NETGEAR (NASDAQ:NTGR) Lowered to "Hold" Rating 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 stock analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued to clients and investors on Saturday.

NETGEAR Stock Performance

NTGR stock traded up $1.19 during midday trading on Friday, reaching $23.69. 1,195,720 shares of the company were exchanged, compared to its average volume of 431,433. The stock's 50-day simple moving average is $28.28 and its 200 day simple moving average is $26.67. NETGEAR has a 1-year low of $13.95 and a 1-year high of $31.55. The company has a market cap of $681.85 million, a price-to-earnings ratio of 10.97 and a beta of 1.07.

NETGEAR (NASDAQ:NTGR - Get Free Report) last announced its earnings results on Wednesday, July 30th. The communications equipment provider reported $0.06 EPS for the quarter, beating analysts' consensus estimates of ($0.16) by $0.22. NETGEAR had a negative return on equity of 3.24% and a net margin of 9.13%. 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 prior year, the firm earned ($0.74) EPS. NETGEAR's quarterly revenue was up 18.5% on a year-over-year basis. On average, research analysts anticipate that NETGEAR will post -1.84 earnings per share for the current year.

Insider Buying and Selling at NETGEAR

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

Institutional Investors Weigh In On NETGEAR

A number of hedge funds and other institutional investors have recently bought and sold shares of NTGR. FNY Investment Advisers LLC bought a new position in shares of NETGEAR in the 2nd quarter worth $58,000. CWM LLC grew its position in shares of NETGEAR by 35.4% in the first quarter. CWM LLC now owns 2,916 shares of the communications equipment provider's stock valued at $71,000 after purchasing an additional 763 shares during the last quarter. Headlands Technologies LLC raised its position in shares of NETGEAR by 19.6% in the 1st quarter. Headlands Technologies LLC now owns 3,010 shares of the communications equipment provider's stock valued at $74,000 after buying an additional 494 shares in the last quarter. Summit Investment Advisors Inc. raised its position 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 valued at $81,000 after purchasing an additional 479 shares in the last quarter. Finally, Skandinaviska Enskilda Banken AB publ acquired a new position in shares of NETGEAR during the first quarter worth $154,000. 82.97% of the stock is owned by institutional investors and hedge funds.

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.