Joseph G. Hadzima Jr., a director at NetScout Systems Inc. (NASDAQ:NTCT), reported selling 7,000 shares of the company's common stock on November 1, according to a recent SEC filing. The shares were sold at a weighted average price of $20.7573, ranging from $20.50 to $21.17 per share, amounting to a total transaction value of approximately $145,301. This sale was conducted under a 10b5-1 trading plan adopted by Hadzima on November 30, 2023. Following the transaction, Hadzima holds 131,298 shares directly.
In other recent news, NetScout Systems, Inc. announced its Q2 FY2025 results, revealing a decrease in earnings per share (EPS) to $0.47 from $0.61 in the same period last year. The company's Q2 revenue also fell to $191 million, marking a 3% year-over-year drop. Despite this, NetScout reaffirmed its full-year non-GAAP revenue and EPS outlook.
The company attributed the decline in Q2 revenue to backlog-related revenue and the divestiture of a test optimization business. However, NetScout's cybersecurity segment showed promising growth, with a 3% increase in revenue.
In terms of future expectations, the company anticipates a non-GAAP revenue of $800 million to $830 million for FY 2025, with an expected non-GAAP diluted EPS between $2.10 and $2.30. NetScout's CEO, Anil Singhal, highlighted the introduction of the Omnis Cyber Intelligence solution in the DDoS space and the potential of network slicing to create new revenue opportunities.
These developments underline NetScout's strategic focus on cybersecurity, cost management, and innovative technology solutions for complex digital environments.
InvestingPro Insights
While Joseph G. Hadzima Jr.'s recent sale of NetScout Systems Inc. (NASDAQ:NTCT) shares may raise eyebrows, it's crucial to consider the broader financial picture of the company. According to InvestingPro data, NetScout's market capitalization stands at $1.5 billion, with a price-to-book ratio of 1.03 as of the last twelve months ending Q2 2025, suggesting the stock may be reasonably valued relative to its book value.
An InvestingPro Tip highlights that management has been aggressively buying back shares, which could indicate confidence in the company's future prospects and potentially offset the impact of insider sales. Additionally, NetScout boasts impressive gross profit margins, with the latest data showing a robust 77.08% for the last twelve months ending Q2 2025.
Despite these positive indicators, investors should note that NetScout has not been profitable over the last twelve months, as pointed out by another InvestingPro Tip. However, analysts predict the company will return to profitability this year, which could be a catalyst for future stock performance.
For those seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for NetScout Systems, providing a deeper understanding of the company's financial health and market position.
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