NetScout Systems (NASDAQ:NTCT) Shares Cross Below 200 Day Moving Average – What’s Next?

NetScout Systems, Inc. (NASDAQ:NTCT) shares passed below its 200-day moving average during trading on Thursday. The stock has a 200-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.

Trending Headlines about NetScout Systems

Here are the key news stories impacting NetScout Systems this week:

• Positive Sentiment: Fiscal Q2 2027 adjusted EPS was $0.71, beating the $0.66 consensus and rising from $0.62 a year earlier. Revenue of $222.19 million also topped estimates of $218.77 million. Zacks earnings report
• Neutral Sentiment: NetScout maintained fiscal 2027 EPS guidance of $2.65–$2.80, above the $2.62 consensus. Revenue guidance of $885 million–$915 million brackets analysts’ $904.9 million estimate, while its midpoint is slightly below that forecast.
• Negative Sentiment: RBC cut its price target to $35 from $43 and kept a “sector perform” rating. The new target still implies about 11.1% upside from the cited $31.51 share price, but the sizable reduction may weigh on sentiment. RBC ratings information
• Negative Sentiment: Despite the quarterly beats, revenue increased just 1.4% year over year, suggesting modest growth and potentially limiting enthusiasm about the results.

Analyst Upgrades and Downgrades

NTCT has been the topic of several recent analyst reports. Weiss Ratings upgraded shares of 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 issued a $50.00 price target on shares of NetScout Systems in a report on Sunday, August 9th. after the company reported F1Q27 results. Royal Bank Of Canada cut their target price on NetScout Systems from $43.00 to $35.00 and set a “sector perform” rating for the company in a research report on Friday. Zacks Research lowered shares of NetScout Systems from a “strong-buy” rating to a “hold” rating in a research report on Thursday, October 8th. Finally, Wall Street Zen lowered shares of NetScout Systems from a “strong-buy” rating to a “hold” rating in a report on Saturday. 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 presently has an average rating of “Hold” and a consensus target price of $42.50.

NetScout Systems Stock Performance

The firm has a market cap of $2.29 billion, a P/E ratio of 17.90 and a beta of 0.72. The firm’s fifty day moving average is $38.66 and its 200 day moving average is $36.49.

NetScout Systems (NASDAQ:NTCT) last released its quarterly earnings results on Thursday, November 5th. The technology company reported $0.71 EPS for the quarter, beating the consensus estimate of $0.66 by $0.05. The business had revenue of $222.19 million for the quarter, compared to the consensus estimate of $218.77 million. NetScout Systems had a net margin of 13.71% and a return on equity of 9.25%. NetScout Systems’s revenue was up 1.4% compared to the same quarter last year. During the same period in the prior year, the company posted $0.62 earnings per share. NetScout Systems has set its FY 2027 guidance at 2.650-2.800 EPS. As a group, equities research analysts forecast that NetScout Systems, Inc. will post 2.15 EPS for the current year.

Insider Transactions at NetScout Systems

In other NetScout Systems news, EVP John Downing sold 8,000 shares of the stock in a transaction that occurred on Tuesday, August 11th. The shares were sold at an average price of $38.41, for a total transaction of $307,280.00. Following the completion of the sale, the executive vice president owned 127,809 shares of the company’s stock, valued at approximately $4,909,143.69. This represents a 5.89% decrease in their position. The transaction was disclosed in a document filed with the SEC, 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 NetScout Systems 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 directly owned 41,654 shares of the company’s stock, valued at $1,570,355.80. This represents a 8.76% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 21,269 shares of company stock worth $813,184. 4.74% of the stock is owned by corporate insiders.

Institutional Trading of NetScout Systems

Several large investors have recently modified their holdings of NTCT. BlackRock Inc. bought a new stake in NetScout Systems in the 2nd quarter valued at about $498,027,000. Legal & General Group Plc purchased a new stake in NetScout Systems during the 2nd quarter valued at $165,970,000. Bank of New York Mellon Corp purchased a new stake in NetScout Systems in the 2nd quarter worth approximately $19,702,000. SEB Asset Management AB purchased a new position in shares of NetScout Systems during the first quarter valued at approximately $14,137,000. Finally, Empowered Funds LLC bought a new position in shares of NetScout Systems during the second quarter valued at approximately $14,811,000. Institutional investors and hedge funds own 91.64% of the company’s stock.

About NetScout Systems

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.