NetGear (NTGR) Earns “Hold” Rating from Zacks Investment Research
NetGear (NASDAQ:NTGR)‘s stock had its “hold” rating reaffirmed by Zacks Investment Research in a research report issued on Wednesday.
According to Zacks, “NETGEAR reported healthy results in third-quarter 2018, driven by the success of Orbi, cable modems and gateways, SMB switches and Arlo business. The company continues to capitalize on technology inflections, create new categories and build recurring service revenues in order to maintain its market leadership position and drive future growth. NETGEAR remains optimistic about the prospect of its Connected Home segment, on the back of strong traction across Orbi, and cable modems and gateways. However, the stock has underperformed the industry in the past three months on an average. NETGEAR’s decision to split into two independent companies involves a fair amount of uncertainty, which may lead to top-line fall going forward. The company’s business is highly seasonal leading to risk of volatility in cash flow and earnings. Cost advantage of NETGEAR's third-party manufacturers in China is likely to erode with higher tariffs.”
NTGR has been the topic of several other reports. Cowen began coverage on NetGear in a research note on Monday, October 1st. They set a “hold” rating and a $63.00 price objective on the stock. Raymond James set a $80.00 price objective on NetGear and gave the stock a “buy” rating in a research note on Wednesday, September 5th. BWS Financial set a $65.00 price objective on NetGear and gave the stock a “buy” rating in a research note on Friday, August 3rd. BidaskClub cut NetGear from a “buy” rating to a “hold” rating in a research note on Thursday, August 2nd. Finally, Guggenheim reissued a “buy” rating on shares of NetGear in a research note on Tuesday, August 28th. One investment analyst has rated the stock with a sell rating, two have assigned a hold rating and four have assigned a buy rating to the company. NetGear currently has an average rating of “Hold” and a consensus price target of $70.40.
In other news, Chairman Patrick Cs Lo sold 13,999 shares of the company’s stock in a transaction that occurred on Tuesday, September 4th. The stock was sold at an average price of $69.51, for a total transaction of $973,070.49. Following the transaction, the chairman now owns 207,279 shares of the company’s stock, valued at $14,407,963.29. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, SVP Michael F. Falcon sold 520 shares of the company’s stock in a transaction that occurred on Wednesday, October 24th. The shares were sold at an average price of $55.95, for a total value of $29,094.00. Following the transaction, the senior vice president now directly owns 41,325 shares in the company, valued at approximately $2,312,133.75. The disclosure for this sale can be found here. Insiders have sold 56,670 shares of company stock worth $3,472,795 over the last three months. 5.10% of the stock is currently owned by insiders.
Several institutional investors and hedge funds have recently added to or reduced their stakes in NTGR. Stevens Capital Management LP bought a new position in shares of NetGear during the second quarter valued at approximately $201,000. Fox Run Management L.L.C. bought a new position in shares of NetGear during the second quarter valued at approximately $239,000. Tower Research Capital LLC TRC bought a new position in shares of NetGear during the second quarter valued at approximately $267,000. Alps Advisors Inc. bought a new position in shares of NetGear during the second quarter valued at approximately $291,000. Finally, Bank of Montreal Can bought a new position in shares of NetGear during the second quarter valued at approximately $307,000. 98.25% of the stock is currently owned by hedge funds and other institutional investors.
NetGear Company Profile
NETGEAR, Inc designs, develops, and markets networking and Internet connected products for consumers, businesses, and service providers. The company operates in three segments: Arlo, Connected Home, and Small and Medium Business. It offers smart home/connected home/broadband access products, such as remote video security systems, broadband modems, WiFi gateways, WiFi hotspots, WiFi routers and home WiFi systems, WiFi range extenders, Powerline adapters and bridges, and WiFi network adapters.
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