NetScout Systems (NASDAQ:NTCT) Stock Rating Lowered by Zacks Research

Key Points

• Zacks Research downgraded NetScout Systems from “strong buy” to “hold.” The broader analyst consensus is also “hold,” with an average price target of $38.00.
• NetScout reported quarterly adjusted earnings of $0.52 per share and revenue of $210.42 million, exceeding estimates of $0.38 and $196.17 million, respectively. Revenue increased 12.7% year over year.
• Insiders sold 21,269 shares worth approximately $813,184 during the last quarter, while institutional investors and hedge funds collectively own 91.64% of the company.

NetScout Systems (NASDAQ:NTCT - Get Free Report) was downgraded by research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a report issued on Thursday, Zacks reports.

Other analysts have also recently issued reports about the company. Wall Street Zen upgraded NetScout Systems from a "buy" rating to a "strong-buy" rating in a research note on Saturday, August 8th. Weiss Ratings raised NetScout Systems from a "hold (c)" rating to a "hold (c+)" rating in a research note on Thursday. Three analysts have rated the stock with a Hold rating. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $38.00.

NetScout Systems Stock Performance

Shares of NTCT stock opened at $40.69 on Thursday. The stock has a market capitalization of $2.96 billion, a P/E ratio of 24.81 and a beta of 0.69. The company has a 50 day moving average price of $39.01 and a 200 day moving average price of $38.50. NetScout Systems has a fifty-two week low of $25.20 and a fifty-two week high of $45.28.

NetScout Systems (NASDAQ:NTCT - Get Free Report) last announced its earnings results on Thursday, August 6th. The technology company reported $0.52 earnings per share for the quarter, topping the consensus estimate of $0.38 by $0.14. NetScout Systems had a net margin of 13.71% and a return on equity of 9.25%. The firm had revenue of $210.42 million for the quarter, compared to the consensus estimate of $196.17 million. During the same period in the prior year, the firm earned $0.34 EPS. The firm's revenue for the quarter was up 12.7% on a year-over-year basis. NetScout Systems has set its FY 2027 guidance at 2.650-2.800 EPS. On average, research analysts forecast that NetScout Systems will post 2.15 EPS for the current fiscal year.

Insider Activity

In other news, COO Sanjay Munshi sold 2,269 shares of the firm's stock in a transaction on Monday, August 17th. The shares were sold at an average price of $39.27, for a total value of $89,103.63. Following the sale, the chief operating officer directly owned 6,729 shares in the company, valued at approximately $264,247.83. This trade represents a 25.22% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Christopher Perretta sold 7,000 shares of NetScout Systems stock in a transaction on Friday, September 11th. The stock was sold at an average price of $38.00, for a total transaction of $266,000.00. Following the sale, the director directly owned 40,866 shares of the company's stock, valued at approximately $1,552,908. This trade represents a 14.62% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 21,269 shares of company stock worth $813,184. Insiders own 4.74% of the company's stock.

Institutional Trading of NetScout Systems

Hedge funds and other institutional investors have recently bought and sold shares of the business. GAMMA Investing LLC lifted its stake in NetScout Systems by 20.7% during the third quarter. GAMMA Investing LLC now owns 1,768 shares of the technology company's stock worth $71,000 after purchasing an additional 303 shares during the last quarter. Tidal Investments LLC increased its stake in NetScout Systems by 64.4% in the second quarter. Tidal Investments LLC now owns 38,940 shares of the technology company's stock valued at $1,696,000 after purchasing an additional 15,259 shares during the last quarter. NewEdge Advisors LLC purchased a new position in NetScout Systems in the second quarter valued at approximately $154,000. Nykredit A S acquired a new stake in NetScout Systems during the second quarter worth approximately $50,000. Finally, Corient Private Wealth LP raised its holdings in NetScout Systems by 17.0% during the second quarter. Corient Private Wealth LP now owns 25,712 shares of the technology company's stock worth $1,120,000 after purchasing an additional 3,744 shares in the last quarter. 91.64% of the stock is currently owned by institutional investors and hedge funds.

NetScout Systems Company Profile

NetScout Systems, Inc develops solutions that help organizations monitor, manage, and secure digital networks. Its offerings provide visibility into network traffic, application performance, user experience, and cybersecurity events across enterprise, cloud, data center, and telecommunications environments.

The company's portfolio includes the nGenius service assurance platform, packet-based monitoring and analysis tools, network traffic management products, and cybersecurity solutions designed to detect and mitigate distributed denial-of-service attacks and other network threats.

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