NETGEAR (NASDAQ:NTGR) was downgraded by Zacks Investment Research from a "hold" rating to a "strong sell" rating in a report released on Tuesday, Zacks.com reports. They presently have a $29.00 target price on the communications equipment provider's stock. Zacks Investment Research's target price would indicate a potential downside of 11.88% from the stock's previous close.
According to Zacks, "NETGEAR reported weak second-quarter 2021 results, with both the bottom line and top line missing their respective Zacks Consensus Estimate. Component shortages and supply chain disruptions hampered its quarterly results. Its operating results are likely to be affected by introduction of new products by competitors. The company functions in a rapidly evolving and fiercely competitive market and expects competition to intensify on price. Its business is highly susceptible to seasonality, which leads to volatility in cash flow and reduces the predictability of earnings. Escalated research and development expenses strain its margins. However, NETGEAR is well poised to retain its leadership in the consumer networking market by capitalizing on technology inflections and building recurring subscription service revenues to drive its momentum in 2021."
Several other research firms have also recently commented on NTGR. Deutsche Bank Aktiengesellschaft cut their target price on NETGEAR from $44.00 to $34.00 and set a "hold" rating on the stock in a research note on Thursday, July 22nd. BWS Financial lowered their price target on NETGEAR from $54.00 to $43.00 and set a "buy" rating on the stock in a research report on Thursday, July 22nd. They noted that the move was a valuation call. Finally, Raymond James lowered their price target on NETGEAR from $48.00 to $42.00 and set an "outperform" rating on the stock in a research report on Thursday, July 22nd. One equities research analyst has rated the stock with a sell rating, two have assigned a hold rating and two have given a buy rating to the company's stock. The stock presently has a consensus rating of "Hold" and an average price target of $38.20.
NASDAQ NTGR traded down $1.64 during trading on Tuesday, hitting $32.91. The stock had a trading volume of 6,833 shares, compared to its average volume of 407,314. The firm has a market cap of $1.00 billion, a P/E ratio of 10.58 and a beta of 0.81. The company has a 50-day moving average price of $38.24. NETGEAR has a 12 month low of $27.17 and a 12 month high of $46.38.
NETGEAR (NASDAQ:NTGR) last released its earnings results on Tuesday, July 20th. The communications equipment provider reported $0.66 EPS for the quarter, missing the Thomson Reuters' consensus estimate of $0.71 by ($0.05). The firm had revenue of $308.81 million during the quarter, compared to the consensus estimate of $314.83 million. NETGEAR had a net margin of 7.09% and a return on equity of 13.98%. The company's revenue was up 10.3% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.54 EPS. On average, equities research analysts predict that NETGEAR will post 2.29 earnings per share for the current fiscal year.
In related news, insider Mark G. Merrill sold 4,500 shares of the business's stock in a transaction that occurred on Wednesday, July 21st. The stock was sold at an average price of $36.85, for a total transaction of $165,825.00. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, SVP Andrew Wonki Kim sold 781 shares of the business's stock in a transaction that occurred on Wednesday, May 19th. The stock was sold at an average price of $36.62, for a total value of $28,600.22. Following the transaction, the senior vice president now directly owns 64,970 shares in the company, valued at $2,379,201.40. The disclosure for this sale can be found here. Insiders have sold a total of 63,601 shares of company stock worth $2,400,831 in the last ninety days. Insiders own 4.70% of the company's stock.
A number of hedge funds and other institutional investors have recently modified their holdings of NTGR. LSV Asset Management grew its holdings in NETGEAR by 514.9% in the 1st quarter. LSV Asset Management now owns 986,892 shares of the communications equipment provider's stock valued at $40,561,000 after buying an additional 826,392 shares in the last quarter. Norges Bank acquired a new position in NETGEAR in the 4th quarter valued at $14,894,000. BlackRock Inc. grew its holdings in NETGEAR by 7.3% in the 1st quarter. BlackRock Inc. now owns 5,227,063 shares of the communications equipment provider's stock valued at $214,831,000 after buying an additional 356,608 shares in the last quarter. Geode Capital Management LLC grew its holdings in NETGEAR by 16.2% in the 1st quarter. Geode Capital Management LLC now owns 536,639 shares of the communications equipment provider's stock valued at $22,055,000 after buying an additional 74,910 shares in the last quarter. Finally, Alberta Investment Management Corp acquired a new position in NETGEAR in the 1st quarter valued at $1,817,000. 99.51% of the stock is currently owned by hedge funds and other institutional investors.
NETGEAR Company Profile
NETGEAR, Inc designs, develops, and markets networking and Internet connected products for consumers, businesses, and service providers. It operates in two segments, Connected Home, and Small and Medium Business. The company offers smart home/connected home/broadband access products, such as broadband modems, WiFi gateways, WiFi hotspots, WiFi routers and home WiFi systems, WiFi range extenders, Powerline adapters and bridges, WiFi network adapters, and digital canvasses; and value added service offerings, including technical support, parental controls, and cybersecurity protection.
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