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.

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

Wall Street Analyst Weigh In

Separately, Wall Street Zen upgraded NETGEAR from a "hold" rating to a "buy" rating in a research note on Monday, May 5th.

NETGEAR Stock Down 5.7%

The business has a 50-day moving average price of $28.54 and a 200-day moving average price of $26.71. The firm has a market capitalization of $669.31 million, a PE ratio of 28.27 and a beta of 1.13.

NETGEAR (NASDAQ:NTGR - Get Free Report) last released its quarterly earnings results on Wednesday, July 30th. The communications equipment provider reported $0.06 EPS for the quarter, topping analysts' consensus estimates of ($0.16) by $0.22. NETGEAR had a negative return on equity of 7.63% and a net margin of 3.72%. The company had revenue of $170.53 million for the quarter, compared to analysts' expectations of $162.06 million. During the same period in the prior year, the firm earned ($0.74) earnings per share. The firm's revenue was up 18.5% compared to the same quarter last year. On average, equities research analysts anticipate that NETGEAR, Inc. will post -1.84 earnings per share for the current year.

Insider Buying and Selling at NETGEAR

In other NETGEAR news, CFO Murray Bryan sold 2,671 shares of the company's stock in a transaction dated Friday, May 2nd. The shares were sold at an average price of $28.09, for a total value of $75,028.39. Following the completion of the transaction, the chief financial officer directly owned 178,945 shares of the company's stock, valued at $5,026,565.05. This represents a 1.47% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Sarah Butterfass sold 5,848 shares of the company'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 completion of the transaction, the director directly owned 41,657 shares of the company's stock, valued at approximately $1,203,470.73. The trade was a 12.31% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 19,671 shares of company stock valued at $565,429 in the last quarter. Company insiders own 2.30% of the company's stock.

Institutional Investors Weigh In On NETGEAR

A number of institutional investors have recently modified their holdings of NTGR. FNY Investment Advisers LLC acquired a new stake in NETGEAR during the second quarter worth about $58,000. CWM LLC grew its position in NETGEAR by 35.4% in the 1st quarter. CWM LLC now owns 2,916 shares of the communications equipment provider's stock worth $71,000 after purchasing an additional 763 shares during the last quarter. Summit Investment Advisors Inc. grew its position in NETGEAR by 19.6% in the 4th quarter. Summit Investment Advisors Inc. now owns 2,917 shares of the communications equipment provider's stock worth $81,000 after purchasing an additional 479 shares during the last quarter. Headlands Technologies LLC grew 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 worth $74,000 after purchasing an additional 494 shares during the last quarter. Finally, Skandinaviska Enskilda Banken AB publ bought a new position in NETGEAR in the 1st quarter worth about $154,000. 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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