NETGEAR (NASDAQ:NTGR) Reaches New 52-Week Low - Here's What Happened

Key Points

• NETGEAR shares hit a 52-week low, trading as low as $18.89 after a previous close of $22.32.
• Third-quarter EPS of $0.13 beat expectations of a $0.05 loss, but revenue of $167.35 million missed forecasts and fell 9.3% year over year; reports also noted a wider quarterly loss.
• NETGEAR forecast fourth-quarter revenue of $160 million to $175 million and a non-GAAP operating margin of just 0% to 3%, signaling limited near-term profitability.

NETGEAR, Inc. (NASDAQ:NTGR - Get Free Report) shares hit a new 52-week low on Thursday. The stock traded as low as $18.89 and last traded at $18.81, with a volume of 436,129 shares trading hands. The stock had previously closed at $22.32.

Trending Headlines about NETGEAR

Here are the key news stories impacting NETGEAR this week:

• Positive Sentiment: NETGEAR reported quarterly earnings of $0.13 per share, above the consensus estimate of a $0.05 loss and slightly ahead of $0.12 a year earlier. Zacks Q3 earnings article
• Negative Sentiment: Revenue was $167.35 million, below analysts’ $170 million estimate and down 9.3% year over year. Reports also said the company’s quarterly loss widened, highlighting ongoing pressure despite the per-share earnings beat. MarketBeat earnings report RTTNews report on Q3 loss
• Negative Sentiment: For Q4, NETGEAR forecast revenue of $160 million to $175 million and a non-GAAP operating margin of just 0% to 3%. The limited margin outlook and potential for revenue to remain subdued could constrain expectations for near-term profitability. Q4 outlook

Analyst Ratings Changes

NTGR has been the topic of several research analyst reports. Wall Street Zen raised shares of NETGEAR from a "sell" rating to a "hold" rating in a report on Sunday, September 6th. Weiss Ratings reiterated a "sell (d)" rating on shares of NETGEAR in a research report on Monday, September 21st. Finally, Stifel Nicolaus cut their price target on shares of NETGEAR from $36.00 to $30.00 and set a "buy" rating for the company in a report on Monday, October 5th. One research analyst has rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $30.00.

NETGEAR Price Performance

The firm has a 50-day simple moving average of $22.27 and a 200 day simple moving average of $22.95. The stock has a market capitalization of $516.15 million, a P/E ratio of -20.42 and a beta of 1.22.

NETGEAR (NASDAQ:NTGR - Get Free Report) last announced its quarterly earnings results on Wednesday, November 4th. The communications equipment provider reported $0.13 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.05) by $0.18. The firm had revenue of $167.35 million during the quarter, compared to analysts' expectations of $170.00 million. NETGEAR had a negative net margin of 3.71% and a negative return on equity of 2.79%. The company's revenue was down 9.3% on a year-over-year basis. During the same period in the prior year, the company posted $0.12 EPS. Sell-side analysts anticipate that NETGEAR, Inc. will post -0.57 earnings per share for the current fiscal year.

Institutional Trading of NETGEAR

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Continuum Advisory LLC bought a new stake in NETGEAR in the second quarter valued at $25,000. State of Alaska Department of Revenue acquired a new stake in shares of NETGEAR in the 3rd quarter valued at about $27,000. Integrated Wealth Concepts LLC acquired a new stake in shares of NETGEAR in the 2nd quarter valued at about $31,000. Persistent Asset Partners Ltd bought a new stake in NETGEAR in the 2nd quarter valued at about $58,000. Finally, Fifth Third Bancorp increased 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 buying an additional 2,982 shares in the last quarter. Institutional investors and hedge funds own 82.97% of the company's stock.

NETGEAR Company Profile

NETGEAR, Inc develops and sells networking products and connected technology for consumers, small and medium-sized businesses, and service providers. Its portfolio includes wireless routers, mesh Wi-Fi systems, cable and 5G modems, Wi-Fi extenders, network switches, wireless access points, and related connectivity products.

The company markets consumer products under brands such as Nighthawk and Orbi, while its business-oriented offerings include managed networking, switching, wireless access points, and cloud-based network management through the NETGEAR Insight platform.

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