NETGEAR (NASDAQ:NTGR) Hits New 12-Month High - Should You Buy?

Key Points

• NETGEAR's stock reached a new 52-week high, trading at $36.86 during mid-day trading on Thursday, with a last recorded price of $35.55.
• Analyst ratings show mixed sentiments, with one strong buy, two buy ratings, and one hold rating, while the average consensus target price is $33.00.
• In its latest earnings report, NETGEAR surpassed expectations by reporting earnings per share of $0.06 on revenue of $170.53 million, an 18.5% increase year-over-year.

NETGEAR, Inc. (NASDAQ:NTGR - Get Free Report)'s share price reached a new 52-week high during mid-day trading on Thursday . The stock traded as high as $36.86 and last traded at $35.55, with a volume of 822849 shares traded. The stock had previously closed at $33.06.

Analyst Ratings Changes

Several analysts recently commented on the company. Stifel Nicolaus assumed coverage on NETGEAR in a research note on Friday, August 22nd. They set a "buy" rating and a $35.00 price objective on the stock. Seaport Res Ptn upgraded NETGEAR to a "strong-buy" rating in a report on Wednesday, October 1st. Weiss Ratings restated a "hold (c)" rating on shares of NETGEAR in a report on Wednesday. Wall Street Zen downgraded NETGEAR from a "buy" rating to a "hold" rating in a report on Saturday, August 2nd. Finally, UBS Group set a $35.00 price target on NETGEAR in a report on Thursday, August 21st. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of "Buy" and a consensus target price of $33.00.

NETGEAR Trading Up 8.9%

The company has a 50 day simple moving average of $27.97 and a 200-day simple moving average of $27.23. The stock has a market cap of $1.04 billion, a price-to-earnings ratio of 16.67 and a beta of 1.09.

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

Insider Activity

In related news, Director Shravan Goli sold 2,047 shares of NETGEAR stock in a transaction dated Monday, September 29th. The stock was sold at an average price of $29.95, for a total value of $61,307.65. Following the sale, the director owned 29,238 shares of the company's stock, valued at approximately $875,678.10. The trade was a 6.54% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 2.30% of the company's stock.

Hedge Funds Weigh In On NETGEAR

A number of institutional investors have recently bought and sold shares of NTGR. FNY Investment Advisers LLC acquired a new position in NETGEAR during the second quarter worth approximately $58,000. Rexford Capital Inc. acquired a new position in NETGEAR during the second quarter worth approximately $58,000. CWM LLC increased its position in NETGEAR by 35.4% during the first 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. Headlands Technologies LLC increased its position in NETGEAR by 19.6% during the first quarter. Headlands Technologies LLC now owns 3,010 shares of the communications equipment provider's stock worth $74,000 after buying an additional 494 shares during the last quarter. Finally, Tower Research Capital LLC TRC increased its position in NETGEAR by 35.2% during the second quarter. Tower Research Capital LLC TRC now owns 3,475 shares of the communications equipment provider's stock worth $101,000 after buying an additional 904 shares during the last quarter. Institutional investors and hedge funds own 82.97% of the company's stock.

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.

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