Netgear Inc. (NASDAQ:NTGR) Chief Revenue Officer Michael A. Werdann has sold a significant portion of his stock in the company, according to a recent filing. The transaction, which took place on May 6, 2024, involved the sale of 9,244 shares at a weighted average price of $12.15 per share, resulting in a total value of $112,314.
Investors tracking insider transactions at Netgear will note that this sale has adjusted Werdann's direct ownership in the company, leaving him with 79,668 shares following the transaction. Details provided in the filing indicate that the sale was executed under a pre-arranged trading plan, known as a Rule 10b5-1 plan, which Werdann had adopted on September 8, 2023.
The filing did not disclose individual sale prices for each share, but it did mention that full information regarding the number of shares sold at each separate price would be provided upon request by the Commission staff, the Issuer, or security holders of the Issuer.
In addition to the sale of common stock, the filing also included information on various employee stock options held by Werdann. These options, with exercise prices ranging from $18.58 to $41.67, are set to expire on various dates from 2025 to 2029. The options represent the right to buy shares of Netgear common stock at predetermined prices and are subject to vesting schedules as outlined in the footnotes of the filing.
The non-derivative transactions are of particular interest to investors as they directly impact the number of shares Werdann holds in Netgear. After the reported sale, Werdann's remaining equity in the company continues to align his interests with those of shareholders, though to a lesser extent than before the sale.
Netgear, a global networking company that delivers innovative products to consumers, businesses, and service providers, has its securities listed under the ticker symbol NTGR on the NASDAQ exchange. The company's stock performance and insider transactions, such as those by Werdann, are closely watched by investors seeking insights into the confidence that Netgear's executives have in the company's future prospects.
InvestingPro Insights
As Netgear Inc. (NASDAQ:NTGR) navigates through the current market, recent data from InvestingPro provides a snapshot of the company's financial health and stock performance. The company's market capitalization stands at $341.88 million, reflecting its current valuation in the market. Despite a challenging period, Netgear's management has shown confidence in the company's future, as evidenced by aggressive share buybacks, an InvestingPro Tip that suggests a bullish stance by the company's leadership.
Another positive indicator for potential investors is Netgear's balance sheet strength. The company holds more cash than debt, which is a reassuring sign of financial stability. This is complemented by the fact that Netgear's liquid assets exceed its short-term obligations, providing a cushion against market volatility.
However, it's not all smooth sailing for Netgear. The company's revenue has seen a decline of 19.75% over the last twelve months as of Q1 2024, which may raise concerns about its growth trajectory. Additionally, analysts anticipate a sales decline in the current year, and they do not expect the company to be profitable this year, as per InvestingPro Tips. This is further reflected in the company's negative P/E ratio of -3.01, adjusted for the last twelve months as of Q1 2024.
Investors interested in a deeper dive into Netgear's performance and prospects can find a wealth of additional insights on InvestingPro. There are 11 more InvestingPro Tips available, which can provide further context to Netgear's financials and stock movements. For those looking to leverage these insights, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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