NETGEAR (NASDAQ:NTGR) Trading Down 5.6% - Time to Sell?

Key Points

• NETGEAR shares fell 5.6% to about $22.79 in light trading, with volume down 93% versus the average daily level.
• Analysts have a consensus “Hold” rating and a $36 price target, although Weiss Ratings reaffirmed a “sell (d)” rating. The company recently beat quarterly EPS and revenue estimates, but revenue declined 1.2% year over year and analysts expect a full-year loss.
• Insiders sold 12,085 shares worth approximately $313,933 over the past three months, while institutional investors own a substantial 82.97% of NETGEAR’s stock.

NETGEAR, Inc. (NASDAQ:NTGR - Get Free Report) fell 5.6% during mid-day trading on Monday . The stock traded as low as $22.86 and last traded at $22.7940. Approximately 31,283 shares traded hands during trading, a decline of 93% from the average daily volume of 465,588 shares. The stock had previously closed at $24.15.

Wall Street Analyst Weigh In

Separately, Weiss Ratings reissued a "sell (d)" rating on shares of NETGEAR in a research note on Wednesday, June 24th. Two research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus price target of $36.00.

NETGEAR Stock Down 7.0%

The firm's 50-day moving average price is $23.49 and its two-hundred day moving average price is $23.32. The firm has a market capitalization of $610.46 million, a PE ratio of -24.14 and a beta of 1.20.

NETGEAR (NASDAQ:NTGR - Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The communications equipment provider reported $0.16 EPS for the quarter, topping the consensus estimate of $0.01 by $0.15. NETGEAR had a negative net margin of 3.71% and a negative return on equity of 2.79%. The company had revenue of $168.56 million for the quarter, compared to analyst estimates of $157.80 million. During the same quarter in the prior year, the business posted $0.06 EPS. NETGEAR's quarterly revenue was down 1.2% on a year-over-year basis. Equities research analysts forecast that NETGEAR, Inc. will post -0.5 EPS for the current year.

Insider Transactions at NETGEAR

In related news, Director Sarah Butterfass sold 2,704 shares of the stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $26.90, for a total value of $72,737.60. Following the sale, the director directly owned 38,953 shares in the company, valued at $1,047,835.70. This trade represents a 6.49% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Laura Durr sold 1,000 shares of the stock in a transaction 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 of the company's stock, valued at $1,125,498.84. This represents a 2.32% decrease in their position. 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 valued at $313,933 in the last three months. Company insiders own 3.10% of the company's stock.

Institutional Investors Weigh In On NETGEAR

A number of institutional investors and hedge funds have recently modified their holdings of the company. Johnson Financial Group Inc. bought a new position in NETGEAR in the 4th quarter valued at approximately $25,000. Comerica Bank increased its holdings in shares of NETGEAR by 64.8% during the third quarter. Comerica Bank now owns 1,091 shares of the communications equipment provider's stock valued at $35,000 after acquiring an additional 429 shares in the last quarter. IFP Advisors Inc raised 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 worth $55,000 after purchasing an additional 1,386 shares during the period. Persistent Asset Partners Ltd bought a new position in shares of NETGEAR in the 2nd quarter worth $58,000. Finally, Fifth Third Bancorp grew its position in NETGEAR by 6,085.7% in the 1st quarter. Fifth Third Bancorp now owns 3,031 shares of the communications equipment provider's stock valued at $66,000 after purchasing an additional 2,982 shares during the period. 82.97% of the stock is owned by 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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