NETGEAR (NASDAQ:NTGR) Trading Down 8.2% – Here’s Why

NETGEAR, Inc. (NASDAQ:NTGR)’s stock price was down 8.2% during mid-day trading on Wednesday . The company traded as low as $22.19 and last traded at $22.4430. Approximately 398,453 shares traded hands during trading, a decline of 27% from the average daily volume of 548,129 shares. The stock had previously closed at $24.46.

Analysts Set New Price Targets

A number of equities analysts have recently weighed in on NTGR shares. Weiss Ratings reiterated a “sell (d)” rating on shares of NETGEAR in a research note on Monday, December 29th. Wall Street Zen downgraded NETGEAR from a “hold” rating to a “sell” rating in a research note on Sunday, March 1st. Stifel Nicolaus set a $36.00 price objective on NETGEAR in a research report on Thursday, February 5th. Finally, Zacks Research raised NETGEAR from a “strong sell” rating to a “hold” rating in a report on Tuesday, March 10th. Two analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, NETGEAR presently has an average rating of “Hold” and an average target price of $36.00.

NETGEAR Trading Down 1.2%

The stock’s 50-day simple moving average is $21.21 and its 200-day simple moving average is $25.75. The stock has a market cap of $622.14 million, a price-to-earnings ratio of -35.69 and a beta of 1.16.

NETGEAR (NASDAQ:NTGR) last released its quarterly earnings results on Wednesday, February 4th. The communications equipment provider reported $0.26 earnings per share for the quarter, beating analysts’ consensus estimates of $0.05 by $0.21. The company had revenue of $182.47 million during the quarter, compared to the consensus estimate of $177.26 million. NETGEAR had a negative net margin of 2.56% and a negative return on equity of 2.40%. The firm’s quarterly revenue was up .0% on a year-over-year basis. During the same period in the previous year, the business earned ($0.06) earnings per share. On average, equities research analysts forecast that NETGEAR, Inc. will post -1.84 earnings per share for the current year.

Insiders Place Their Bets

In other NETGEAR news, insider Pramod Badjate sold 3,000 shares of NETGEAR stock in a transaction on Monday, February 2nd. The stock was sold at an average price of $20.97, for a total value of $62,910.00. Following the completion of the transaction, the insider directly owned 144,586 shares of the company’s stock, valued at $3,031,968.42. The trade was a 2.03% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 2.30% of the stock is owned by corporate insiders.

Institutional Trading of NETGEAR

Large investors have recently modified their holdings of the stock. Hsbc Holdings PLC increased its position in shares of NETGEAR by 12.2% in the fourth quarter. Hsbc Holdings PLC now owns 30,030 shares of the communications equipment provider’s stock worth $741,000 after purchasing an additional 3,277 shares during the period. XTX Topco Ltd lifted its position in NETGEAR by 135.7% during the fourth quarter. XTX Topco Ltd now owns 17,048 shares of the communications equipment provider’s stock worth $418,000 after purchasing an additional 9,815 shares during the period. Wellington Management Group LLP grew its stake in NETGEAR by 2.4% during the fourth quarter. Wellington Management Group LLP now owns 156,222 shares of the communications equipment provider’s stock worth $3,832,000 after buying an additional 3,663 shares in the last quarter. Millennium Management LLC grew its stake in NETGEAR by 386.1% during the fourth quarter. Millennium Management LLC now owns 236,078 shares of the communications equipment provider’s stock worth $5,791,000 after buying an additional 187,515 shares in the last quarter. Finally, Engineers Gate Manager LP increased its holdings in NETGEAR by 36.5% in the 4th quarter. Engineers Gate Manager LP now owns 58,020 shares of the communications equipment provider’s stock valued at $1,423,000 after buying an additional 15,512 shares during the period. 82.97% of the stock is owned by institutional investors and hedge funds.

NETGEAR Company Profile

NETGEAR, Inc (NASDAQ: NTGR) is a global provider of networking solutions for consumer, business and service provider markets. The company designs, develops and markets a comprehensive portfolio of products that enable high-speed connectivity, data storage and network security for homes, small to medium-sized businesses and large enterprises.

Its product lineup includes Wi-Fi routers, mesh networking systems, cable modems, mobile broadband gateways and Ethernet switches—offered in both managed and unmanaged configurations.