NETGEAR (NASDAQ:NTGR) Stock Price Down 6.1% – What’s Next?

NETGEAR, Inc. (NASDAQ:NTGR) shares fell 6.1% during trading on Wednesday . The stock traded as low as $22.80 and last traded at $22.8640. 230,590 shares were traded during trading, a decline of 54% from the average session volume of 499,268 shares. The stock had previously closed at $24.34.

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on NTGR shares. Zacks Research raised NETGEAR from a “strong sell” rating to a “hold” rating in a research note on Tuesday, March 10th. Weiss Ratings reiterated a “sell (d)” rating on shares of NETGEAR in a report on Friday, March 27th. Finally, Wall Street Zen raised shares of NETGEAR from a “sell” rating to a “hold” rating in a research report on Saturday, March 28th. Two investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Hold” and an average price target of $36.00.

NETGEAR Stock Down 6.5%

The firm has a market cap of $611.15 million, a P/E ratio of -25.88 and a beta of 1.17. The stock’s 50-day simple moving average is $25.30 and its 200 day simple moving average is $23.58.

NETGEAR (NASDAQ:NTGR) last posted its quarterly earnings data on Wednesday, April 29th. The communications equipment provider reported $0.06 earnings per share for the quarter, topping the consensus estimate of ($0.08) by $0.14. The firm had revenue of $158.82 million during the quarter, compared to analyst estimates of $152.49 million. NETGEAR had a negative return on equity of 2.71% and a negative net margin of 3.58%.The business’s quarterly revenue was down 2.0% on a year-over-year basis. During the same period last year, the company posted $0.02 EPS. On average, research analysts forecast that NETGEAR, Inc. will post -0.5 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director Sarah Butterfass sold 2,704 shares of the stock in a transaction on Monday, June 1st. The shares were sold at an average price of $26.90, for a total transaction of $72,737.60. Following the transaction, the director directly owned 38,953 shares of the company’s stock, valued at $1,047,835.70. This represents a 6.49% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Shravan Goli sold 3,381 shares of NETGEAR stock in a transaction on Monday, June 1st. The shares were sold at an average price of $26.89, for a total transaction of $90,915.09. Following the completion of the sale, the director directly owned 25,857 shares of the company’s stock, valued at approximately $695,294.73. This trade represents a 11.56% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 12,085 shares of company stock valued at $318,703 over the last 90 days. 3.10% of the stock is currently owned by corporate insiders.

Institutional Trading of NETGEAR

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in NTGR. Johnson Financial Group Inc. acquired a new stake in NETGEAR in the fourth quarter valued at approximately $25,000. Comerica Bank lifted its holdings in shares of NETGEAR by 64.8% in the 3rd quarter. Comerica Bank now owns 1,091 shares of the communications equipment provider’s stock worth $35,000 after purchasing an additional 429 shares in the last quarter. IFP Advisors Inc increased its stake in NETGEAR by 161.7% during the 4th quarter. IFP Advisors Inc now owns 2,243 shares of the communications equipment provider’s stock valued at $55,000 after purchasing an additional 1,386 shares in the last quarter. Fifth Third Bancorp lifted its stake in shares of NETGEAR by 6,085.7% in the first quarter. Fifth Third Bancorp now owns 3,031 shares of the communications equipment provider’s stock valued at $66,000 after buying an additional 2,982 shares in the last quarter. Finally, Jones Financial Companies Lllp grew its holdings in shares of NETGEAR by 44.7% during the third quarter. Jones Financial Companies Lllp now owns 2,323 shares of the communications equipment provider’s stock valued at $75,000 after buying an additional 718 shares during the last quarter. 82.97% of the stock is owned by institutional investors.

About NETGEAR

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.