NETGEAR (NASDAQ:NTGR) Stock Price Down 5.4% – Should You Sell?

NETGEAR, Inc. (NASDAQ:NTGR) traded down 5.4% on Friday . The stock traded as low as $21.71 and last traded at $21.6590. Approximately 73,431 shares traded hands during mid-day trading, a decline of 84% from the average daily volume of 449,207 shares. The stock had previously closed at $22.90.

Analyst Upgrades and Downgrades

Several research firms have commented on NTGR. Weiss Ratings reissued a “sell (d)” rating on shares of NETGEAR in a report on Wednesday, June 24th. Wall Street Zen raised shares of NETGEAR from a “sell” rating to a “hold” rating in a research note on Sunday, September 6th. Two investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $36.50.

NETGEAR Stock Performance

The firm has a market cap of $577.85 million, a P/E ratio of -22.87 and a beta of 1.17. The company’s 50 day moving average is $22.69 and its 200 day moving average is $23.44.

NETGEAR (NASDAQ:NTGR) last announced its quarterly earnings results on Thursday, August 6th. The communications equipment provider reported $0.16 earnings per share (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 during the quarter, compared to the consensus estimate of $157.80 million. During the same period in the prior year, the business earned $0.06 earnings per share. The company’s revenue for the quarter was down 1.2% compared to the same quarter last year. On average, equities research analysts anticipate that NETGEAR, Inc. will post -0.52 EPS for the current year.

Insiders Place Their Bets

In other NETGEAR news, insider Pramod Badjate sold 3,000 shares of the company’s stock in a transaction dated Friday, July 31st. The stock was sold at an average price of $23.88, for a total value of $71,640.00. Following the completion of the transaction, the insider owned 154,073 shares of the company’s stock, valued at $3,679,263.24. This represents a 1.91% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 3.10% of the stock is owned by corporate insiders.

Institutional Trading of NETGEAR

Hedge funds and other institutional investors have recently made changes to their positions in the company. Continuum Advisory LLC acquired a new position in shares of NETGEAR in the second quarter valued at approximately $25,000. Integrated Wealth Concepts LLC acquired a new stake in NETGEAR during the 2nd quarter worth approximately $31,000. IFP Advisors Inc grew its holdings in NETGEAR by 161.7% during the 4th quarter. IFP Advisors Inc now owns 2,243 shares of the communications equipment provider’s stock worth $55,000 after acquiring an additional 1,386 shares during the last quarter. Persistent Asset Partners Ltd bought a new stake in NETGEAR during the 2nd quarter worth approximately $58,000. Finally, Fifth Third Bancorp grew its holdings in NETGEAR by 6,085.7% during the 1st quarter. Fifth Third Bancorp now owns 3,031 shares of the communications equipment provider’s stock worth $66,000 after acquiring an additional 2,982 shares during the last quarter. 82.97% of the stock is currently owned by institutional investors.

About NETGEAR

NETGEAR, Inc (NASDAQ: NTGR) develops and markets networking products and related services for consumers, businesses and service providers. Its portfolio includes wireless routers, mesh Wi-Fi systems, cable and cellular gateways, switches, wireless access points, network storage products and security cameras.

The company offers consumer-focused product lines such as Nighthawk and Orbi, as well as business networking solutions marketed under brands including NETGEAR Business and Insight.