NETGEAR (NASDAQ:NTGR) Upgraded by Wall Street Zen to Hold Rating

Key Points

• Wall Street Zen upgraded NETGEAR from “sell” to “hold,” while Weiss Ratings maintained a “sell” rating. The broader analyst consensus is “Hold,” with a $36.50 target price.
• NETGEAR reported quarterly EPS of $0.16, beating the $0.01 consensus estimate, and revenue of $168.56 million versus expectations of $157.80 million; however, revenue declined 1.2% year over year and profitability metrics remained negative.
• The stock opened at $21.31, near the lower end of its 52-week range of $19.00 to $36.86. Institutional investors own approximately 82.97% of outstanding shares, while an insider sold 3,000 shares to cover tax obligations tied to vested equity awards.

NETGEAR (NASDAQ:NTGR - Get Free Report) was upgraded by investment analysts at Wall Street Zen from a "sell" rating to a "hold" rating in a research note issued to investors on Sunday, Wall Street Zen reports.

Separately, Weiss Ratings restated a "sell (d)" rating on shares of NETGEAR in a research report on Wednesday, June 24th. Two equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, NETGEAR presently has a consensus rating of "Hold" and a consensus target price of $36.50.

NETGEAR Stock Up 1.0%

NASDAQ NTGR opened at $21.31 on Friday. NETGEAR has a 52 week low of $19.00 and a 52 week high of $36.86. The stock has a market capitalization of $579.21 million, a PE ratio of -22.91 and a beta of 1.17. The firm has a 50 day moving average of $22.80 and a two-hundred day moving average of $23.36.

NETGEAR (NASDAQ:NTGR - Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The communications equipment provider reported $0.16 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.01 by $0.15. NETGEAR had a negative return on equity of 2.79% and a negative net margin of 3.71%.The firm had revenue of $168.56 million for the quarter, compared to the consensus estimate of $157.80 million. During the same quarter last year, the business posted $0.06 EPS. The firm's quarterly revenue was down 1.2% compared to the same quarter last year. On average, equities research analysts expect that NETGEAR will post -0.52 earnings per share for the current fiscal year.

Insider Activity

In other news, insider Pramod Badjate sold 3,000 shares of the business's stock in a transaction on Friday, July 31st. The stock was sold at an average price of $23.88, for a total transaction of $71,640.00. Following the sale, the insider directly owned 154,073 shares of the company's stock, valued at $3,679,263.24. The trade was a 1.91% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 3.10% of the stock is owned by company insiders.

Institutional Trading of NETGEAR

Hedge funds have recently bought and sold shares of the company. BlackRock Inc. bought a new position in NETGEAR during the 2nd quarter valued at about $82,799,000. Vanguard Group Inc. lifted its stake in NETGEAR by 3.0% in the 4th quarter. Vanguard Group Inc. now owns 2,543,240 shares of the communications equipment provider's stock valued at $62,386,000 after purchasing an additional 74,457 shares during the last quarter. Brandes Investment Partners LP grew its holdings in NETGEAR by 10.8% during the fourth quarter. Brandes Investment Partners LP now owns 1,855,555 shares of the communications equipment provider's stock worth $45,517,000 after purchasing an additional 180,295 shares during the period. Dimensional Fund Advisors LP increased its position in NETGEAR by 5.5% during the third quarter. Dimensional Fund Advisors LP now owns 1,636,697 shares of the communications equipment provider's stock worth $53,010,000 after buying an additional 85,228 shares during the last quarter. Finally, Windward Management LP bought a new stake in NETGEAR in the fourth quarter valued at approximately $35,468,000. 82.97% of the stock is owned by hedge funds and other 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.

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