NETGEAR (NASDAQ:NTGR) Stock Rating Lowered by Wall Street Zen

Key Points

• NETGEAR has been downgraded by Wall Street Zen from a "buy" rating to a "hold" rating, affecting investor sentiment.
• Despite its recent challenges, NETGEAR reported quarterly earnings that exceeded estimates with an EPS of $0.06 and revenue of $170.53 million.
• Insider trading activity shows significant selling, with insiders collectively selling 17,000 shares valued at $490,401 in the past 90 days.

NETGEAR (NASDAQ:NTGR - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued to clients and investors on Saturday.

NETGEAR Price Performance

NTGR stock traded up $0.89 during midday trading on Friday, hitting $24.83. 317,033 shares of the stock traded hands, compared to its average volume of 432,395. The firm has a market cap of $720.26 million, a P/E ratio of 11.49 and a beta of 1.07. The stock's fifty day simple moving average is $28.05 and its 200-day simple moving average is $26.63. NETGEAR has a 1-year low of $14.85 and a 1-year high of $31.55.

NETGEAR (NASDAQ:NTGR - Get Free Report) last posted its quarterly earnings results on Wednesday, July 30th. The communications equipment provider reported $0.06 earnings per share for the quarter, topping the consensus estimate 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 the consensus estimate of $162.06 million. During the same period last year, the firm posted ($0.74) earnings per share. The company's revenue for the quarter was up 18.5% on a year-over-year basis. On average, research analysts predict that NETGEAR will post -1.84 earnings per share for the current year.

Insider Activity at NETGEAR

In other news, VP Graeme Mclindin sold 2,377 shares of NETGEAR stock in a transaction that occurred on Friday, June 13th. The shares were sold at an average price of $28.38, for a total transaction of $67,459.26. Following the sale, the vice president owned 61,208 shares in the company, valued at $1,737,083.04. This trade represents a 3.74% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Sarah Butterfass sold 5,848 shares of the company's stock in a transaction dated Thursday, May 29th. The stock was sold at an average price of $28.89, for a total transaction of $168,948.72. Following the completion of the sale, the director directly owned 41,657 shares of the company's stock, valued at $1,203,470.73. The trade was a 12.31% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 17,000 shares of company stock valued at $490,401. Insiders own 2.30% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in NTGR. Ritholtz Wealth Management acquired a new stake in NETGEAR during the first quarter worth approximately $495,000. Hsbc Holdings PLC increased its position in NETGEAR by 29.3% in the fourth quarter. Hsbc Holdings PLC now owns 73,209 shares of the communications equipment provider's stock worth $2,012,000 after buying an additional 16,588 shares during the last quarter. GAMMA Investing LLC increased its position in NETGEAR by 3,539.0% in the first quarter. GAMMA Investing LLC now owns 11,936 shares of the communications equipment provider's stock worth $292,000 after buying an additional 11,608 shares during the last quarter. Tenzing Global Management LLC grew its position in shares of NETGEAR by 64.3% in the fourth quarter. Tenzing Global Management LLC now owns 287,500 shares of the communications equipment provider's stock valued at $8,013,000 after purchasing an additional 112,500 shares in the last quarter. Finally, Ameriprise Financial Inc. lifted its stake in NETGEAR by 30.7% during the fourth quarter. Ameriprise Financial Inc. now owns 116,525 shares of the communications equipment provider's stock worth $3,248,000 after purchasing an additional 27,379 shares during the last quarter. Institutional investors and hedge funds own 82.97% of the company's stock.

NETGEAR Company Profile

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.