Zacks Research Downgrades NetScout Systems (NASDAQ:NTCT) to Hold

Key Points

• Zacks Research downgraded NetScout Systems from strong-buy to hold, adding to a mixed analyst picture that still leaves the stock with a consensus Moderate Buy rating and a $35.50 price target.
• NetScout recently reported better-than-expected quarterly results, posting EPS of $0.52 versus estimates of $0.46 and revenue of $203.03 million versus expectations of $198.64 million, though revenue was still down 1% year over year.
• Several company insiders sold shares in recent transactions, including EVP John Downing and Director Alfred Grasso, while institutional investors continue to hold the large majority of the stock.

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

Several other equities analysts have also recently commented on NTCT. Wall Street Zen raised shares of NetScout Systems from a "hold" rating to a "buy" rating in a research report on Sunday, May 17th. Weiss Ratings downgraded shares of NetScout Systems from a "hold (c+)" rating to a "hold (c)" rating in a report on Monday, May 4th. Finally, Royal Bank Of Canada increased their price objective on NetScout Systems from $29.00 to $38.00 and gave the stock a "sector perform" rating in a report on Friday, May 8th. One research analyst has rated the stock with a Strong Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat.com, NetScout Systems presently has a consensus rating of "Moderate Buy" and a consensus price target of $35.50.

NetScout Systems Price Performance

Shares of NetScout Systems stock opened at $43.68 on Thursday. The stock's 50 day simple moving average is $40.57 and its 200-day simple moving average is $33.52. NetScout Systems has a 1-year low of $20.39 and a 1-year high of $45.28. The stock has a market cap of $3.12 billion, a P/E ratio of 33.60 and a beta of 0.68.

NetScout Systems (NASDAQ:NTCT - Get Free Report) last posted its earnings results on Thursday, May 7th. The technology company reported $0.52 EPS for the quarter, topping analysts' consensus estimates of $0.46 by $0.06. The business had revenue of $203.03 million for the quarter, compared to analysts' expectations of $198.64 million. NetScout Systems had a net margin of 11.11% and a return on equity of 8.37%. The business's revenue for the quarter was down 1.0% compared to the same quarter last year. During the same period in the previous year, the company posted $0.52 earnings per share. NetScout Systems has set its FY 2027 guidance at 2.650-2.800 EPS. As a group, research analysts expect that NetScout Systems will post 2.06 EPS for the current fiscal year.

Insider Activity at NetScout Systems

In other news, EVP John Downing sold 8,000 shares of the firm's stock in a transaction on Monday, June 8th. The stock was sold at an average price of $40.29, for a total value of $322,320.00. Following the completion of the sale, the executive vice president owned 129,121 shares of the company's stock, valued at $5,202,285.09. This trade represents a 5.83% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Alfred Grasso sold 5,000 shares of NetScout Systems stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $40.67, for a total value of $203,350.00. Following the transaction, the director owned 35,000 shares in the company, valued at $1,423,450. This represents a 12.50% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 3.82% of the company's stock.

Hedge Funds Weigh In On NetScout Systems

Institutional investors and hedge funds have recently bought and sold shares of the business. IFP Advisors Inc lifted its position in shares of NetScout Systems by 147.2% in the fourth quarter. IFP Advisors Inc now owns 1,011 shares of the technology company's stock worth $27,000 after purchasing an additional 602 shares in the last quarter. Farther Finance Advisors LLC grew its position in NetScout Systems by 92.8% during the fourth quarter. Farther Finance Advisors LLC now owns 1,290 shares of the technology company's stock valued at $35,000 after purchasing an additional 621 shares in the last quarter. Advisory Services Network LLC purchased a new position in NetScout Systems during the third quarter valued at approximately $35,000. Global Retirement Partners LLC purchased a new position in NetScout Systems during the fourth quarter valued at approximately $39,000. Finally, EverSource Wealth Advisors LLC increased its stake in NetScout Systems by 1,936.4% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 2,016 shares of the technology company's stock valued at $50,000 after buying an additional 1,917 shares during the period. Hedge funds and other institutional investors own 91.64% of the company's stock.

About NetScout Systems

NetScout Systems, Inc is a leading provider of network performance management, service assurance and cybersecurity solutions. The company designs and delivers hardware and software platforms that capture and analyze real-time and historical packet data, enabling IT teams and service providers to monitor application performance, troubleshoot network issues and defend against distributed denial-of-service (DDoS) attacks. NetScout's flagship offerings include the nGeniusONE service assurance platform and the InfiniStream packet broker, which together provide end-to-end visibility across hybrid and multi-cloud environments.

Founded in 1984 and headquartered in Westford, Massachusetts, NetScout has built a reputation for scalable and resilient monitoring infrastructure.

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