NetGear (NASDAQ:NTGR) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report issued on Tuesday, Zacks.com reports. The firm presently has a $38.00 target price on the communications equipment provider’s stock. Zacks Investment Research‘s price objective points to a potential upside of 10.85% from the company’s current price.

According to Zacks, “NETGEAR is benefiting from its Orbi, Nighthawk Pro Gaming, cable modems and gateways as well as SMB switching portfolio, particularly PoE and ProAV switches. The company is confident of retaining a competitive edge in the industry, based on Wi-Fi 6 standards. It is excited to be an integral part of AT&T’s commitment to be the first to introduce mobile 5G services in the United States. The company continues to capitalize on technology inflections, create new product categories and build recurring service revenues. NETGEAR further aims to augment the effectiveness and efficiency of its hybrid cloud access network and strengthen its position in the market through trendy product offerings. However, the stock has underperformed the industry in the past year on average. NETGEAR’s decision to split into two independent companies involves a fair amount of uncertainty and may lead to lower revenues.”

A number of other equities analysts have also commented on NTGR. BidaskClub lowered NetGear from a “hold” rating to a “sell” rating in a report on Wednesday, March 27th. ValuEngine downgraded NetGear from a “buy” rating to a “hold” rating in a research report on Wednesday, January 2nd. Two research analysts have rated the stock with a sell rating, one has issued a hold rating and four have assigned a buy rating to the company’s stock. NetGear presently has a consensus rating of “Hold” and an average target price of $64.40.

NetGear stock opened at $34.28 on Tuesday. NetGear has a one year low of $31.80 and a one year high of $78.30. The firm has a market capitalization of $1.09 billion, a PE ratio of 19.70 and a beta of 1.81.

NetGear (NASDAQ:NTGR) last posted its quarterly earnings results on Wednesday, February 6th. The communications equipment provider reported $0.48 EPS for the quarter, missing the Zacks’ consensus estimate of $0.74 by ($0.26). NetGear had a positive return on equity of 8.66% and a negative net margin of 0.19%. The company had revenue of $288.90 million during the quarter, compared to the consensus estimate of $409.26 million. During the same period in the previous year, the business earned $0.71 earnings per share. NetGear’s revenue was up 5.4% on a year-over-year basis. On average, research analysts anticipate that NetGear will post 2.52 EPS for the current fiscal year.

In related news, SVP Tamesa Rogers sold 1,987 shares of the stock in a transaction on Friday, February 1st. The stock was sold at an average price of $39.45, for a total value of $78,387.15. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Barbara Vaughn Scherer sold 683 shares of the stock in a transaction on Friday, January 18th. The stock was sold at an average price of $38.61, for a total value of $26,370.63. Following the completion of the sale, the director now owns 14,450 shares in the company, valued at approximately $557,914.50. The disclosure for this sale can be found here. Insiders sold 45,627 shares of company stock worth $1,659,576 in the last quarter. 5.10% of the stock is currently owned by company insiders.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Vanguard Group Inc raised its position in NetGear by 2.3% during the third quarter. Vanguard Group Inc now owns 3,125,034 shares of the communications equipment provider’s stock valued at $196,410,000 after purchasing an additional 71,021 shares in the last quarter. Marshall Wace North America L.P. purchased a new stake in NetGear during the third quarter valued at about $212,000. Vanguard Group Inc. raised its position in NetGear by 2.3% during the third quarter. Vanguard Group Inc. now owns 3,125,034 shares of the communications equipment provider’s stock valued at $196,410,000 after purchasing an additional 71,021 shares in the last quarter. Morgan Stanley raised its position in NetGear by 73.5% during the third quarter. Morgan Stanley now owns 234,066 shares of the communications equipment provider’s stock valued at $14,711,000 after purchasing an additional 99,152 shares in the last quarter. Finally, Legal & General Group Plc raised its position in NetGear by 9.0% during the third quarter. Legal & General Group Plc now owns 74,289 shares of the communications equipment provider’s stock valued at $4,668,000 after purchasing an additional 6,114 shares in the last quarter. Institutional investors and hedge funds own 99.99% of the company’s stock.

NetGear Company Profile

NETGEAR, Inc designs, develops, and markets networking and Internet connected products for consumers, businesses, and service providers. It operates in two segments, Connected Home, and Small and Medium Business. The company offers smart home/connected home/broadband access products, such as broadband modems, WiFi gateways, WiFi hotspots, WiFi routers and home WiFi systems, WiFi range extenders, Powerline adapters and bridges, WiFi network adapters, and digital canvasses; and value added service offerings, including technical support, parental controls, and cybersecurity protection.

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