Concentric Capital Strategies LP Makes New $7.02 Million Investment in NETGEAR, Inc. $NTGR

Key Points

• Concentric Capital Strategies LP disclosed a new position in NETGEAR, buying 286,176 shares worth about $7.02 million in the fourth quarter. The stake represented roughly 1.01% of the company.
• Institutional ownership remains high, with several other hedge funds and asset managers also increasing their holdings. The article says 82.97% of NETGEAR’s stock is owned by hedge funds and other institutional investors.
• NETGEAR’s stock has mixed signals: analysts currently have a Hold consensus rating with a $36.00 price target, while insiders have been selling shares recently. The company also beat quarterly EPS and revenue estimates in its latest report, though revenue still declined year over year.

Concentric Capital Strategies LP acquired a new position in NETGEAR, Inc. (NASDAQ:NTGR - Free Report) during the fourth quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm acquired 286,176 shares of the communications equipment provider's stock, valued at approximately $7,020,000. Concentric Capital Strategies LP owned approximately 1.01% of NETGEAR as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds and other institutional investors have also added to or reduced their stakes in the business. Amundi increased its stake in NETGEAR by 99.1% in the 1st quarter. Amundi now owns 48,211 shares of the communications equipment provider's stock worth $1,179,000 after acquiring an additional 23,993 shares during the last quarter. Goldman Sachs Group Inc. increased its stake in NETGEAR by 15.5% in the 1st quarter. Goldman Sachs Group Inc. now owns 279,874 shares of the communications equipment provider's stock worth $6,846,000 after acquiring an additional 37,469 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in NETGEAR by 13.9% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 74,146 shares of the communications equipment provider's stock worth $1,814,000 after acquiring an additional 9,021 shares during the last quarter. Legal & General Group Plc increased its stake in NETGEAR by 5.4% in the 2nd quarter. Legal & General Group Plc now owns 34,690 shares of the communications equipment provider's stock worth $1,008,000 after acquiring an additional 1,788 shares during the last quarter. Finally, Rhumbline Advisers increased its stake in NETGEAR by 2.3% in the 2nd quarter. Rhumbline Advisers now owns 51,678 shares of the communications equipment provider's stock worth $1,502,000 after acquiring an additional 1,140 shares during the last quarter. 82.97% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

NTGR has been the topic of a number of research analyst reports. Zacks Research upgraded NETGEAR from a "strong sell" rating to a "hold" rating in a research note on Tuesday, March 10th. Weiss Ratings restated a "sell (d)" rating on shares of NETGEAR in a research note on Friday, March 27th. Finally, Wall Street Zen upgraded shares of NETGEAR from a "sell" rating to a "hold" rating in a research report on Saturday, March 28th. 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 data from MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $36.00.

Insider Activity at NETGEAR

In related news, insider Pramod Badjate sold 3,000 shares of NETGEAR stock in a transaction on Friday, May 1st. The shares were sold at an average price of $25.47, for a total value of $76,410.00. Following the transaction, the insider owned 165,513 shares in the company, valued at $4,215,616.11. This trade represents a 1.78% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Shravan Goli sold 3,381 shares of NETGEAR stock in a transaction on Monday, June 1st. The stock was sold at an average price of $26.89, for a total transaction of $90,915.09. Following the completion of the transaction, the director owned 25,857 shares in the company, valued at approximately $695,294.73. The trade was a 11.56% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 12,085 shares of company stock worth $318,703. Corporate insiders own 3.10% of the company's stock.

NETGEAR Stock Performance

NETGEAR stock opened at $22.77 on Thursday. The firm's fifty day moving average price is $25.28 and its 200-day moving average price is $23.56. The stock has a market cap of $611.15 million, a P/E ratio of -25.88 and a beta of 1.17. NETGEAR, Inc. has a fifty-two week low of $19.00 and a fifty-two week high of $36.86.

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

NETGEAR Company 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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