NetGear’s (NTGR) “Buy” Rating Reiterated at Guggenheim

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Guggenheim restated their buy rating on shares of NetGear (NASDAQ:NTGR) in a report published on Tuesday.

“We estimate 2018 revenues +8%Y/ Y to $1.53B and +4%Y/Y to $1.07B ex-ARLO, driven by Orbi mesh and WiFi routers, a return to growth in SMB switching and stabilization in Service Provider; with profits rebounding after ARLO and its separate costs fully spin out. ARLO spin-out enables return to profit focus – On Aug 3, NTGR began to spin out ARLO through an IPO of 11.7mil shares at $16 per share, and continues to own 84.2% but with its stated intention being to distribute the remaining ARLO ownership interest to its stockholders sometime after a 145-day lock-up period, as soon as the transaction can be tax-free for US federal income tax purposes.”,” Guggenheim’s analyst commented.

A number of other research analysts have also recently issued reports on NTGR. Zacks Investment Research cut shares of NetGear from a strong-buy rating to a strong sell rating in a report on Wednesday, May 2nd. ValuEngine upgraded shares of NetGear from a hold rating to a buy rating in a report on Wednesday, May 2nd. BidaskClub cut shares of NetGear from a strong-buy rating to a buy rating in a report on Tuesday, June 26th. BWS Financial boosted their price objective on shares of NetGear from $75.00 to $85.00 and gave the company a buy rating in a report on Monday, July 9th. Finally, TheStreet cut shares of NetGear from a b- rating to a c+ rating in a report on Monday, August 13th. One investment analyst has rated the stock with a hold rating and five have given a buy rating to the company’s stock. NetGear presently has an average rating of Buy and an average target price of $67.75.

NTGR opened at $71.10 on Tuesday. The company has a market cap of $2.35 billion, a P/E ratio of 30.24 and a beta of 1.99. NetGear has a fifty-two week low of $44.20 and a fifty-two week high of $78.30.

NetGear (NASDAQ:NTGR) last issued its quarterly earnings data on Monday, July 23rd. The communications equipment provider reported $0.57 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.51 by $0.06. The firm had revenue of $366.80 million during the quarter, compared to analysts’ expectations of $350.60 million. NetGear had a negative net margin of 0.74% and a positive return on equity of 9.97%. The business’s revenue for the quarter was up 10.9% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.60 earnings per share. analysts predict that NetGear will post 2.2 EPS for the current year.

In related news, Chairman Patrick Cs Lo sold 13,999 shares of the business’s stock in a transaction that occurred on Monday, July 2nd. The shares were sold at an average price of $63.45, for a total transaction of $888,236.55. Following the completion of the transaction, the chairman now owns 203,279 shares in the company, valued at $12,898,052.55. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, SVP Michael F. Falcon sold 521 shares of the business’s stock in a transaction that occurred on Friday, August 24th. The shares were sold at an average price of $72.80, for a total transaction of $37,928.80. Following the transaction, the senior vice president now owns 41,326 shares of the company’s stock, valued at approximately $3,008,532.80. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 42,574 shares of company stock valued at $2,793,557. Corporate insiders own 5.10% of the company’s stock.

Several institutional investors have recently added to or reduced their stakes in the company. FMR LLC boosted its holdings in shares of NetGear by 0.5% in the second quarter. FMR LLC now owns 4,729,564 shares of the communications equipment provider’s stock valued at $295,598,000 after buying an additional 22,490 shares during the period. BlackRock Inc. boosted its holdings in shares of NetGear by 5.5% in the second quarter. BlackRock Inc. now owns 4,566,762 shares of the communications equipment provider’s stock valued at $285,423,000 after buying an additional 236,386 shares during the period. First Trust Advisors LP boosted its holdings in shares of NetGear by 3.7% in the second quarter. First Trust Advisors LP now owns 1,437,340 shares of the communications equipment provider’s stock valued at $89,834,000 after buying an additional 50,642 shares during the period. Northern Trust Corp boosted its holdings in shares of NetGear by 0.7% in the first quarter. Northern Trust Corp now owns 760,450 shares of the communications equipment provider’s stock valued at $43,499,000 after buying an additional 5,232 shares during the period. Finally, Macquarie Group Ltd. boosted its holdings in shares of NetGear by 1.6% in the second quarter. Macquarie Group Ltd. now owns 699,102 shares of the communications equipment provider’s stock valued at $43,694,000 after buying an additional 10,954 shares during the period.

About NetGear

NETGEAR, Inc engages in the provision of Internet connected products to consumers, businesses, and service providers. It operates through the following business segments: Arlo, Connected Home, and SMB. The Arlo segment offers internet-connected products for consumers and businesses that provide security and safety.

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