NETGEAR (NASDAQ:NTGR) Stock Price Crosses Above Two Hundred Day Moving Average - Here's Why

Key Points

• NETGEAR shares rose 4.3% and moved above their 200-day moving average, trading as high as $24.36 after crossing the key technical level of $23.16.
• Analyst sentiment is mixed but leans cautious: the stock has a consensus rating of Hold with a consensus price target of $36.00, while recent ratings included a Weiss Ratings sell and a Wall Street Zen upgrade to hold.
• The company’s last earnings beat expectations, reporting $0.06 EPS versus an expected loss and $158.82 million in revenue, but revenue was still down 2% year over year and analysts expect a full-year loss.

NETGEAR, Inc. (NASDAQ:NTGR - Get Free Report)'s stock price passed above its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of $23.16 and traded as high as $24.36. NETGEAR shares last traded at $24.24, with a volume of 570,473 shares traded.

Wall Street Analysts Forecast Growth

Several equities analysts have weighed in on the company. Weiss Ratings restated a "sell (d)" rating on shares of NETGEAR in a report on Wednesday, June 24th. Wall Street Zen upgraded shares of NETGEAR from a "sell" rating to a "hold" rating in a report on Saturday, March 28th. Two investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus price target of $36.00.

NETGEAR Stock Up 4.3%

The stock's 50-day moving average price is $24.01 and its 200 day moving average price is $23.16. The firm has a market cap of $650.60 million, a price-to-earnings ratio of -27.55 and a beta of 1.19.

NETGEAR (NASDAQ:NTGR - Get Free Report) last released its earnings results on Wednesday, April 29th. The communications equipment provider reported $0.06 earnings per share for the quarter, topping analysts' consensus estimates of ($0.08) by $0.14. The business had revenue of $158.82 million for the quarter, compared to the consensus estimate of $152.49 million. NETGEAR had a negative return on equity of 2.71% and a negative net margin of 3.58%.The firm's revenue for the quarter was down 2.0% compared to the same quarter last year. During the same period last year, the business earned $0.02 earnings per share. On average, research analysts predict that NETGEAR, Inc. will post -0.5 EPS for the current year.

Insider Transactions at NETGEAR

In other news, Director Laura Durr sold 1,000 shares of the business's stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $26.76, for a total transaction of $26,760.00. Following the sale, the director directly owned 42,059 shares in the company, valued at approximately $1,125,498.84. The trade was a 2.32% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Pramod Badjate sold 3,000 shares of the company's stock in a transaction on Friday, May 1st. The shares were sold at an average price of $25.47, for a total value of $76,410.00. Following the completion of the transaction, the insider owned 165,513 shares of the company's stock, valued at $4,215,616.11. The trade was a 1.78% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 12,085 shares of company stock worth $318,703 over the last quarter. 3.10% of the stock is owned by company insiders.

Hedge Funds Weigh In On NETGEAR

A number of hedge funds have recently made changes to their positions in NTGR. Anchor Capital Advisors LLC bought a new stake in NETGEAR in the fourth quarter valued at about $2,131,000. Concentric Capital Strategies LP acquired a new position in NETGEAR in the fourth quarter worth about $7,020,000. OP Asset Management Ltd acquired a new position in NETGEAR in the first quarter worth about $5,266,000. Leuthold Group LLC lifted its stake in NETGEAR by 56.1% during the fourth quarter. Leuthold Group LLC now owns 159,432 shares of the communications equipment provider's stock worth $3,911,000 after purchasing an additional 57,266 shares during the period. Finally, Brandes Investment Partners LP lifted its stake in NETGEAR by 10.8% during the fourth quarter. Brandes Investment Partners LP now owns 1,855,555 shares of the communications equipment provider's stock worth $45,517,000 after purchasing an additional 180,295 shares during the period. Institutional investors and hedge funds own 82.97% of the company's stock.

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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