Insider Selling: NETGEAR (NASDAQ:NTGR) Insider Sells 3,000 Shares of Stock

Key Points

• NETGEAR insider Pramod Badjate sold 3,000 shares at an average price of $25.47 on May 1 under a pre-arranged Rule 10b5-1 plan to cover tax withholding from vested equity, trimming his stake by 1.78% to 165,513 shares (≈$4.22M).
• NETGEAR beat estimates with $0.06 EPS and $158.82M revenue for the quarter but remains unprofitable (negative net margin and ROE); shares trade around $24.71 with a market cap of ≈$675.6M and a consensus analyst rating of "Hold" with a $36 target.

NETGEAR, Inc. (NASDAQ:NTGR - Get Free Report) insider Pramod Badjate sold 3,000 shares of the company's stock in a transaction that occurred on Friday, May 1st. The stock was sold at an average price of $25.47, for a total transaction of $76,410.00. Following the completion of the sale, the insider directly owned 165,513 shares of the company's stock, valued at approximately $4,215,616.11. This represents a 1.78% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible 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.

NETGEAR Stock Performance

Shares of NASDAQ:NTGR traded down $0.54 during trading on Monday, reaching $24.71. The company had a trading volume of 380,156 shares, compared to its average volume of 542,696. The firm's fifty day moving average is $22.87 and its 200 day moving average is $24.54. The firm has a market capitalization of $675.57 million, a PE ratio of -28.08 and a beta of 1.18. NETGEAR, Inc. has a twelve month low of $19.00 and a twelve month high of $36.86.

NETGEAR (NASDAQ:NTGR - Get Free Report) last released its earnings results on Wednesday, April 29th. The communications equipment provider reported $0.06 EPS for the quarter, beating the consensus estimate of ($0.08) by $0.14. NETGEAR had a negative net margin of 3.58% and a negative return on equity of 2.71%. The business had revenue of $158.82 million during the quarter, compared to analyst estimates of $152.49 million. During the same period in the prior year, the business earned $0.02 earnings per share. The business's quarterly revenue was down 2.0% on a year-over-year basis. Equities analysts predict that NETGEAR, Inc. will post -0.72 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

Several analysts recently commented on NTGR shares. Stifel Nicolaus set a $36.00 target price on shares of NETGEAR in a research note on Thursday, February 5th. Weiss Ratings reissued a "sell (d)" rating on shares of NETGEAR in a research note on Friday, March 27th. Zacks Research raised shares of NETGEAR from a "strong sell" rating to a "hold" rating in a research note on Tuesday, March 10th. Finally, Wall Street Zen raised shares of NETGEAR from a "sell" rating to a "hold" rating in a research note on Saturday, March 28th. Two research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, NETGEAR has a consensus rating of "Hold" and a consensus target price of $36.00.

Institutional Investors Weigh In On NETGEAR

Several hedge funds have recently made changes to their positions in the company. Comerica Bank lifted its position in shares of NETGEAR by 64.8% in the 3rd 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 in the last quarter. Jones Financial Companies Lllp increased its stake in NETGEAR by 44.7% in the 3rd quarter. Jones Financial Companies Lllp now owns 2,323 shares of the communications equipment provider's stock valued at $75,000 after buying an additional 718 shares during the period. Tower Research Capital LLC TRC increased its stake in NETGEAR by 35.2% in the 2nd quarter. Tower Research Capital LLC TRC now owns 3,475 shares of the communications equipment provider's stock valued at $101,000 after buying an additional 904 shares during the period. FNY Investment Advisers LLC increased its stake in NETGEAR by 50.0% in the 3rd quarter. FNY Investment Advisers LLC now owns 3,000 shares of the communications equipment provider's stock valued at $97,000 after buying an additional 1,000 shares during the period. Finally, Johnson Financial Group Inc. acquired a new position in NETGEAR in the 4th quarter valued at approximately $25,000. Hedge funds and other institutional investors own 82.97% of the company's stock.

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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