NETGEAR, Inc. (NASDAQ:NTGR) Receives Average Recommendation of "Hold" from Brokerages

Key Points

• NETGEAR has a consensus “Hold” rating from four analysts: two rate it a buy, one a hold and one a sell. The average 12-month price target is $36.50, compared with the stock’s recent price of $22.90.
• NETGEAR’s latest quarterly results exceeded expectations, with adjusted earnings of $0.16 per share versus the $0.01 consensus estimate and revenue of $168.56 million versus $157.80 million expected. However, revenue declined 1.2% year over year and analysts forecast a full-year loss of $0.52 per share.
• Institutional investors own 82.97% of NETGEAR’s shares, while insiders own 3.10%. The stock currently trades near its 50-day moving average and well below its 52-week high of $36.86.

Shares of NETGEAR, Inc. (NASDAQ:NTGR - Get Free Report) have earned a consensus rating of "Hold" from the four research firms that are currently covering the stock, MarketBeat Ratings reports. One research analyst has rated the stock with a sell rating, one has given a hold rating and two have issued a buy rating on the company. The average 12 month price target among brokerages that have issued ratings on the stock in the last year is $36.50.

Several equities analysts have recently issued reports on NTGR shares. Weiss Ratings reaffirmed a "sell (d)" rating on shares of NETGEAR in a research report on Wednesday, June 24th. Wall Street Zen raised shares of NETGEAR from a "sell" rating to a "hold" rating in a research report on Sunday, September 6th.

Insider Buying and Selling

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

Institutional Investors Weigh In On NETGEAR

Several institutional investors have recently modified their holdings of NTGR. Integrated Wealth Concepts LLC bought a new position in NETGEAR during the 2nd quarter valued at about $31,000. Amundi grew its stake in shares of NETGEAR by 9.8% in the second quarter. Amundi now owns 27,251 shares of the communications equipment provider's stock worth $636,000 after acquiring an additional 2,421 shares during the period. AXQ Capital LP purchased a new position in shares of NETGEAR during the second quarter valued at approximately $388,000. Continuum Advisory LLC purchased a new position in shares of NETGEAR during the second quarter valued at approximately $25,000. Finally, Northwestern Mutual Wealth Management Co. lifted its position in NETGEAR by 8.2% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 7,699 shares of the communications equipment provider's stock valued at $180,000 after purchasing an additional 581 shares during the period. 82.97% of the stock is owned by hedge funds and other institutional investors.

NETGEAR Stock Performance

NTGR stock opened at $22.90 on Friday. NETGEAR has a fifty-two week low of $19.00 and a fifty-two week high of $36.86. The business's 50 day moving average price is $22.69 and its two-hundred day moving average price is $23.44. The company has a market capitalization of $622.40 million, a price-to-earnings ratio of -24.62 and a beta of 1.17.

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

About NETGEAR

NETGEAR, Inc NASDAQ: NTGR develops and markets networking products and related services for consumers, businesses and service providers. Its portfolio includes wireless routers, mesh Wi-Fi systems, cable and cellular gateways, switches, wireless access points, network storage products and security cameras.

The company offers consumer-focused product lines such as Nighthawk and Orbi, as well as business networking solutions marketed under brands including NETGEAR Business and Insight.

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