NETGEAR (NASDAQ:NTGR) Shares Gap Down - Should You Sell?

NETGEAR, Inc. (NASDAQ:NTGR - Get Free Report) gapped down prior to trading on Thursday . The stock had previously closed at $28.15, but opened at $26.00. NETGEAR shares last traded at $26.26, with a volume of 63,637 shares.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on the stock. StockNews.com raised shares of NETGEAR from a "hold" rating to a "buy" rating in a report on Friday, November 1st. Raymond James upped their price target on shares of NETGEAR from $22.00 to $29.00 and gave the stock an "outperform" rating in a report on Thursday.

NETGEAR Stock Up 3.3 %

The firm has a market capitalization of $873.17 million, a P/E ratio of 75.88 and a beta of 0.83. The firm's 50-day simple moving average is $26.93 and its 200-day simple moving average is $22.13.

NETGEAR (NASDAQ:NTGR - Get Free Report) last announced its earnings results on Wednesday, February 5th. The communications equipment provider reported ($0.24) earnings per share (EPS) for the quarter, hitting the consensus estimate of ($0.24). NETGEAR had a net margin of 1.83% and a negative return on equity of 9.24%. As a group, analysts expect that NETGEAR, Inc. will post -1.84 EPS for the current fiscal year.

Insider Activity

In related news, Director Thomas H. Waechter sold 2,000 shares of the business's stock in a transaction that occurred on Wednesday, December 18th. The stock was sold at an average price of $30.42, for a total value of $60,840.00. Following the completion of the sale, the director now owns 61,135 shares in the company, valued at $1,859,726.70. The trade was a 3.17 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Corporate insiders own 7.00% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in NTGR. Quarry LP boosted its stake in shares of NETGEAR by 66.5% in the 3rd quarter. Quarry LP now owns 1,856 shares of the communications equipment provider's stock valued at $37,000 after purchasing an additional 741 shares in the last quarter. Franklin Resources Inc. boosted its position in NETGEAR by 5.3% during the third quarter. Franklin Resources Inc. now owns 42,673 shares of the communications equipment provider's stock valued at $883,000 after buying an additional 2,166 shares during the period. New York State Common Retirement Fund grew its stake in shares of NETGEAR by 49.3% during the fourth quarter. New York State Common Retirement Fund now owns 7,566 shares of the communications equipment provider's stock valued at $211,000 after buying an additional 2,500 shares during the last quarter. New York State Teachers Retirement System purchased a new position in shares of NETGEAR in the fourth quarter worth about $72,000. Finally, R Squared Ltd bought a new stake in shares of NETGEAR in the 4th quarter valued at about $72,000. 82.97% of the stock is owned by hedge funds and other institutional investors.

About NETGEAR

NETGEAR, Inc provides connectivity solutions the Americas; Europe, the Middle East, Africa; and the Asia Pacific. The company operates in two segments, Connected Home, and NETGEAR for Business. The Connected Home segment offers Wi-Fi routers and home Wi-Fi mesh systems, Wi-Fi hotspots, digital displays, broadband modems, Wi-Fi gateways, Wi-Fi range extenders, powerline adapters, and Wi-Fi network adapters; and provides value-added service offerings, including security and privacy, technical support, and parental controls.