NetScout Systems (NASDAQ:NTCT) Stock Breaks Below 200 Day Moving Average - Here's What Happened

Key Points

• NetScout shares fell below their 200-day moving average of $36.47, reaching an intraday low of $30.75 before last trading at $31.83.
• The company beat quarterly estimates, reporting EPS of $0.71 versus $0.66 expected and revenue of $222.19 million versus $218.77 million expected; revenue rose 1.4% year over year.
• Analysts’ consensus rating is Hold, with an average price target of $46.50. Recent ratings were mixed, including a $50 Buy target from B. Riley and a $43 Sector Perform target from RBC.

NetScout Systems, Inc. (NASDAQ:NTCT - Get Free Report) shares passed below its two hundred day moving average during trading on Thursday. The stock has a two hundred day moving average of $36.47 and traded as low as $30.75. NetScout Systems shares last traded at $31.83, with a volume of 1,090,510 shares trading hands.

Wall Street Analysts Forecast Growth

Several brokerages recently weighed in on NTCT. Royal Bank Of Canada upped their target price on shares of NetScout Systems from $38.00 to $43.00 and gave the stock a "sector perform" rating in a report on Thursday, August 6th. Weiss Ratings raised NetScout Systems from a "hold (c)" rating to a "hold (c+)" rating in a report on Thursday, October 8th. B. Riley Financial reissued a "buy" rating and set a $50.00 price target on shares of NetScout Systems in a report on Sunday, August 9th. after the company reported F1Q27 results. Wall Street Zen upgraded NetScout Systems from a "buy" rating to a "strong-buy" rating in a research report on Saturday, August 8th. Finally, Zacks Research lowered NetScout Systems from a "strong-buy" rating to a "hold" rating in a research note on Thursday, October 8th. One investment analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of "Hold" and a consensus target price of $46.50.

NetScout Systems Stock Performance

The firm has a market capitalization of $2.31 billion, a PE ratio of 19.41 and a beta of 0.72. The business's fifty day simple moving average is $38.82 and its 200-day simple moving average is $36.47.

NetScout Systems (NASDAQ:NTCT - Get Free Report) last released its earnings results on Thursday, November 5th. The technology company reported $0.71 EPS for the quarter, topping the consensus estimate of $0.66 by $0.05. NetScout Systems had a net margin of 13.71% and a return on equity of 9.25%. The firm had revenue of $222.19 million for the quarter, compared to the consensus estimate of $218.77 million. During the same quarter in the previous year, the firm earned $0.62 earnings per share. The company's quarterly revenue was up 1.4% compared to the same quarter last year. NetScout Systems has set its FY 2027 guidance at 2.650-2.800 EPS. Sell-side analysts expect that NetScout Systems, Inc. will post 2.15 earnings per share for the current fiscal year.

Insider Transactions at NetScout Systems

In other news, Director Michael Szabados sold 4,000 shares of NetScout Systems stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $37.70, for a total value of $150,800.00. Following the sale, the director directly owned 41,654 shares of the company's stock, valued at approximately $1,570,355.80. The trade was a 8.76% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, COO Sanjay Munshi sold 2,269 shares of the business's stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $39.27, for a total value of $89,103.63. Following the completion of the sale, the chief operating officer owned 6,729 shares in the company, valued at $264,247.83. This represents a 25.22% 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. 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 company insiders.

Institutional Trading of NetScout Systems

Several hedge funds have recently modified their holdings of the company. Bank of America Corp DE purchased a new position in NetScout Systems during the second quarter worth $7,095,000. Compass Financial Management LLC purchased a new stake in shares of NetScout Systems in the second quarter valued at $2,347,000. Corient Private Wealth LP purchased a new stake in shares of NetScout Systems in the second quarter valued at $1,120,000. BlackRock Inc. bought a new stake in shares of NetScout Systems in the 2nd quarter worth about $498,027,000. Finally, Assenagon Asset Management S.A. bought a new stake in shares of NetScout Systems in the 3rd quarter worth about $1,057,000. 91.64% of the stock is owned by hedge funds and other institutional investors.

NetScout Systems Company Profile

NetScout Systems, Inc NASDAQ: NTCT provides network performance management, service assurance and cybersecurity solutions for enterprises, communications service providers, government organizations and other large institutions. Its technologies are designed to help customers monitor network traffic, identify performance issues, maintain service availability and detect or respond to cyberthreats.

The company's offerings include the nGeniusONE service assurance platform, InfiniStream network monitoring and packet-based visibility technologies, and solutions associated with its Arbor portfolio for distributed denial-of-service protection, network detection and response, and other cybersecurity applications.

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