Netgear Inc. (NTGR) stock slips after being downgraded at BWS Financial

Netgear Inc. (NASDAQ: NTGR) shares fell in early trading today on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.

Shares of Netgear Inc. (NASDAQ: NTGR) were downgraded by analysts at BWS Financial in a note to their investors today. With a rating of Hold on the shares, the company has a 52-week high of $60.82. The one-year price target of $59.20 is a decrease compared to the opening price of $59.63, causing a fair amount of other analysts to report on the company in recent days. Important and fundamental digressions in the company’s operations, future outlook or industry can cause downgrades as the analysts consider that the future prospects for the security have weakened from the original recommendation.

Meanwhile, US stock opened lower amid concerns surrounding the U.S. Department of Justice’s probe into Deutsche Bank AG.

The S&P 500 SPX, -0.25% slipped 5 points, or 0.2%, to 2,162.

The Dow industrials DJIA, -0.26% fell 55 points, or 0.3%, to 18,252.

The Nasdaq Composite COMP, -0.11% was off 13 points, or 0.3%, to 5,298

Shares of Netgear Inc. (NASDAQ: NTGR) opened at $59.63 yesterday trading between $58.52 and $60.25, and last traded at $58.84, which is a decrease of $1.65 per share or -0.03 over the previous closing price.

Netgear Inc. (NASDAQ: NTGR) now has a market cap of 1.93B.

Netgear Inc.Trading Volume

81,569 shares crossed the trading desk yesterday, lower than normal, out of a total float 32,133,000. Look for trading volume to pick up in the coming days as investors often use increases in trading volume to pinpoint large volume aggregation or distribution by institutional investors.

However, just a day of significant buy side trading is not enough to affirm a trend. So market traders will continue to look for institutional sponsorship as a cue that financial institutions are moving forward.

Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.

These instituitional investors have substantial teams of analysts that research thousands of stocks, so it is good validation to see them buying a stock you are researching.

Netgear Inc. Moving Averages

A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.

This is because the average acts like a floor (support), so the price bounces up off of it.

In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.

By spotting trends, moving averages allow traders to make those trends work in their favor and increase the number of successful trades.

With that in mind, Netgear Inc. (NASDAQ: NTGR) now has a 50-day MA of $57.56 and 200-day MA of $47.93. It has traded in a 52-week range between $28.69 – 60.82 and today’s last price is 0.03% lower than the 52 week high of $60.82.

Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors identify companies that have been successful at growing their earnings at least 25% or more for the past 3 years.

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