NETGEAR (NASDAQ:NTGR) Shares Down 6.5% – Time to Sell?

NETGEAR, Inc. (NASDAQ:NTGR) dropped 6.5% during mid-day trading on Friday . The company traded as low as $22.73 and last traded at $22.71. 159,154 shares traded hands during mid-day trading, a decline of 66% from the average session volume of 469,989 shares. The stock had previously closed at $24.30.

Analysts Set New Price Targets

Separately, Weiss Ratings reaffirmed a “sell (d)” rating on shares of NETGEAR in a report on Wednesday, June 24th. Two research 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. According to MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $36.00.

NETGEAR Price Performance

The firm has a market capitalization of $628.86 million, a PE ratio of -26.56 and a beta of 1.20. The company’s fifty day simple moving average is $23.76 and its 200-day simple moving average is $23.23.

NETGEAR (NASDAQ:NTGR) last issued its quarterly earnings results on Thursday, August 6th. The communications equipment provider reported $0.16 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.01 by $0.15. The firm had revenue of $168.56 million for the quarter, compared to analyst estimates of $157.80 million. NETGEAR had a negative return on equity of 2.71% and a negative net margin of 3.58%.The business’s revenue was down 1.2% on a year-over-year basis. During the same period in the previous year, the company posted $0.06 earnings per share. Analysts forecast that NETGEAR, Inc. will post -0.5 earnings per share for the current year.

Insider Buying and Selling

In other NETGEAR news, Director Shravan Goli sold 3,381 shares of NETGEAR stock in a transaction on Monday, June 1st. The stock was sold at an average price of $26.89, for a total value of $90,915.09. Following the sale, the director owned 25,857 shares in the company, valued at $695,294.73. The trade was a 11.56% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Laura Durr sold 2,000 shares of the business’s stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $25.94, for a total transaction of $51,880.00. Following the completion of the sale, the director owned 43,059 shares in the company, valued at approximately $1,116,950.46. This trade represents a 4.44% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 12,085 shares of company stock worth $313,933 in the last quarter. 3.10% of the stock is currently owned by insiders.

Hedge Funds Weigh In On NETGEAR

A number of hedge funds have recently made changes to their positions in the stock. Persistent Asset Partners Ltd acquired a new stake in NETGEAR in the 2nd quarter valued at approximately $58,000. Bank of New York Mellon Corp purchased a new stake in shares of NETGEAR in the 2nd quarter valued at $3,152,000. State of Wyoming acquired a new position in NETGEAR during the 2nd quarter worth about $501,000. Hennion & Walsh Asset Management Inc. purchased a new stake in NETGEAR during the second quarter worth about $442,000. Finally, Bank of America Corp DE boosted its stake in shares of NETGEAR by 71.5% in the first quarter. Bank of America Corp DE now owns 240,730 shares of the communications equipment provider’s stock valued at $5,258,000 after purchasing an additional 100,368 shares during the period. Hedge funds and other institutional investors own 82.97% of the company’s stock.

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.