NETGEAR (NASDAQ:NTGR) Share Price Breaks Above 200 Day Moving Average – Here’s Why

NETGEAR, Inc. (NASDAQ:NTGR) shares crossed above its 200-day moving average during trading on Tuesday. The stock has a 200-day moving average of $22.96 and traded as high as $23.57. NETGEAR shares last traded at $23.40, with a volume of 380,399 shares.

Wall Street Analyst Weigh In

NTGR has been the topic of a number of analyst reports. Weiss Ratings restated a “sell (d)” rating on shares of NETGEAR in a report on Monday, September 21st. Stifel Nicolaus lowered their price target on NETGEAR from $36.00 to $30.00 and set a “buy” rating for the company in a research report on Monday, October 5th. Finally, Wall Street Zen upgraded NETGEAR from a “sell” rating to a “hold” rating in a research note on Sunday, September 6th. Two analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $33.50.

NETGEAR Stock Performance

The firm has a market capitalization of $640.34 million, a P/E ratio of -25.33 and a beta of 1.15. The stock has a 50 day moving average of $22.18 and a 200-day moving average of $22.96.

NETGEAR (NASDAQ:NTGR) last posted its quarterly earnings results on Thursday, August 6th. The communications equipment provider reported $0.16 earnings per share (EPS) for the quarter, beating 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 for the quarter, compared to analyst estimates of $157.80 million. During the same quarter in the previous year, the firm posted $0.06 earnings per share. The company’s quarterly revenue was down 1.2% compared to the same quarter last year. As a group, sell-side analysts expect that NETGEAR, Inc. will post -0.57 EPS for the current year.

Insider Buying and Selling

In other 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 transaction of $71,640.00. Following the sale, the insider directly owned 154,073 shares in the company, valued at $3,679,263.24. This represents a 1.91% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, 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 currently owned by corporate insiders.

Hedge Funds Weigh In On NETGEAR

Large investors have recently modified their holdings of the company. Continuum Advisory LLC bought a new stake in NETGEAR during the second quarter valued at $25,000. State of Alaska Department of Revenue bought a new position in shares of NETGEAR in the third quarter worth approximately $27,000. Integrated Wealth Concepts LLC bought a new stake in NETGEAR during the second quarter valued at approximately $31,000. Persistent Asset Partners Ltd bought a new stake in NETGEAR during the second quarter valued at approximately $58,000. Finally, Fifth Third Bancorp grew its stake in NETGEAR by 6,085.7% in the 1st quarter. Fifth Third Bancorp now owns 3,031 shares of the communications equipment provider’s stock worth $66,000 after buying an additional 2,982 shares in the last quarter. 82.97% of the stock is currently owned by institutional investors.

About NETGEAR

NETGEAR, Inc develops and sells networking products and connected technology for consumers, small and medium-sized businesses, and service providers. Its portfolio includes wireless routers, mesh Wi-Fi systems, cable and 5G modems, Wi-Fi extenders, network switches, wireless access points, and related connectivity products.

The company markets consumer products under brands such as Nighthawk and Orbi, while its business-oriented offerings include managed networking, switching, wireless access points, and cloud-based network management through the NETGEAR Insight platform.