NETGEAR (NASDAQ:NTGR) Stock Breaks Above 200-Day Moving Average - What's Next?

Key Points

• NETGEAR shares moved above their 200-day moving average, reaching $23.57 and last trading at $23.40, compared with the $22.96 long-term average.
• Analysts maintain a generally cautious outlook: the stock has an average rating of “Hold” and a consensus price target of $33.50, despite two Buy ratings.
• NETGEAR’s latest quarterly results exceeded expectations, with earnings per share of $0.16 versus a $0.01 consensus estimate and revenue of $168.56 million, though revenue declined 1.2% year over year.

NETGEAR, Inc. (NASDAQ:NTGR - Get Free Report)'s stock price passed above its 200-day moving average during trading on Tuesday. The stock has a 200-day moving average of $22.96 and traded as high as $23.57. NETGEAR shares last traded at $23.40, with a volume of 380,399 shares changing hands.

Analyst Ratings Changes

A number of research analysts have issued reports on NTGR shares. Weiss Ratings restated a "sell (d)" rating on shares of NETGEAR in a report on Monday, September 21st. Stifel Nicolaus lowered 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. Finally, Wall Street Zen raised shares of NETGEAR from a "sell" rating to a "hold" rating in a research report on Sunday, September 6th. Two analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $33.50.

NETGEAR Price Performance

The firm has a market cap of $635.99 million, a PE ratio of -25.16 and a beta of 1.15. The stock has a 50-day moving average price of $22.11 and a 200 day moving average price of $22.96.

NETGEAR (NASDAQ:NTGR - Get Free Report) last released its earnings results on Thursday, August 6th. The communications equipment provider reported $0.16 earnings per share for the quarter, topping the consensus estimate of $0.01 by $0.15. The business had revenue of $168.56 million for the quarter, compared to analysts' expectations of $157.80 million. During the same quarter last year, the company posted $0.06 earnings per share. The business's quarterly revenue was down 1.2% compared to the same quarter last year. As a group, equities research analysts anticipate that NETGEAR, Inc. will post -0.57 earnings per share for the current year.

Insider Activity

In related news, insider Pramod Badjate sold 3,000 shares of the company's stock in a transaction that occurred on Friday, July 31st. The shares were sold at an average price of $23.88, for a total transaction of $71,640.00. Following the completion of the transaction, the insider owned 154,073 shares of the company's stock, valued at approximately $3,679,263.24. This represents a 1.91% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Corporate insiders own 3.10% of the company's stock.

Institutional Trading of NETGEAR

Several institutional investors have recently made changes to their positions in NTGR. BlackRock Inc. purchased a new position in shares of NETGEAR in the 2nd quarter worth $82,799,000. Renaissance Technologies LLC increased its stake in NETGEAR by 77.8% during the first quarter. Renaissance Technologies LLC now owns 557,462 shares of the communications equipment provider's stock worth $12,175,000 after acquiring an additional 243,843 shares during the last quarter. Wellington Management Group LLP increased its stake in NETGEAR by 75.0% during the second quarter. Wellington Management Group LLP now owns 428,011 shares of the communications equipment provider's stock worth $9,994,000 after acquiring an additional 183,495 shares during the last quarter. Bank of America Corp DE increased its stake in NETGEAR by 71.5% during the first quarter. Bank of America Corp DE now owns 240,730 shares of the communications equipment provider's stock worth $5,258,000 after acquiring an additional 100,368 shares during the last quarter. Finally, Manatuck Hill Partners LLC purchased a new position in shares of NETGEAR in the 2nd quarter worth about $3,736,000. 82.97% of the stock is owned by hedge funds and other institutional investors.

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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