Even though NetScout Systems, Inc. (NASDAQ:NTCT) stock gained 9.2% last week, insiders who sold US$853k worth of stock over the past year are probably better off. Selling at an average price of US$34.13, which is higher than the current price, may have been the best move for these insiders because their investment would have been worth less now than when they sold.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for NetScout Systems

The Last 12 Months Of Insider Transactions At NetScout Systems

Over the last year, we can see that the biggest insider sale was by the Lead Independent Director, John Egan, for US$853k worth of shares, at about US$34.13 per share. So what is clear is that an insider saw fit to sell at around the current price of US$33.60. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern. The only individual insider seller over the last year was John Egan.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like NetScout Systems better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. NetScout Systems insiders own 5.2% of the company, currently worth about US$124m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About NetScout Systems Insiders?

The fact that there have been no NetScout Systems insider transactions recently certainly doesn't bother us. While we feel good about high insider ownership of NetScout Systems, we can't say the same about the selling of shares. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for NetScout Systems.

Of course NetScout Systems may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.