NETGEAR (NASDAQ:NTGR) Announces Earnings Results, Misses Expectations By $0.30 EPS

NETGEAR (NASDAQ:NTGR – Get Rating) released its earnings results on Wednesday. The communications equipment provider reported ($0.28) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.02 by ($0.30), MarketWatch Earnings reports. NETGEAR had a negative net margin of 2.90% and a negative return on equity of 4.34%. During the same quarter in the previous year, the company earned $0.72 earnings per share.

NTGR stock traded down $0.42 during midday trading on Friday, reaching $21.70. 386,066 shares of the company’s stock traded hands, compared to its average volume of 234,798. The company has a market capitalization of $632.77 million, a P/E ratio of -19.73 and a beta of 0.74. NETGEAR has a fifty-two week low of $19.41 and a fifty-two week high of $41.96. The business has a 50-day moving average price of $24.12 and a two-hundred day moving average price of $27.16.

In other news, SVP Vikram Mehta sold 1,844 shares of the business’s stock in a transaction on Thursday, February 3rd. The shares were sold at an average price of $25.60, for a total transaction of $47,206.40. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, SVP Heidi Cormack sold 2,105 shares of the business’s stock in a transaction on Thursday, April 21st. The stock was sold at an average price of $22.52, for a total transaction of $47,404.60. Following the transaction, the senior vice president now directly owns 61,421 shares in the company, valued at $1,383,200.92. The disclosure for this sale can be found here. Insiders own 4.70% of the company’s stock.

Several large investors have recently modified their holdings of NTGR. Royal Bank of Canada increased its stake in shares of NETGEAR by 187.3% in the second quarter. Royal Bank of Canada now owns 839 shares of the communications equipment provider’s stock worth $32,000 after buying an additional 547 shares during the last quarter. Morgan Stanley increased its stake in shares of NETGEAR by 104.0% in the second quarter. Morgan Stanley now owns 267,118 shares of the communications equipment provider’s stock worth $10,236,000 after buying an additional 136,170 shares during the last quarter. Millennium Management LLC bought a new stake in shares of NETGEAR in the third quarter worth $867,000. JPMorgan Chase & Co. increased its stake in shares of NETGEAR by 10.2% in the fourth quarter. JPMorgan Chase & Co. now owns 85,353 shares of the communications equipment provider’s stock worth $2,493,000 after buying an additional 7,898 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. increased its stake in shares of NETGEAR by 4.6% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 345,477 shares of the communications equipment provider’s stock worth $10,092,000 after buying an additional 15,325 shares during the last quarter. Institutional investors and hedge funds own 97.97% of the company’s stock.

A number of equities research analysts recently issued reports on the stock. Raymond James lowered their target price on shares of NETGEAR from $34.00 to $31.00 and set an “outperform” rating for the company in a report on Thursday, February 3rd. Zacks Investment Research downgraded shares of NETGEAR from a “buy” rating to a “hold” rating and set a $26.00 target price for the company. in a report on Tuesday, April 5th. TheStreet downgraded shares of NETGEAR from a “c” rating to a “d+” rating in a report on Thursday. BWS Financial lowered their target price on shares of NETGEAR from $30.00 to $27.00 in a report on Monday, April 18th. Finally, Deutsche Bank Aktiengesellschaft reduced their price target on shares of NETGEAR from $25.00 to $22.00 in a research report on Thursday. Four investment analysts have rated the stock with a hold rating and one has assigned a buy rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $26.50.

NETGEAR Company Profile (Get Rating)

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

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