Unusual Options Activity for NETGEAR, Inc. (NASDAQ:NTGR)

On Wednesday, NETGEAR, Inc. (NASDAQ:NTGR) experienced a notable spike in options trading activity. Traders acquired 2,262 call options for the company, signifying a striking increase of about 210% when compared to the average volume of 729 call options typically seen.

Institutional Investors Increasing Their Stakes

Several hedge funds and institutional investors have recently adjusted their positions in NETGEAR’s stock. Quarry LP bolstered its holdings by 66.5% in the third quarter, now owning 1,856 shares worth $37,000 after acquiring an additional 741 shares last quarter. Rhumbline Advisers raised its stake by 4.2% during the second quarter and owns 47,101 shares valued at $721,000 after purchasing 1,904 more shares. Franklin Resources Inc. increased its position by 5.3% in the third quarter, owning 42,673 shares worth $883,000 following the addition of 2,166 shares. Barclays PLC also increased its holdings in NETGEAR by 10.5% during the third quarter, now owning 43,385 shares valued at $870,000 after buying 4,125 shares. Lastly, Meeder Asset Management Inc. entered the fray by acquiring a new stake in NETGEAR valued at approximately $91,000. Overall, 82.97% of NETGEAR’s stock is currently held by institutional investors and hedge funds.

Overview of NETGEAR Stock Performance

On the trading day, NETGEAR's stock rose by $4.00, reaching $29.68. A total of 278,249 shares exchanged hands, which is higher than its average volume of 269,608 shares. The company boasts a market capitalization of $853.89 million, with a price-to-earnings ratio of 46.11 and a beta of 0.86. NETGEAR's 50-day moving average stands at $23.22, while the 200-day moving average is reported at $18.72. The company's stock has fluctuated within a range of a one-year low of $10.48 and a high of $31.55.

Growth Outlook According to Analysts

In a separate report on November 1st, StockNews.com upgraded NETGEAR from a "hold" rating to a "buy" rating, indicating a positive outlook on the company's potential growth.

Company Profile of NETGEAR, Inc.

NETGEAR, Inc. provides connectivity solutions across different regions including the Americas, Europe, the Middle East, Africa, and Asia Pacific. The company operates through two segments: Connected Home and NETGEAR for Business. The Connected Home segment offers various products such as Wi-Fi routers, home mesh systems, mobile hotspots, digital displays, broadband modems, Wi-Fi gateways, range extenders, powerline adapters, and network adapters. Additionally, it provides value-added services like security, technical support, and parental controls.

Considerations Before Investing

Potential investors should be aware of recommendations made by research analysts. Despite NETGEAR holding a "hold" rating currently, analysts highlight five other stocks that are considered better investments at this time.

NETGEAR, Options, Investing