NETGEAR (NASDAQ:NTGR) Shares Down 3.8% - Here's Why

Key Points

• NETGEAR's shares fell by 3.8% during trading, closing at $33.83, with a significant decline in trading volume.
• Analysts have issued mixed ratings for NETGEAR, with a consensus rating of "Buy" and a price target averaging around $33.00.
• In its latest quarterly report, NETGEAR reported a positive earnings per share (EPS) of $0.06, surpassing expectations and reflecting an 18.5% year-over-year revenue increase.

NETGEAR, Inc. (NASDAQ:NTGR - Get Free Report) was down 3.8% during trading on Monday . The company traded as low as $34.00 and last traded at $33.83. Approximately 127,895 shares changed hands during trading, a decline of 71% from the average daily volume of 434,898 shares. The stock had previously closed at $35.18.

Analysts Set New Price Targets

A number of research firms have recently issued reports on NTGR. Wall Street Zen lowered shares of NETGEAR from a "buy" rating to a "hold" rating in a research report on Saturday, August 2nd. UBS Group set a $35.00 price objective on shares of NETGEAR in a report on Thursday, August 21st. Stifel Nicolaus initiated coverage on NETGEAR in a report on Friday, August 22nd. They set a "buy" rating and a $35.00 target price on the stock. Seaport Res Ptn upgraded NETGEAR to a "strong-buy" rating in a research note on Wednesday, October 1st. Finally, Zacks Research raised NETGEAR from a "hold" rating to a "strong-buy" rating in a report on Wednesday, October 8th. Two equities research analysts have rated the stock with a Strong Buy rating, two have issued a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Buy" and a consensus price target of $33.00.

NETGEAR Trading Down 3.3%

The firm has a market cap of $987.30 million, a price-to-earnings ratio of 15.75 and a beta of 1.09. The firm has a 50-day moving average of $28.22 and a two-hundred day moving average of $27.34.

NETGEAR (NASDAQ:NTGR - Get Free Report) last issued its quarterly earnings results on Wednesday, July 30th. The communications equipment provider reported $0.06 EPS 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 for the quarter, compared to the consensus estimate of $162.06 million. During the same period in the previous year, the business posted ($0.74) EPS. The company's revenue for the quarter was up 18.5% on a year-over-year basis. NETGEAR has set its Q3 2025 guidance at EPS. As a group, equities analysts anticipate that NETGEAR, Inc. will post -1.84 EPS for the current year.

Insider Activity

In other news, Director Shravan Goli sold 11,757 shares of the company's stock in a transaction dated Friday, August 22nd. The shares were sold at an average price of $26.11, for a total transaction of $306,975.27. Following the completion of the transaction, the director owned 31,285 shares of the company's stock, valued at approximately $816,851.35. This represents a 27.32% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 2.30% of the company's stock.

Institutional Trading of NETGEAR

Hedge funds have recently modified their holdings of the company. Headlands Technologies LLC increased its position in NETGEAR by 19.6% in the 1st quarter. Headlands Technologies LLC now owns 3,010 shares of the communications equipment provider's stock valued at $74,000 after acquiring an additional 494 shares in the last quarter. CWM LLC lifted its position in shares of 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 purchasing an additional 763 shares in the last quarter. SG Americas Securities LLC grew its stake in shares of NETGEAR by 5.8% during the first quarter. SG Americas Securities LLC now owns 14,241 shares of the communications equipment provider's stock valued at $348,000 after purchasing an additional 780 shares during the last quarter. Bank of New York Mellon Corp increased its holdings in shares of NETGEAR by 0.9% in the first 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 purchasing an additional 881 shares in the last quarter. Finally, Bailard Inc. increased its holdings in shares of NETGEAR by 9.9% in the second quarter. Bailard Inc. now owns 10,000 shares of the communications equipment provider's stock valued at $291,000 after purchasing an additional 900 shares in the last quarter. Institutional investors 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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