NETGEAR (NASDAQ:NTGR) Trading Down 5.5% - Here's Why

NETGEAR, Inc. (NASDAQ:NTGR - Get Free Report) dropped 5.5% during mid-day trading on Tuesday . The company traded as low as $25.98 and last traded at $25.97. Approximately 249,299 shares were traded during trading, a decline of 34% from the average daily volume of 376,544 shares. The stock had previously closed at $27.49.

Analyst Upgrades and Downgrades

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

NETGEAR Price Performance

The firm has a market capitalization of $746.44 million, a PE ratio of 31.63 and a beta of 1.13. The firm's fifty day moving average is $28.97 and its two-hundred day moving average is $26.76.

NETGEAR (NASDAQ:NTGR - Get Free Report) last released its quarterly earnings results on Wednesday, April 30th. The communications equipment provider reported $0.02 earnings per share for the quarter, topping the consensus estimate of ($0.35) by $0.37. NETGEAR had a net margin of 3.72% and a negative return on equity of 7.63%. The business had revenue of $162.06 million for the quarter, compared to analysts' expectations of $152.24 million. During the same period in the previous year, the company earned ($0.28) earnings per share. The firm's revenue for the quarter was down 1.5% compared to the same quarter last year. As a group, equities research analysts predict that NETGEAR, Inc. will post -1.84 EPS for the current fiscal year.

Insider Activity

In other NETGEAR news, CFO Murray Bryan sold 2,671 shares of the business'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 transaction, the chief financial officer directly owned 178,945 shares in the company, valued at $5,026,565.05. The trade was a 1.47% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Sarah Butterfass sold 5,848 shares of the business'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 owned 41,657 shares in the company, 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 have sold a total of 19,671 shares of company stock valued at $565,429 in the last three months. 2.30% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. CWM LLC boosted its stake in 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 acquiring an additional 763 shares during the last quarter. Headlands Technologies LLC boosted its stake in NETGEAR by 19.6% in the first quarter. Headlands Technologies LLC now owns 3,010 shares of the communications equipment provider's stock valued at $74,000 after acquiring an additional 494 shares during the last quarter. Summit Investment Advisors Inc. boosted its stake in NETGEAR by 19.6% in the fourth quarter. Summit Investment Advisors Inc. now owns 2,917 shares of the communications equipment provider's stock valued at $81,000 after acquiring an additional 479 shares during the last quarter. Skandinaviska Enskilda Banken AB publ purchased a new position in NETGEAR in the first quarter valued at about $154,000. Finally, Parallax Volatility Advisers L.P. purchased a new position in NETGEAR in the first quarter valued at about $206,000. 82.97% of the stock is currently owned by hedge funds and other institutional investors.

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.