NETGEAR (NASDAQ:NTGR) Shares Gap Up – Still a Buy?

NETGEAR, Inc. (NASDAQ:NTGR)’s stock price gapped up before the market opened on Tuesday . The stock had previously closed at $22.06, but opened at $24.75. NETGEAR shares last traded at $25.15, with a volume of 1,041,110 shares.

Key Stories Impacting NETGEAR

Here are the key news stories impacting NETGEAR this week:

• Positive Sentiment: FCC ruling: U.S. regulators added foreign-made consumer routers to a prohibited list, which investors view as reducing competition and potentially opening U.S. market share for domestic vendors like Netgear. NETGEAR (NTGR) Stock Surges 16% Following FCC’s Ban on Foreign-Made Routers
• Positive Sentiment: Immediate market reaction: Multiple outlets report double-digit intraday gains and heavy volume after the FCC announcement, signaling strong short-term investor enthusiasm for NTGR as a domestic supplier. Netgear shares jump 12% after FCC bans imports of certain foreign-made routers
• Positive Sentiment: Market-share narrative: Analysts and commentaries highlight that the ban could sideline key international rivals and create a multi-quarter tailwind for Netgear’s consumer and SMB router sales. Does FCC ruling position NetGear stock for market share gains?
• Neutral Sentiment: Broad coverage: Several market summaries and “stock movers” segments (Bloomberg/CNBC/MSN/Benzinga) are amplifying the news and trading momentum; useful for volume but not new fundamental data. Netgear Stock Soars Tuesday: Here’s Why
• Negative Sentiment: Analyst caution: Some pieces note that the surge may be overdone and that recent earnings/estimate trends don’t guarantee sustained upside — NTGR’s earnings outlook and margins remain mixed. NETGEAR (NTGR) Surges 10.9%: Is This an Indication of Further Gains?
• Neutral Sentiment: Short-interest noise: Recent short-interest reports appear noisy/erroneous (zeros/NaN in filings) and aren’t providing a clear signal on investor positioning. Treat these data as unreliable until corrected.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on NTGR. Stifel Nicolaus set a $36.00 price target on shares of NETGEAR in a report on Thursday, February 5th. Wall Street Zen downgraded shares of NETGEAR from a “hold” rating to a “sell” rating in a report on Sunday, March 1st. Zacks Research raised shares of NETGEAR from a “strong sell” rating to a “hold” rating in a research note on Tuesday, March 10th. Finally, Weiss Ratings restated a “sell (d)” rating on shares of NETGEAR in a report on Monday, December 29th. 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’s stock. According to data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus target price of $36.00.

NETGEAR Trading Down 8.5%

The firm has a market cap of $629.38 million, a price-to-earnings ratio of -36.11 and a beta of 1.16. The stock has a 50-day moving average of $21.22 and a two-hundred day moving average of $25.77.

NETGEAR (NASDAQ:NTGR) last posted its quarterly earnings data on Wednesday, February 4th. The communications equipment provider reported $0.26 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.05 by $0.21. NETGEAR had a negative return on equity of 2.40% and a negative net margin of 2.56%.The firm had revenue of $182.47 million for the quarter, compared to the consensus estimate of $177.26 million. During the same quarter in the previous year, the company earned ($0.06) EPS. The business’s revenue for the quarter was up .0% compared to the same quarter last year. Sell-side analysts expect that NETGEAR, Inc. will post -1.84 EPS for the current fiscal year.

Insider Buying and Selling at NETGEAR

In other news, insider Pramod Badjate sold 3,000 shares of NETGEAR stock in a transaction that occurred on Monday, February 2nd. The shares were sold at an average price of $20.97, for a total value of $62,910.00. Following the transaction, the insider directly owned 144,586 shares of the company’s stock, valued at $3,031,968.42. This trade represents a 2.03% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 2.30% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On NETGEAR

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Windward Management LP purchased a new stake in shares of NETGEAR in the fourth quarter valued at $35,468,000. Concentric Capital Strategies LP acquired a new stake in shares of NETGEAR in the fourth quarter worth $7,020,000. Lazard Asset Management LLC grew its holdings in shares of NETGEAR by 87.6% during the third quarter. Lazard Asset Management LLC now owns 548,911 shares of the communications equipment provider’s stock valued at $17,779,000 after buying an additional 256,266 shares in the last quarter. Jacobs Levy Equity Management Inc. raised its position in NETGEAR by 43.7% during the third quarter. Jacobs Levy Equity Management Inc. now owns 717,973 shares of the communications equipment provider’s stock valued at $23,255,000 after buying an additional 218,347 shares during the period. Finally, Cinctive Capital Management LP acquired a new position in NETGEAR during the third quarter valued at $6,433,000. 82.97% of the stock is currently owned by hedge funds and other institutional investors.

About NETGEAR

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.