NETGEAR (NASDAQ:NTGR) Releases Earnings Results, Beats Expectations By $0.21 EPS

NETGEAR (NASDAQ:NTGR) issued its quarterly earnings data on Wednesday. The communications equipment provider reported $0.26 earnings per share for the quarter, beating analysts’ consensus estimates of $0.05 by $0.21, FiscalAI reports. The business had revenue of $182.47 million for the quarter, compared to analysts’ expectations of $177.26 million. NETGEAR had a negative net margin of 3.73% and a negative return on equity of 3.81%.

NETGEAR Stock Down 3.7%

Shares of NASDAQ NTGR traded down $0.78 during mid-day trading on Wednesday, hitting $20.17. 887,115 shares of the company traded hands, compared to its average volume of 473,241. NETGEAR has a 1 year low of $18.75 and a 1 year high of $36.86. The stock has a market capitalization of $572.83 million, a price-to-earnings ratio of -22.16 and a beta of 1.15. The business has a 50 day moving average of $23.87 and a two-hundred day moving average of $26.94.

Insider Transactions at NETGEAR

In other NETGEAR news, insider Pramod Badjate sold 3,000 shares of the company’s stock in a transaction dated Monday, February 2nd. The shares were sold at an average price of $20.97, for a total transaction of $62,910.00. Following the completion of the sale, the insider directly owned 144,586 shares of the company’s stock, valued at approximately $3,031,968.42. This represents a 2.03% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders own 2.30% of the company’s stock.

Hedge Funds Weigh In On NETGEAR

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Jacobs Levy Equity Management Inc. raised its stake in NETGEAR by 43.7% during the 3rd quarter. Jacobs Levy Equity Management Inc. now owns 717,973 shares of the communications equipment provider’s stock valued at $23,255,000 after purchasing an additional 218,347 shares during the period. Caxton Associates LLP purchased a new position in shares of NETGEAR during the third quarter valued at $380,000. Qube Research & Technologies Ltd raised its position in NETGEAR by 74.4% during the third quarter. Qube Research & Technologies Ltd now owns 267,802 shares of the communications equipment provider’s stock valued at $8,674,000 after buying an additional 114,278 shares during the period. Northwestern Mutual Wealth Management Co. lifted its stake in NETGEAR by 28.5% in the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 6,757 shares of the communications equipment provider’s stock worth $219,000 after acquiring an additional 1,497 shares in the last quarter. Finally, Brevan Howard Capital Management LP acquired a new stake in NETGEAR during the 3rd quarter worth about $405,000. Institutional investors and hedge funds own 82.97% of the company’s stock.

Analyst Ratings Changes

NTGR has been the subject of several recent analyst reports. Stifel Nicolaus increased their price objective on shares of NETGEAR from $35.00 to $40.00 and gave the company a “buy” rating in a report on Friday, October 17th. Zacks Research lowered NETGEAR from a “strong-buy” rating to a “hold” rating in a research note on Monday, October 20th. Raymond James Financial boosted their price objective on NETGEAR from $29.00 to $37.00 and gave the stock an “outperform” rating in a research note on Thursday, October 30th. Wall Street Zen cut NETGEAR from a “hold” rating to a “sell” rating in a research note on Saturday, January 17th. Finally, Weiss Ratings reaffirmed a “sell (d)” rating on shares of NETGEAR in a report on Monday, December 29th. Two research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $37.33.

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.