Capital International Investors Cuts NetApp Stake to 2.5%

TL;DR

**Capital International Investors just cut their NetApp stake to 2.5%, watch out!**

AI Summary

Capital International Investors, a Delaware-based investment firm, filed an amended SC 13G/A on February 9, 2024, disclosing their ownership of 5,327,909 shares of NetApp, Inc. common stock as of December 29, 2023. This represents a 2.5% beneficial ownership of NetApp, Inc., a decrease from their previous filing. This matters to investors because it shows a significant institutional investor has reduced its stake, which could signal a change in their outlook on NetApp's future performance.

Why It Matters

A major institutional investor reducing its stake in NetApp could indicate a shift in their investment strategy or a less optimistic view of the company's future prospects, potentially influencing other investors.

Risk Assessment

Risk Level: medium — A significant institutional investor reducing its holdings can sometimes precede a period of underperformance for the stock, indicating a potential loss of confidence.

Analyst Insight

Investors should monitor NetApp's upcoming earnings reports and analyst ratings to understand if this reduction by Capital International Investors is an isolated event or part of a broader trend of institutional divestment.

Key Numbers

• 5,327,909 — Shares Beneficially Owned (This is the total number of NetApp shares Capital International Investors holds with sole voting power.)
• 2.5% — Percentage of Class (This represents the beneficial ownership percentage of NetApp's common stock by Capital International Investors.)

Key Players & Entities

• Capital International Investors (company) — the reporting person who filed the SC 13G/A
• NetApp, Inc. (company) — the subject company whose shares are being reported
• 5,327,909 (dollar_amount) — shares beneficially owned by Capital International Investors
• 2.5% (dollar_amount) — percentage of NetApp's class of securities beneficially owned
• December 29, 2023 (date) — the date of the event which requires the filing of this statement

Forward-Looking Statements

• NetApp's stock price may experience downward pressure due to this reduction in institutional ownership. (NetApp, Inc.) — medium confidence, target: Q1 2024

FAQ

Filing Documents

• SEC13G_Filing.htm (SC 13G/A) — 16KB
• 0001422848-24-000140.txt ( ) — 18KB

From the Filing

SC 13G/A 1 SEC13G_Filing.htm SEC SCHEDULE 13G UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 13G Under the Securities Exchange Act of 1934 (Amendment No. 5 ) * NetApp, Inc. (Name of Issuer) Common Stock (Title of Class of Securities) 64110D104 (CUSIP Number) December 29, 2023 (Date of Event Which Requires Filing of this Statement) Check the appropriate box to designate the rule pursuant to which this Schedule is filed: [X] Rule 13d-1(b) [ ] Rule 13d-1(c) [ ] Rule 13d-1(d) * The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter the disclosures provided in a prior cover page. The information required in the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 (the "Act") or otherwise subject to the liabilities of that section of the Act, but shall be subject to all other provisions of the Act (however, see the Notes.) CUSIP No. 64110D104 1. NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY) Capital International Investors 95-1411037 2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ] (b) [ ] 3. SEC USE ONLY 4. CITIZENSHIP OR PLACE OF ORGANIZATION Delaware NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH 5. SOLE VOTING POWER 5,327,909 6. SHARED VOTING POWER 0 7. SOLE DISPOSITIVE POWER 5,349,631 8. SHARED DISPOSITIVE POWER 0 9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 5,349,631 Beneficial ownership disclaimed pursuant to Rule 13d-4 10. CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES [ ] 11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9) 2.6% 12. TYPE OF REPORTING PERSON IA Item 1. (a) Name of Issuer NetApp, Inc. (b) Address of Issuer's Principal Executive Offices 3060 OLSEN DRIVE, SAN JOSE, CA 95128 Item 2. (a) Name of Person Filing Capital International Investors (b) Address of Principal Business Office or, if None, Residence 333 South Hope Street, 55th Fl, Los Angeles, CA 90071 (c) Citizenship N/A (d) Title of Class of Securities Common Stock (e) CUSIP Number 64110D104 Item 3. If This Statement is Filed Pursuant to Rule 13d-1(b), or 13d-2(b) or (c), Check Whether the Person Filing is a: (a) [ ] Broker or dealer registered under Section 15 of the Act (15 U.S.C. 78o). (b) [ ] Bank as defined in Section 3(a)(6) of the Act (15 U.S.C. 78c). (c) [ ] Insurance Company as defined in Section 3(a)(19) of the Act (15 U.S.C. 78c). (d) [ ] Investment Company registered under Section 8 of the Investment Company Act of 1940 (15 U.S.C. 80a-8). (e) [X] An investment adviser in accordance with Rule 240.13d-1(b)(1)(ii)(E); (f) [ ] An employee benefit plan or endowment fund in accordance with Rule 240.13d-1(b)(1)(ii)(F); (g) [ ] A parent holding company or control person in accordance with Rule 240.13d-1(b)(1)(ii)(G); (h) [ ] A savings association as defined in Section 3(b) of the Federal Deposit Insurance Act (12 U.S.C. 1813); (i) [ ] A church plan that is excluded from the definition of an investment company under Section 3(c)(14) of the Investment Company Act of 1940 (15 U.S.C. 80a-3); (j) [ ] Group, in accordance with Rule 240.13d-1(b)(1)(ii)(J). Item 4. Provide the following information regarding the aggregate number and percentage of the class of securities of the issuer identified in Item 1. (a) Amount Beneficially Owned: 5,349,631 ** (b) Percent of Class: 2.6% (c) Number of shares as to which such person has: (i) sole power to vote or to direct the vote 5,327,909 (ii) shared power to vote or to direct the vote 0 (iii) sole power to dispose or to direct the disposition of 5,349,631 (iv) shared power to dispose or to direct the disposition of 0 **Capital International Investors ("CII") is a division of Capital Research and Management Company ("CRMC"), as well as its investment management subsidiaries and affiliates Capital Bank and Trust Company, Capital International, Inc., Capital International Limited, Capital International Sarl, Capital International K.K., Capital Group Private Client Services, Inc., and Capital Group Investment Management Private Limited (together with CRMC, the "investment management entities"). CII's divisions of each of the investment management entities collectively provide investment management services under the name "Capital International Investors." CII is deemed to be the beneficial owner of 5,349,631 shares or 2.6% of the 206,031,047 shares believed to be outstanding. Item 5. If this statement is being filed to report the fact that as of the date hereof the reporting person has ceased to be the beneficial owner of more than five percent of the

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