NETGEAR (NASDAQ:NTGR) Reaches New 1-Year Low – What’s Next?

NETGEAR, Inc. (NASDAQ:NTGR) reached a new 52-week low during trading on Thursday. The stock traded as low as $18.89 and last traded at $18.81, with a volume of 436,129 shares changing hands. The stock had previously closed at $22.32.

Key Stories Impacting NETGEAR

Here are the key news stories impacting NETGEAR this week:

• Positive Sentiment: NETGEAR reported quarterly earnings of $0.13 per share, above the consensus estimate of a $0.05 loss and slightly ahead of $0.12 a year earlier. Zacks Q3 earnings article
• Negative Sentiment: Revenue was $167.35 million, below analysts’ $170 million estimate and down 9.3% year over year. Reports also said the company’s quarterly loss widened, highlighting ongoing pressure despite the per-share earnings beat. MarketBeat earnings report RTTNews report on Q3 loss
• Negative Sentiment: For Q4, NETGEAR forecast revenue of $160 million to $175 million and a non-GAAP operating margin of just 0% to 3%. The limited margin outlook and potential for revenue to remain subdued could constrain expectations for near-term profitability. Q4 outlook

Wall Street Analyst Weigh In

A number of equities analysts have recently weighed in on the company. Stifel Nicolaus lowered their target price on NETGEAR from $36.00 to $30.00 and set a “buy” rating on the stock in a research report on Monday, October 5th. Wall Street Zen upgraded shares of NETGEAR from a “sell” rating to a “hold” rating in a research note on Sunday, September 6th. Finally, Weiss Ratings restated a “sell (d)” rating on shares of NETGEAR in a report on Monday, September 21st. One equities research analyst has rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $30.00.

NETGEAR Stock Performance

The business has a 50 day simple moving average of $22.27 and a 200-day simple moving average of $22.95. The firm has a market cap of $516.15 million, a price-to-earnings ratio of -20.42 and a beta of 1.22.

NETGEAR (NASDAQ:NTGR) last posted its earnings results on Wednesday, November 4th. The communications equipment provider reported $0.13 earnings per share for the quarter, beating analysts’ consensus estimates of ($0.05) by $0.18. The company had revenue of $167.35 million for the quarter, compared to analyst estimates of $170.00 million. NETGEAR had a negative return on equity of 2.79% and a negative net margin of 3.71%. The company’s revenue for the quarter was down 9.3% on a year-over-year basis. During the same quarter last year, the company earned $0.12 earnings per share. As a group, research analysts anticipate that NETGEAR, Inc. will post -0.57 earnings per share for the current year.

Institutional Trading of NETGEAR

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

NETGEAR Company Profile

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.