NETGEAR (NASDAQ:NTGR) Shares Down 9.9% - Time to Sell?

Key Points

• NETGEAR's stock price has dropped significantly, falling by 9.9% to $22.21, with a trading volume that is 24% below the average.
• Wall Street analysts have upgraded NETGEAR from a "hold" to a "buy" rating, indicating a potential positive shift in investor sentiment.
• In its latest earnings report, NETGEAR posted a profit of $0.06 EPS, beating estimates by $0.22, and reported an 18.5% increase in revenue year-over-year.

Shares of NETGEAR, Inc. (NASDAQ:NTGR - Get Free Report) dropped 9.9% during mid-day trading on Thursday . The company traded as low as $22.54 and last traded at $22.21. Approximately 316,954 shares traded hands during mid-day trading, a decline of 24% from the average daily volume of 415,619 shares. The stock had previously closed at $24.66.

Analysts Set New Price Targets

Separately, Wall Street Zen cut shares of NETGEAR from a "buy" rating to a "hold" rating in a research report on Saturday.

NETGEAR Stock Up 2.9%

The business's 50-day simple moving average is $28.28 and its 200-day simple moving average is $26.67. The stock has a market cap of $666.60 million, a PE ratio of 10.74 and a beta of 1.07.

NETGEAR (NASDAQ:NTGR - Get Free Report) last released its quarterly earnings data on Wednesday, July 30th. The communications equipment provider reported $0.06 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.16) by $0.22. NETGEAR had a net margin of 9.13% and a negative return on equity of 3.24%. The firm had revenue of $170.53 million for the quarter, compared to analysts' expectations of $162.06 million. During the same quarter in the previous year, the company earned ($0.74) earnings per share. The company's revenue for the quarter was up 18.5% compared to the same quarter last year. As a group, equities research analysts anticipate that NETGEAR, Inc. will post -1.84 earnings per share for the current fiscal year.

Insider Activity at NETGEAR

In related news, Director Laura Durr sold 4,388 shares of the business's stock in a transaction dated Thursday, June 12th. The shares were sold at an average price of $29.50, for a total transaction of $129,446.00. Following the transaction, the director owned 49,446 shares in the company, valued at $1,458,657. The trade was a 8.15% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Sarah Butterfass sold 5,848 shares of the business's stock in a transaction dated Thursday, May 29th. The shares were sold at an average price of $28.89, for a total transaction of $168,948.72. Following the transaction, the director owned 41,657 shares in the company, valued at $1,203,470.73. This represents a 12.31% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 17,000 shares of company stock worth $490,401 over the last 90 days. 2.30% of the stock is owned by company insiders.

Institutional Investors Weigh In On NETGEAR

Several hedge funds have recently bought and sold shares of the business. Summit Investment Advisors Inc. boosted its stake in NETGEAR by 19.6% during the fourth quarter. Summit Investment Advisors Inc. now owns 2,917 shares of the communications equipment provider's stock worth $81,000 after acquiring an additional 479 shares in the last quarter. Headlands Technologies LLC boosted its stake 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 acquiring an additional 494 shares in the last quarter. CWM LLC boosted its stake 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 acquiring an additional 763 shares in the last quarter. SG Americas Securities LLC boosted its stake in NETGEAR by 5.8% during the first quarter. SG Americas Securities LLC now owns 14,241 shares of the communications equipment provider's stock worth $348,000 after acquiring an additional 780 shares in the last quarter. Finally, Legal & General Group Plc boosted its stake in NETGEAR by 2.6% during the fourth quarter. Legal & General Group Plc now owns 32,902 shares of the communications equipment provider's stock worth $917,000 after acquiring an additional 846 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.