Thomas H. Waechter, a director at NETGEAR , Inc. (NASDAQ:NTGR), recently sold 2,183 shares of the company's common stock, according to a filing with the Securities and Exchange Commission. The shares were sold at a price of $25 each, totaling $54,575. Following this transaction, Waechter holds 63,135 shares of NETGEAR. The sale was conducted under a Rule 10b5-1 trading plan, which Waechter adopted earlier this year on February 29, 2024.
In other recent news, NETGEAR has reported a significant 27.1% sequential revenue increase in its third quarter of 2024, reaching $182.9 million. Despite this growth, the company noted a 7.6% decrease compared to the previous year. These results surpassed the company's revenue guidance and marked a return to profitability. A key achievement highlighted was a substantial growth in recurring revenue subscribers, which now stand at approximately 555,000.
The company also announced a strategic transformation, focusing on intelligent solutions and cybersecurity. This includes a plan for capital allocation involving share repurchases and investments in high-potential areas. The company's ProAV business saw an over 10% growth, and it launched the M7 Pro mobile hotspot, combining 5G and WiFi 7.
Looking forward, NETGEAR anticipates Q4 2024 revenue to range from $160 million to $175 million. The company plans to continue growing its recurring subscriber base and focusing on the NFB segment, while realigning investments from slower-growing sectors to high-potential areas. These are among the recent developments at NETGEAR.
InvestingPro Insights
As NETGEAR's director Thomas H. Waechter sells shares, it's worth examining the company's current financial position and market performance. According to InvestingPro data, NETGEAR's market capitalization stands at $688.75 million, with the stock trading near its 52-week high. This aligns with the company's strong recent performance, as evidenced by a 97.52% price total return over the past year and an impressive 104.9% return over the last six months.
Despite the recent insider sale, InvestingPro Tips highlight that NETGEAR's management has been aggressively buying back shares, potentially signaling confidence in the company's value. Additionally, NETGEAR holds more cash than debt on its balance sheet, which could provide financial flexibility in the current market environment.
However, investors should note that NETGEAR is trading at a high earnings multiple, with a P/E ratio of 35.68. This valuation comes despite analysts anticipating a sales decline in the current year, which could explain the director's decision to sell shares at this time.
For those seeking a deeper analysis, InvestingPro offers 16 additional tips on NETGEAR, providing a more comprehensive view of the company's financial health and market position.
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