NETGEAR, Inc. (NASDAQ:NTGR) Given Consensus Rating of "Hold" by Brokerages

Key Points

• NETGEAR has a consensus “Hold” rating from four analysts: two buys, one hold and one sell. The average 12-month price target is $36.50, compared with the stock’s opening price of $21.02.
• NETGEAR beat quarterly earnings expectations, reporting $0.16 in EPS versus a $0.01 consensus and revenue of $168.56 million versus $157.80 million expected. However, revenue declined 1.2% year over year, and analysts expect a full-year loss of $0.52 per share.
• Institutional investors own approximately 82.97% of NETGEAR, with BlackRock initiating an $82.8 million position and other funds increasing their stakes. Insiders have sold 12,085 shares worth about $313,933 over the past three months.

NETGEAR, Inc. (NASDAQ:NTGR - Get Free Report) has been assigned a consensus rating of "Hold" from the four brokerages that are covering the firm, MarketBeat Ratings reports. One analyst has rated the stock with a sell recommendation, one has assigned a hold recommendation and two have issued a buy recommendation on the company. The average 12-month price objective among analysts that have covered the stock in the last year is $36.50.

Separately, Weiss Ratings restated a "sell (d)" rating on shares of NETGEAR in a research report on Wednesday, June 24th.

NETGEAR Price Performance

NETGEAR stock opened at $21.02 on Monday. NETGEAR has a 12 month low of $19.00 and a 12 month high of $36.86. The business has a 50 day simple moving average of $23.22 and a 200-day simple moving average of $23.34. The stock has a market capitalization of $571.32 million, a PE ratio of -22.60 and a beta of 1.20.

NETGEAR (NASDAQ:NTGR - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The communications equipment provider reported $0.16 earnings per share 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 the consensus estimate of $157.80 million. During the same period last year, the company earned $0.06 earnings per share. The company's revenue for the quarter was down 1.2% on a year-over-year basis. As a group, equities research analysts anticipate that NETGEAR will post -0.52 EPS for the current year.

Insider Activity

In related news, insider Pramod Badjate sold 3,000 shares of the firm's stock in a transaction dated Friday, July 31st. The shares were sold at an average price of $23.88, for a total value of $71,640.00. Following the completion of the sale, the insider owned 154,073 shares in the company, valued at $3,679,263.24. This trade represents a 1.91% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 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 that occurred on Monday, June 1st. The shares were sold at an average price of $26.89, for a total value of $90,915.09. Following the completion of the sale, the director directly owned 25,857 shares in the company, valued at $695,294.73. This represents 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 three months, insiders have sold 12,085 shares of company stock valued at $313,933. 3.10% of the stock is owned by insiders.

Hedge Funds Weigh In On NETGEAR

A number of large investors have recently modified their holdings of NTGR. BlackRock Inc. purchased a new position in NETGEAR in the second quarter worth $82,799,000. Windward Management LP purchased a new stake in shares of NETGEAR during the 4th quarter worth $35,468,000. Concentric Capital Strategies LP purchased a new stake in shares of NETGEAR during the 4th quarter worth $7,020,000. Lazard Asset Management LLC boosted its position in shares of NETGEAR by 87.6% during the 3rd quarter. Lazard Asset Management LLC now owns 548,911 shares of the communications equipment provider's stock worth $17,779,000 after purchasing an additional 256,266 shares in the last quarter. Finally, Renaissance Technologies LLC grew its stake in shares of NETGEAR by 77.8% during the 1st quarter. Renaissance Technologies LLC now owns 557,462 shares of the communications equipment provider's stock worth $12,175,000 after purchasing an additional 243,843 shares during the period. 82.97% of the stock is owned by hedge funds and other institutional investors.

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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