NETGEAR (NASDAQ:NTGR) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Tuesday, Zacks.com reports. They currently have a $45.00 target price on the communications equipment provider’s stock. Zacks Investment Research‘s price target would suggest a potential upside of 11.30% from the company’s previous close.
According to Zacks, “NETGEAR is well positioned to benefit from robust networking solutions. The company maintains a competitive edge with product launches, based on Wi-Fi 6 standards. Its revenues are likely to be driven by the rapid increase in Internet of Things devices and the advent of Smart Home. Increasing demand for connected home products in the wake of the growing work-from-home trend boosted its revenues. It intends to capitalize on technology inflections, create new categories and build recurring service revenues to maintain its market leadership. However, supply chain disruptions stemming from the pandemic might erode NETGEAR’s profitability in the near term. It operates in a fast-evolving market and expects competition to intensify on price. Its future success depends on its ability to develop new products that have broad market acceptance.”
Other research analysts have also recently issued reports about the stock. BWS Financial lifted their price target on shares of NETGEAR from $45.00 to $58.00 and gave the company a “buy” rating in a research report on Thursday, February 4th. Deutsche Bank Aktiengesellschaft lifted their price target on shares of NETGEAR from $40.00 to $44.00 and gave the company a “hold” rating in a research report on Thursday, February 4th. Finally, Raymond James lifted their price target on shares of NETGEAR from $45.00 to $50.00 and gave the company an “outperform” rating in a research report on Thursday, February 4th. Three equities research analysts have rated the stock with a hold rating and two have given a buy rating to the company’s stock. NETGEAR currently has an average rating of “Hold” and an average target price of $48.00.
NETGEAR (NASDAQ:NTGR) last announced its earnings results on Wednesday, February 3rd. The communications equipment provider reported $0.99 earnings per share for the quarter, beating analysts’ consensus estimates of $0.84 by $0.15. The firm had revenue of $367.07 million for the quarter, compared to analyst estimates of $346.29 million. NETGEAR had a net margin of 2.36% and a return on equity of 4.38%. The company’s revenue for the quarter was up 45.1% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.34 EPS. As a group, sell-side analysts expect that NETGEAR will post 1.58 earnings per share for the current fiscal year.
In other news, SVP Andrew Wonki Kim sold 781 shares of NETGEAR stock in a transaction that occurred on Tuesday, January 19th. The shares were sold at an average price of $38.57, for a total value of $30,123.17. Following the completion of the sale, the senior vice president now directly owns 74,868 shares in the company, valued at $2,887,658.76. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, SVP David John Henry sold 11,718 shares of NETGEAR stock in a transaction that occurred on Wednesday, January 27th. The stock was sold at an average price of $43.00, for a total transaction of $503,874.00. Following the completion of the sale, the senior vice president now owns 36,719 shares of the company’s stock, valued at $1,578,917. The disclosure for this sale can be found here. Insiders sold 136,310 shares of company stock valued at $5,817,464 over the last ninety days. Corporate insiders own 5.40% of the company’s stock.
Several hedge funds have recently made changes to their positions in NTGR. SummerHaven Investment Management LLC bought a new stake in shares of NETGEAR in the fourth quarter worth approximately $706,000. Victory Capital Management Inc. grew its position in NETGEAR by 17.9% during the fourth quarter. Victory Capital Management Inc. now owns 2,712,089 shares of the communications equipment provider’s stock valued at $110,192,000 after buying an additional 410,933 shares during the period. Norges Bank bought a new stake in NETGEAR during the fourth quarter valued at approximately $14,894,000. BlackRock Inc. grew its position in NETGEAR by 5.4% during the fourth quarter. BlackRock Inc. now owns 4,870,455 shares of the communications equipment provider’s stock valued at $197,885,000 after buying an additional 248,970 shares during the period. Finally, JPMorgan Chase & Co. grew its position in NETGEAR by 139.3% during the third quarter. JPMorgan Chase & Co. now owns 143,449 shares of the communications equipment provider’s stock valued at $4,448,000 after buying an additional 83,502 shares during the period. Hedge funds and other institutional investors own 94.37% of the company’s stock.
NETGEAR, Inc designs, develops, and markets networking and Internet connected products for consumers, businesses, and service providers. It operates in two segments, Connected Home, and Small and Medium Business. The company offers smart home/connected home/broadband access products, such as broadband modems, WiFi gateways, WiFi hotspots, WiFi routers and home WiFi systems, WiFi range extenders, Powerline adapters and bridges, WiFi network adapters, and digital canvasses; and value added service offerings, including technical support, parental controls, and cybersecurity protection.
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