NETGEAR (NASDAQ:NTGR) Cut to Hold at Zacks Research

Key Points

• NETGEAR has been downgraded by Zacks Research from a "strong-buy" to a "hold" rating, affecting investor sentiment.
• Despite the downgrade, Stifel Nicolaus raised its target price for NETGEAR from $35.00 to $40.00, reflecting ongoing confidence in the company's potential.
• NETGEAR reported a 18.5% year-over-year revenue increase for the previous quarter, showing improved financial performance despite challenges in the stock’s ratings.

NETGEAR (NASDAQ:NTGR - Get Free Report) was downgraded by research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research report issued to clients and investors on Monday,Zacks.com reports.

Several other analysts have also issued reports on NTGR. Seaport Res Ptn upgraded shares of NETGEAR to a "strong-buy" rating in a report on Wednesday, October 1st. UBS Group set a $35.00 price objective on shares of NETGEAR in a report on Thursday, August 21st. Weiss Ratings reaffirmed a "hold (c)" rating on shares of NETGEAR in a research report on Wednesday, October 8th. Stifel Nicolaus boosted their target price on NETGEAR from $35.00 to $40.00 and gave the company a "buy" rating in a research report on Friday. Finally, Wall Street Zen lowered NETGEAR from a "buy" rating to a "hold" rating in a research report on Saturday, August 2nd. One equities research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $34.67.

NETGEAR Price Performance

NETGEAR stock opened at $32.13 on Monday. NETGEAR has a 1-year low of $18.75 and a 1-year high of $36.86. The stock has a market cap of $931.95 million, a price-to-earnings ratio of 14.77 and a beta of 1.09. The firm has a 50 day simple moving average of $29.45 and a 200-day simple moving average of $27.80.

NETGEAR (NASDAQ:NTGR - Get Free Report) last issued its quarterly earnings data on Wednesday, July 30th. The communications equipment provider reported $0.06 earnings per share for the quarter, topping the consensus estimate of ($0.16) by $0.22. NETGEAR had a negative return on equity of 3.24% and a net margin of 9.13%.The company had revenue of $170.53 million during the quarter, compared to analyst estimates of $162.06 million. During the same period in the prior year, the business posted ($0.74) earnings per share. The firm's revenue for the quarter was up 18.5% compared to the same quarter last year. NETGEAR has set its Q3 2025 guidance at EPS. Equities analysts expect that NETGEAR will post -1.84 earnings per share for the current fiscal year.

Insider Activity

In other NETGEAR news, Director Shravan Goli sold 2,047 shares of the company's stock in a transaction dated Monday, September 29th. The stock was sold at an average price of $29.95, for a total transaction of $61,307.65. Following the sale, the director owned 29,238 shares in the company, valued at $875,678.10. This represents a 6.54% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Bradley Maiorino sold 13,063 shares of NETGEAR stock in a transaction dated Thursday, October 9th. The shares were sold at an average price of $35.26, for a total value of $460,601.38. Following the completion of the transaction, the director owned 56,356 shares of the company's stock, valued at $1,987,112.56. The trade was a 18.82% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 26,867 shares of company stock worth $828,884. 2.30% of the stock is owned by company insiders.

Institutional Investors Weigh In On NETGEAR

Hedge funds and other institutional investors have recently modified their holdings of the company. Headlands Technologies LLC boosted its holdings in NETGEAR by 19.6% in the first quarter. Headlands Technologies LLC now owns 3,010 shares of the communications equipment provider's stock valued at $74,000 after purchasing an additional 494 shares in the last quarter. CWM LLC lifted its position in shares of NETGEAR by 35.4% during the 1st quarter. CWM LLC now owns 2,916 shares of the communications equipment provider's stock worth $71,000 after buying an additional 763 shares during the last quarter. SG Americas Securities LLC boosted its holdings in shares of NETGEAR by 5.8% in the 1st quarter. SG Americas Securities LLC now owns 14,241 shares of the communications equipment provider's stock valued at $348,000 after buying an additional 780 shares in the last quarter. Bank of New York Mellon Corp grew its position in shares of NETGEAR by 0.9% in the 1st quarter. Bank of New York Mellon Corp now owns 100,562 shares of the communications equipment provider's stock valued at $2,460,000 after buying an additional 881 shares during the last quarter. Finally, Bailard Inc. grew its position in shares of NETGEAR by 9.9% in the 2nd quarter. Bailard Inc. now owns 10,000 shares of the communications equipment provider's stock valued at $291,000 after buying an additional 900 shares during the last quarter. 82.97% of the stock is currently owned by institutional investors and hedge funds.

About NETGEAR

NETGEAR, Inc provides connectivity solutions the Americas; Europe, the Middle East, Africa; and the Asia Pacific. The company operates in two segments, Connected Home, and NETGEAR for Business. The Connected Home segment offers Wi-Fi routers and home Wi-Fi mesh systems, Wi-Fi hotspots, digital displays, broadband modems, Wi-Fi gateways, Wi-Fi range extenders, powerline adapters, and Wi-Fi network adapters; and provides value-added service offerings, including security and privacy, technical support, and parental controls.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.