Netscout Systems (NTCT) Shares Soar 2.21% Amid Insider Selling

Netscout Systems (NTCT) shares surged 2.21% today, reaching their highest level since February 2025 with an intraday gain of 2.52%.

The strategy of buying NTCT shares after they reach a recent high and holding for one week resulted in poor performance over the past five years. The strategy yielded a return of -32.13%, significantly underperforming the benchmark return of 44.90%. The excess return was -77.03%, and the CAGR was -15.18%, indicating substantial losses. The strategy also had a high maximum drawdown of -49.54% and a Sharpe ratio of -0.43, reflecting significant risk and negative returns.

On May 13, 2025, Michael Szabados, the Chief Operating Officer of NetScout Systems Inc, sold 7500 shares of the company. This transaction could potentially influence investor sentiment and the stock price, as insider selling often raises concerns about the company's future prospects.

Additionally, NetScout Systems Inc is navigating a challenging fiscal year, marked by a substantial net loss and goodwill impairment. Despite a decline in revenue, the company's financial struggles may weigh on its stock performance, as investors reassess the company's long-term viability and growth potential.