Technical Analysis: After Forming Bullish Multiple Top Pattern, Is NetScout Systems, Inc.’s Near-Term Analysis Positive?

Technical Analysis: After Forming Bullish Multiple Top Pattern, Is NetScout Systems, Inc.'s Near Term Analysis Positive?

The stock of NetScout Systems, Inc. (NTCT) shows a multiple tops pattern with $34.24 target or 7.00% above today’s $32.00 share price. The 9 months chart pattern indicates low risk for the $2.99 billion company. It was reported on Jan, 11 by Finviz.com. If the $34.24 price target is reached, the company will be worth $209.30M more.
Multiple tops are chart patterns with decent performance in a bull market. The failure rate is higher but the average decline is reasonable. Back-tests of such patterns show that the break even failure rate is 10%, the average rise: 19%, the throwback rate: 61% and the percentage of stocks meeting their price targets: 40%. The stock last traded at $32 per share. It is down 28.88% since June 7, 2016 and is uptrending. It has outperformed by 21.45% the S&P500.

Analysts await NetScout Systems, Inc. (NASDAQ:NTCT) to report earnings on January, 26. They expect $0.45 earnings per share, down 10.00% or $0.05 from last year’s $0.5 per share. NTCT’s profit will be $42.05 million for 17.78 P/E if the $0.45 EPS becomes a reality. After $0.31 actual earnings per share reported by NetScout Systems, Inc. for the previous quarter, Wall Street now forecasts 45.16% EPS growth.

NetScout Systems, Inc. (NASDAQ:NTCT) Ratings Coverage

Out of 5 analysts covering NetScout Systems (NASDAQ:NTCT), 2 rate it a “Buy”, 0 “Sell”, while 3 “Hold”. This means 40% are positive. $48 is the highest target while $24 is the lowest. The $28 average target is -12.50% below today’s ($32) stock price. NetScout Systems has been the topic of 10 analyst reports since July 31, 2015 according to StockzIntelligence Inc. The firm earned “Hold” rating on Friday, January 29 by Needham. The firm earned “Sector Weight” rating on Monday, January 9 by Pacific Crest. As per Tuesday, April 12, the company rating was reinitiated by RBC Capital Markets. As per Friday, July 31, the company rating was upgraded by Sterne Agee CRT. On Thursday, July 30 the stock rating was upgraded by Craig Hallum to “Buy”. RBC Capital Markets initiated the shares of NTCT in a report on Thursday, August 13 with “Outperform” rating. The stock of NetScout Systems, Inc. (NASDAQ:NTCT) has “Outperform” rating given on Tuesday, January 19 by RBC Capital Markets.

According to Zacks Investment Research, “NetScout Systems designs, develops, manufactures, markets and supports a family of integrated products that enable optimization of the performance and cost management of complex, high-speed networks, including their ability to deliver critical business applications and content to end-users efficiently. They manufacture and market these products in an integrated hardware and software solution suite that is used by enterprise and service provider businesses worldwide.”

Insitutional Activity: The institutional sentiment decreased to 0.81 in 2016 Q3. Its down 0.27, from 1.08 in 2016Q2. The ratio dropped, as 24 funds sold all NetScout Systems, Inc. shares owned while 77 reduced positions. 27 funds bought stakes while 55 increased positions. They now own 98.87 million shares or 1.37% more from 97.54 million shares in 2016Q2.
Commonwealth Of Pennsylvania School Empls Retrmt owns 13,607 shares or 0.01% of their US portfolio. Victory Cap Mngmt holds 0.06% or 728,815 shares in its portfolio. Fmr Lc accumulated 270,617 shares or 0% of the stock. Arizona State Retirement System holds 0.02% of its portfolio in NetScout Systems, Inc. (NASDAQ:NTCT) for 35,896 shares. Putnam Investments Lc, a Massachusetts-based fund reported 80,236 shares. Moreover, Freshford Capital Management Ltd Llc has 4.16% invested in NetScout Systems, Inc. (NASDAQ:NTCT) for 451,199 shares. Sg Americas Ltd Llc has 0.01% invested in the company for 17,164 shares. Employees Retirement Association Of Colorado last reported 0.07% of its portfolio in the stock. Vanguard accumulated 0.01% or 6.70M shares. Aperio Gru Ltd Liability Corp reported 53,693 shares or 0.01% of all its holdings. The New York-based Epoch Invest Partners Inc has invested 0.18% in NetScout Systems, Inc. (NASDAQ:NTCT). Assetmark last reported 0% of its portfolio in the stock. Mycio Wealth Limited has 499 shares for 0% of their US portfolio. Parallax Volatility Advisers Limited Partnership has invested 0% of its portfolio in NetScout Systems, Inc. (NASDAQ:NTCT). Alliancebernstein Limited Partnership owns 143,406 shares or 0% of their US portfolio.

Insider Transactions: Since August 2, 2016, the stock had 0 insider purchases, and 4 selling transactions for $330,408 net activity. Shares for $137,235 were sold by SZABADOS MICHAEL on Tuesday, November 1. DOWNING JOHN sold $27,500 worth of stock.

NTCT Company Profile

NetScout Systems, Inc. (NetScout), incorporated on April 21, 1993, provides operational intelligence and performance analytics for service assurance and cyber security solutions. The Company’s solutions are used in various service provider, enterprise and government networks. The Company’s solutions, based on Adaptive Service Intelligence (ASI) technology, help clients monitor the service delivery environment to identify performance issues and to provide insight into network security threats. It makes and markets these products for integrated hardware and software solutions. The Company’s products help clients deploy its software in hardware and in virtualized form factors. The Company’s nGenius and Infinistream technologies, along with certain product lines from the acquired businesses, enable information technology (IT) organizations to manage service delivery quality, and identify and address business service performance issues and security threats. The Company’s solutions support a range of enterprise IT initiatives, which include IT operational excellence, data center modernization and cloud computing, unified communications (UC), new application service rollout, application and desktop virtualization, and cybersecurity. The Company’s manufacturing activities consist of final product assembly, configuration and testing.

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