Wall Street Zen Downgrades NETGEAR (NASDAQ:NTGR) to Sell

NETGEAR (NASDAQ:NTGR) was downgraded by research analysts at Wall Street Zen from a “hold” rating to a “sell” rating in a research note issued on Sunday.

Several other research firms also recently weighed in on NTGR. Stifel Nicolaus set a $36.00 target price on NETGEAR in a research report on Thursday, February 5th. Weiss Ratings reaffirmed a “sell (d)” rating on shares of NETGEAR in a research note on Monday, December 29th. Finally, Zacks Research downgraded NETGEAR from a “hold” rating to a “strong sell” rating in a research note on Monday, February 9th. Two research analysts have rated the stock with a Buy rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, NETGEAR has an average rating of “Hold” and an average target price of $36.00.

NETGEAR Price Performance

Shares of NETGEAR stock opened at $20.62 on Friday. The firm has a market cap of $579.63 million, a PE ratio of -33.26 and a beta of 1.15. The company has a 50 day simple moving average of $22.15 and a two-hundred day simple moving average of $26.38. NETGEAR has a 1 year low of $18.75 and a 1 year high of $36.86.

NETGEAR (NASDAQ:NTGR) last announced its earnings results on Wednesday, February 4th. The communications equipment provider reported $0.26 EPS for the quarter, beating analysts’ consensus estimates of $0.05 by $0.21. The business had revenue of $182.47 million during the quarter, compared to analysts’ expectations of $177.26 million. NETGEAR had a negative net margin of 2.56% and a negative return on equity of 2.40%. The firm’s revenue was up .0% on a year-over-year basis. During the same period in the prior year, the company earned ($0.06) earnings per share. As a group, research analysts anticipate that NETGEAR will post -1.84 earnings per share for the current year.

Insider Transactions at NETGEAR

In related news, insider Pramod Badjate sold 3,000 shares of the business’s stock in a transaction that occurred on Monday, February 2nd. The stock was sold at an average price of $20.97, for a total value of $62,910.00. Following the transaction, the insider directly owned 144,586 shares of the company’s stock, valued at approximately $3,031,968.42. The trade was a 2.03% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 2.30% of the company’s stock.

Institutional Investors Weigh In On NETGEAR

Several institutional investors and hedge funds have recently modified their holdings of NTGR. Allianz Asset Management GmbH grew its stake in shares of NETGEAR by 169.0% in the 3rd quarter. Allianz Asset Management GmbH now owns 109,322 shares of the communications equipment provider’s stock worth $3,541,000 after buying an additional 68,683 shares in the last quarter. Leuthold Group LLC bought a new position in shares of NETGEAR in the 3rd quarter valued at about $3,309,000. Russell Investments Group Ltd. grew its position in NETGEAR by 77.0% in the second quarter. Russell Investments Group Ltd. now owns 122,703 shares of the communications equipment provider’s stock worth $3,538,000 after acquiring an additional 53,370 shares in the last quarter. Arrowstreet Capital Limited Partnership increased its stake in NETGEAR by 10.1% during the second quarter. Arrowstreet Capital Limited Partnership now owns 690,981 shares of the communications equipment provider’s stock worth $20,087,000 after acquiring an additional 63,398 shares during the last quarter. Finally, Prudential Financial Inc. purchased a new stake in NETGEAR during the second quarter valued at approximately $1,744,000. Institutional investors own 82.97% of the company’s stock.

Key Headlines Impacting NETGEAR

Here are the key news stories impacting NETGEAR this week:

• Positive Sentiment: Zacks Research raised several 2027 quarter estimates and materially improved its FY2027 EPS loss forecast (to -$0.60 from -$0.83), signaling an expected recovery in 2027. This upside to medium‑term earnings expectations can support share gains. MarketBeat NTGR: Zacks revisions
• Positive Sentiment: Coverage in outlets including InsiderMonkey highlights Netgear’s 2025 revenue turnaround and enterprise push (acquisitions and partner expansion), reinforcing a growth narrative that may attract growth‑oriented investors. Netgear Returns to Growth in 2025
• Neutral Sentiment: Analytical pieces (e.g., Yahoo Finance) discuss shifting investment targets and margin assumptions — useful for re‑rating scenarios but not an immediate catalyst by themselves. How The NETGEAR (NTGR) Investment Story Is Shifting
• Negative Sentiment: Zacks downgraded near‑term estimates — lowering FY2026 to -$0.81 and cutting several 2026 quarter forecasts (Q1/Q2/Q3 2026), and it maintains a “Strong Sell” rating. Near‑term earnings deterioration and a continued negative rating weigh on investor sentiment. MarketBeat NTGR: Zacks cuts

NETGEAR Company Profile

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.