NETGEAR (NASDAQ:NTGR) Shares Down 7.3% - What's Next?

Key Points

• Shares fell 7.3% to about $22.71 on Thursday, trading roughly 204,405 shares (down ~63% versus average) after a prior close of $24.51.
• Analyst consensus is a "Hold" with a consensus price target of $36.00 (two Buys, one Hold, one Sell) despite the recent share weakness.
• NETGEAR beat the quarter with $0.26 EPS vs $0.05 expected and $182.5M revenue, but remains unprofitable (negative ROE/net margin) and sell-side forecasts -1.84 EPS for the current fiscal year.

NETGEAR, Inc. (NASDAQ:NTGR - Get Free Report)'s stock price was down 7.3% on Thursday . The stock traded as low as $22.54 and last traded at $22.71. Approximately 204,405 shares traded hands during trading, a decline of 63% from the average daily volume of 550,504 shares. The stock had previously closed at $24.51.

Analyst Upgrades and Downgrades

NTGR has been the topic of a number of analyst reports. Wall Street Zen raised NETGEAR from a "sell" rating to a "hold" rating in a research note on Saturday, March 28th. Stifel Nicolaus set a $36.00 price target on NETGEAR in a research note on Thursday, February 5th. Zacks Research raised NETGEAR from a "strong sell" rating to a "hold" rating in a research note on Tuesday, March 10th. Finally, Weiss Ratings reissued a "sell (d)" rating on shares of NETGEAR in a research note on Friday, March 27th. Two investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $36.00.

NETGEAR Stock Performance

The stock has a 50-day moving average of $21.44 and a 200-day moving average of $25.36. The firm has a market cap of $647.79 million, a price-to-earnings ratio of -37.16 and a beta of 1.09.

NETGEAR (NASDAQ:NTGR - Get Free Report) last announced its earnings results on Wednesday, February 4th. The communications equipment provider reported $0.26 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.05 by $0.21. NETGEAR had a negative return on equity of 2.40% and a negative net margin of 2.56%.The business had revenue of $182.47 million for the quarter, compared to analyst estimates of $177.26 million. During the same quarter last year, the firm earned ($0.06) EPS. NETGEAR's revenue for the quarter was up .0% compared to the same quarter last year. Sell-side analysts predict that NETGEAR, Inc. will post -1.84 EPS for the current fiscal year.

Insider Transactions at NETGEAR

In related news, insider Pramod Badjate sold 3,000 shares of NETGEAR stock in a transaction that occurred on Monday, February 2nd. The stock was sold at an average price of $20.97, for a total value of $62,910.00. Following the sale, the insider owned 144,586 shares of the company's stock, valued at approximately $3,031,968.42. This trade represents a 2.03% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Corporate insiders own 2.30% of the company's stock.

Institutional Investors Weigh In On NETGEAR

Several institutional investors and hedge funds have recently added to or reduced their stakes in NTGR. Windward Management LP bought a new stake in NETGEAR during the 4th quarter worth about $35,468,000. Concentric Capital Strategies LP bought a new stake in NETGEAR during the 4th quarter worth about $7,020,000. Lazard Asset Management LLC lifted its position in 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 buying an additional 256,266 shares in the last quarter. Jacobs Levy Equity Management Inc. lifted its position in NETGEAR by 43.7% during the 3rd quarter. Jacobs Levy Equity Management Inc. now owns 717,973 shares of the communications equipment provider's stock worth $23,255,000 after buying an additional 218,347 shares in the last quarter. Finally, Cinctive Capital Management LP bought a new stake in NETGEAR during the 3rd quarter worth about $6,433,000. 82.97% of the stock is owned by 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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