Bank of New York Mellon Corp Makes New Investment in NETGEAR, Inc. $NTGR

Key Points

• Bank of New York Mellon initiated a NETGEAR stake, purchasing 135,003 shares worth approximately $3.15 million, equivalent to 0.50% of the company. Institutional investors collectively own 82.97% of NTGR.
• NETGEAR’s latest quarterly results exceeded expectations, with EPS of $0.16 versus the $0.01 consensus estimate and revenue of $168.56 million versus forecasts of $157.80 million. However, revenue declined 1.2% year over year and the company remains unprofitable.
• Analyst sentiment is mixed, with an overall “Hold” rating and an average price target of $36.50 versus the stock’s $21.31 opening price. An insider’s 3,000-share sale was made to cover tax obligations tied to vested equity awards.

Bank of New York Mellon Corp bought a new stake in shares of NETGEAR, Inc. (NASDAQ:NTGR - Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor bought 135,003 shares of the communications equipment provider's stock, valued at approximately $3,152,000. Bank of New York Mellon Corp owned 0.50% of NETGEAR at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also bought and sold shares of NTGR. Johnson Financial Group Inc. purchased a new position in shares of NETGEAR in the fourth quarter worth $25,000. Comerica Bank raised its stake in shares of NETGEAR by 64.8% during the third quarter. Comerica Bank now owns 1,091 shares of the communications equipment provider's stock valued at $35,000 after acquiring an additional 429 shares during the last quarter. IFP Advisors Inc boosted its holdings in shares of NETGEAR by 161.7% during the fourth quarter. IFP Advisors Inc now owns 2,243 shares of the communications equipment provider's stock worth $55,000 after purchasing an additional 1,386 shares during the period. Fifth Third Bancorp boosted its holdings in shares of NETGEAR by 6,085.7% during the first quarter. Fifth Third Bancorp now owns 3,031 shares of the communications equipment provider's stock worth $66,000 after purchasing an additional 2,982 shares during the period. Finally, Tower Research Capital LLC TRC grew its stake in shares of NETGEAR by 35.2% in the second quarter. Tower Research Capital LLC TRC now owns 3,475 shares of the communications equipment provider's stock worth $101,000 after purchasing an additional 904 shares during the last quarter. 82.97% of the stock is currently owned by institutional investors.

Insider Transactions at NETGEAR

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

Wall Street Analysts Forecast Growth

A number of research analysts have commented 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 upgraded shares of NETGEAR from a "sell" rating to a "hold" rating in a report on Sunday. Two investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock has an average rating of "Hold" and an average target price of $36.50.

NETGEAR Stock Performance

NETGEAR stock opened at $21.31 on Monday. NETGEAR, Inc. has a 12 month low of $19.00 and a 12 month high of $36.86. The business's fifty day simple moving average is $22.80 and its two-hundred day simple moving average is $23.37. The company has a market capitalization of $579.21 million, a price-to-earnings ratio of -22.91 and a beta of 1.17.

NETGEAR (NASDAQ:NTGR - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The communications equipment provider reported $0.16 earnings per share (EPS) for the quarter, topping the consensus estimate 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 during the quarter, compared to analyst estimates of $157.80 million. During the same quarter in the previous year, the firm earned $0.06 EPS. NETGEAR's quarterly revenue was down 1.2% compared to the same quarter last year. On average, equities research analysts predict that NETGEAR, Inc. will post -0.52 EPS for the current year.

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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