more. It's a classic near-term risk sign that suggests management sees the stock as fairly valued, at best.

The opportunity for NetApp, Inc. is clearly mapped to its push into the cloud and AI-ready infrastructure, which you can read more about in the Mission Statement, Vision, & Core Values of NetApp, Inc. (NTAP). The institutional investors buying in, like Boston Partners, are betting that the growth in All Flash revenue (up 14% in FY2025) and Cloud Storage revenue (up 43% in FY2025) will accelerate and justify the company's FY 2026 EPS guidance of $7.60-$7.90.

Market Impact and Investor Sentiment

You're looking at NetApp, Inc. (NTAP) and trying to figure out if the big money is buying or selling, and honestly, the picture is mixed. The dominant force is institutional money-mutual funds, pension funds, and major asset managers-who collectively own about 92.17% of the stock. That's a huge percentage, meaning their collective sentiment drives the stock's direction, but right now, they're in a tug-of-war.

While the overall institutional ownership is high, recent activity shows a split. As of the third quarter of 2025, large institutional investors have been net sellers, indicating a cautious or even bearish stance. But, to be fair, smaller retail investors are showing a positive trend, with a 51.88% inflow ratio in September 2025. It's a classic battle between short-term retail optimism and longer-term institutional skepticism about the data storage cycle.

• Vanguard Group Inc. holds the largest stake: 27,198,567 shares.
• BlackRock, Inc. is a close second with 21,237,798 shares.
• State Street Corp holds over 10 million shares.

Stock Reactions to Investor Moves

The market has been volatile around key news. For instance, in the second quarter of fiscal year 2026, the company reported Earnings Per Share (EPS) of $1.19, which missed the analyst consensus of $1.54. That kind of earnings miss, even with revenue of $1.56 billion being roughly in line, often triggers a pullback, and the stock has retreated nearly 6% over the past month.

Still, the longer view shows resilience. The stock gained 20.4% over the six months leading up to November 2025, largely on the back of optimism around their flash storage and cloud offerings. This is what happens when a few funds make big, concentrated moves: they can temporarily override the broader market sentiment. For example, SG Americas Securities LLC boosted its stake by a massive 1,081.8% in Q2, buying 267,985 additional shares. Conversely, Los Angeles Capital Management LLC cut its position by 98.9% in the same quarter, selling over 307,000 shares. That's a defintely whipsaw environment.

Analyst Perspectives and Key Investor Drivers

Wall Street analysts are leaning toward a consensus of 'Moderate Buy,' which is a good sign for long-term holders. The mean price target sits at $121.73, suggesting an 8.2% upside from the current price level. This valuation is heavily influenced by the company's strong positioning in the Artificial Intelligence (AI) data infrastructure space, a major tailwind that is driving demand for unified, high-performance storage.

Analysts are projecting strong financial performance for the current fiscal year. For the full fiscal year 2025, the consensus Non-GAAP EPS is estimated at $7.77, with total revenue expected to hit around $6.76 billion. The key reason major investors are maintaining or increasing their positions is the company's ability to secure AI wins-they secured over 125 AI wins in Q1, more than doubling year-over-year. That's the real story. You can learn more about the fundamental drivers of this business here: NetApp, Inc. (NTAP): History, Ownership, Mission, How It Works & Makes Money.

Here's the quick math on the forward view:

What this estimate hides is the risk from insider selling; CEO George Kurian and other insiders have sold 20,029 shares totaling approximately $2.34 million in the last 90 days, which can signal a lack of confidence in the near-term outlook, even with the AI momentum. Still, the institutional footprint is too large to ignore, suggesting that the long-term strategic value tied to cloud and AI is what matters most to the biggest players.