BlackRock Inc. Buys Shares of 3,546,016 NETGEAR, Inc. $NTGR

Key Points

• BlackRock acquired 3.55 million NETGEAR shares during the second quarter, worth approximately $82.8 million, giving it a 13.21% stake. Institutional investors collectively own 82.97% of the company.
• Analyst sentiment remains mixed: NETGEAR has an average “Hold” rating and a $36.50 price target, while Wall Street Zen recently downgraded the stock to “Sell.”
• 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 analysts expect a full-year loss.

BlackRock Inc. bought a new position in NETGEAR, Inc. (NASDAQ:NTGR - Free Report) in the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund bought 3,546,016 shares of the communications equipment provider's stock, valued at approximately $82,799,000. BlackRock Inc. owned approximately 13.21% of NETGEAR as of its most recent SEC filing.

A number of other large investors have also recently bought and sold shares of the business. Johnson Financial Group Inc. acquired a new position in shares of NETGEAR during the 4th quarter worth about $25,000. Comerica Bank increased its stake in NETGEAR by 64.8% in 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 period. IFP Advisors Inc lifted its position in shares of NETGEAR by 161.7% during the 4th quarter. IFP Advisors Inc now owns 2,243 shares of the communications equipment provider's stock worth $55,000 after buying an additional 1,386 shares during the period. Persistent Asset Partners Ltd bought a new position in shares of NETGEAR during the second quarter valued at $58,000. Finally, Fifth Third Bancorp boosted its holdings in shares of NETGEAR by 6,085.7% in the 1st quarter. Fifth Third Bancorp now owns 3,031 shares of the communications equipment provider's stock worth $66,000 after acquiring an additional 2,982 shares in the last quarter. 82.97% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

A number of equities analysts have weighed in on NTGR shares. Wall Street Zen downgraded shares of NETGEAR from a "hold" rating to a "sell" rating in a research note on Saturday. Weiss Ratings reaffirmed a "sell (d)" rating on shares of NETGEAR in a research note 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 assigned a Sell rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Hold" and an average target price of $36.50.

Insider Activity at NETGEAR

In related news, Director Laura Durr sold 1,000 shares of the stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $26.76, for a total value of $26,760.00. Following the sale, the director owned 42,059 shares in the company, valued at approximately $1,125,498.84. This represents a 2.32% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Pramod Badjate sold 3,000 shares of the stock in a transaction dated Friday, July 31st. The shares were sold at an average price of $23.88, for a total transaction of $71,640.00. Following the completion of the transaction, the insider directly owned 154,073 shares in the company, valued at $3,679,263.24. The trade was a 1.91% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders own 3.10% of the company's stock.

NETGEAR Stock Performance

Shares of NASDAQ NTGR opened at $21.09 on Monday. The stock has a market capitalization of $573.23 million, a PE ratio of -22.68 and a beta of 1.20. NETGEAR, Inc. has a 52 week low of $19.00 and a 52 week high of $36.86. The stock has a 50 day moving average price of $23.00 and a 200 day moving average price of $23.37.

NETGEAR (NASDAQ:NTGR - Get Free Report) last issued 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. The business had revenue of $168.56 million for the quarter, compared to the consensus estimate of $157.80 million. NETGEAR had a negative net margin of 3.71% and a negative return on equity of 2.79%. The firm's revenue for the quarter was down 1.2% on a year-over-year basis. During the same period in the previous year, the company earned $0.06 earnings per share. As a group, research analysts forecast that NETGEAR, Inc. will post -0.52 EPS for the current year.

NETGEAR 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.

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