NetScout Systems (NASDAQ:NTCT) Shares Break Above 200-Day Moving Average - Here's What Happened

Key Points

• NetScout Systems shares broke above their 200-day moving average, reaching $41.19 before closing at $40.07, compared with the 200-day average of $38.42.
• The company exceeded quarterly expectations, reporting $0.52 in EPS versus a $0.38 consensus estimate and $210.42 million in revenue, up 12.7% year over year. Analysts have a “Moderate Buy” consensus rating, though their average price target of $38.00 is below the recent trading price.
• Institutional investors own a substantial 91.64% of the stock, while company insiders have sold 21,269 shares worth approximately $813,184 over the past three months.

NetScout Systems, Inc. (NASDAQ:NTCT - Get Free Report)'s stock price crossed above its 200-day moving average during trading on Wednesday. The stock has a 200-day moving average of $38.42 and traded as high as $41.19. NetScout Systems shares last traded at $40.07, with a volume of 734,938 shares trading hands.

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on NTCT shares. Weiss Ratings cut shares of NetScout Systems from a "hold (c+)" rating to a "hold (c)" rating in a research note on Thursday, August 27th. Wall Street Zen raised shares of NetScout Systems from a "buy" rating to a "strong-buy" rating in a research note on Saturday, August 8th. Finally, Zacks Research upgraded shares of NetScout Systems from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, August 19th. One analyst has rated the stock with a Strong Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat.com, NetScout Systems presently has an average rating of "Moderate Buy" and a consensus price target of $38.00.

NetScout Systems Stock Down 2.2%

The stock has a market cap of $2.91 billion, a P/E ratio of 24.43 and a beta of 0.69. The business has a 50 day moving average price of $39.03 and a two-hundred day moving average price of $38.42.

NetScout Systems (NASDAQ:NTCT - Get Free Report) last issued its earnings results on Thursday, August 6th. The technology company reported $0.52 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.38 by $0.14. NetScout Systems had a return on equity of 9.25% and a net margin of 13.71%.The company had revenue of $210.42 million for the quarter, compared to the consensus estimate of $196.17 million. During the same quarter last year, the company earned $0.34 EPS. The firm's quarterly revenue 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, Inc. will post 2.15 earnings per share for the current year.

Insider Activity at NetScout Systems

In other news, EVP John Downing sold 8,000 shares of the business's stock in a transaction on Tuesday, August 11th. The shares were sold at an average price of $38.41, for a total value of $307,280.00. Following the transaction, the executive vice president owned 127,809 shares of the company's stock, valued at approximately $4,909,143.69. The trade was a 5.89% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Michael Szabados sold 4,000 shares of the company's stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $37.70, for a total transaction of $150,800.00. Following the transaction, the director owned 41,654 shares of the company's stock, valued at approximately $1,570,355.80. This represents a 8.76% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 21,269 shares of company stock worth $813,184. 4.74% of the stock is currently owned by corporate insiders.

Institutional Trading of NetScout Systems

Several hedge funds have recently bought and sold shares of NTCT. Group One Trading LLC purchased a new position in shares of NetScout Systems during the second quarter valued at about $47,000. Nykredit A S purchased a new position in NetScout Systems during the 2nd quarter valued at approximately $50,000. Ameritas Advisory Services LLC bought a new stake in NetScout Systems in the 2nd quarter worth approximately $53,000. Public Employees Retirement System of Ohio bought a new stake in NetScout Systems in the 2nd quarter worth approximately $68,000. Finally, Northwestern Mutual Wealth Management Co. bought a new position in shares of NetScout Systems during the 2nd quarter valued at approximately $95,000. Hedge funds and other institutional investors own 91.64% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.