NETGEAR (NASDAQ:NTGR) Stock Price Down 6.5% - Should You Sell?

Key Points

• NETGEAR shares fell 6.5% to $22.71 in Friday trading, with volume 66% below the stock’s average daily level.
• Analysts have a consensus “Hold” rating and an average price target of $36.00, although Weiss Ratings reaffirmed a “sell (d)” assessment.
• NETGEAR exceeded quarterly earnings and revenue expectations, reporting $0.16 EPS and $168.56 million in revenue, but revenue declined 1.2% year over year and the company remained unprofitable on a net-margin basis.

NETGEAR, Inc. (NASDAQ:NTGR - Get Free Report)'s share price was down 6.5% on Friday . The company traded as low as $22.73 and last traded at $22.71. 159,154 shares traded hands during trading, a decline of 66% from the average daily volume of 469,989 shares. The stock had previously closed at $24.30.

Analyst Upgrades and Downgrades

Separately, Weiss Ratings reaffirmed a "sell (d)" rating on shares of NETGEAR in a research note on Wednesday, June 24th. 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 stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $36.00.

NETGEAR Trading Down 3.6%

The business's 50 day moving average is $23.76 and its 200 day moving average is $23.23. The stock has a market capitalization of $628.86 million, a PE ratio of -26.56 and a beta of 1.20.

NETGEAR (NASDAQ:NTGR - Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The communications equipment provider reported $0.16 earnings per share for the quarter, topping analysts' consensus estimates of $0.01 by $0.15. NETGEAR had a negative net margin of 3.58% and a negative return on equity of 2.71%. The company had revenue of $168.56 million for the quarter, compared to analyst estimates of $157.80 million. During the same period in the prior year, the company posted $0.06 EPS. The firm's revenue for the quarter was down 1.2% on a year-over-year basis. As a group, analysts anticipate that NETGEAR, Inc. will post -0.5 EPS for the current year.

Insiders Place Their Bets

In related news, Director Shravan Goli sold 3,381 shares of the firm's stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $26.89, for a total value of $90,915.09. Following the transaction, the director owned 25,857 shares of the company's stock, valued at $695,294.73. This trade represents a 11.56% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Sarah Butterfass sold 2,704 shares of the business's stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $26.90, for a total transaction of $72,737.60. Following the completion of the sale, the director directly owned 38,953 shares of the company's stock, valued at approximately $1,047,835.70. This trade represents a 6.49% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 12,085 shares of company stock worth $313,933 in the last 90 days. 3.10% of the stock is owned by insiders.

Institutional Investors Weigh In On NETGEAR

Several hedge funds have recently made changes to their positions in the company. Johnson Financial Group Inc. bought a new position in NETGEAR during the 4th quarter worth about $25,000. Comerica Bank raised its position in shares of NETGEAR by 64.8% in the 3rd quarter. Comerica Bank now owns 1,091 shares of the communications equipment provider's stock worth $35,000 after acquiring an additional 429 shares in the last quarter. IFP Advisors Inc lifted its position in shares of NETGEAR by 161.7% during the fourth quarter. IFP Advisors Inc now owns 2,243 shares of the communications equipment provider's stock valued at $55,000 after buying an additional 1,386 shares during the last quarter. Persistent Asset Partners Ltd acquired a new stake in NETGEAR in the second quarter valued at approximately $58,000. Finally, Fifth Third Bancorp increased its position in shares of NETGEAR by 6,085.7% during the first quarter. Fifth Third Bancorp now owns 3,031 shares of the communications equipment provider's stock worth $66,000 after purchasing an additional 2,982 shares in the last quarter. 82.97% of the stock is currently owned by hedge funds and other institutional investors.

NETGEAR Company Profile

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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