Market Takeaway: NetScout Systems (NTCT), EnerNOC (ENOC), Hercules Offshore (HERO)

NetScout Systems, Inc. (NASDAQ:NTCT) has agreed to merge with the communications arm of Danaher Corporation (NYSE:DHR) through a deal that would see $2.6 billion changing hands. NTCT said it would pay the acquisition amount in stock, and the move is expected to bolster its global position in the provision of cybersecurity solutions.

The executive team of NetScout Systems, Inc. (NASDAQ:NTCT) is expected to remain in position after the closing of the merger deal, which is expected to complete in early 2015. The units of DHR that NTCT has agreed to acquire generated revenue of $836 million in the last fiscal year. That compared with $397 million that NetScout Systems, Inc. (NASDAQ:NTCT) itself generated in its latest fiscal year.

Shareholders of DHR will receive 60% of the outstanding shares of NetScout Systems as part of the deal. DHR is focusing its attention on other lucrative business segments, which makes it necessary to separate the communications businesses.

Shares of NTCT have edged up more than 32% in the last 12 months.

There have been two insiders selling at EnerNOC, Inc. (NASDAQ:ENOC) that are worth noting. The company’s SVP, Gregg Dixon, was the latest to sell 10,000 shares of the company on the open market. He sold each share at an average price of $16.90 and generated $169,000 in proceeds. The transaction left Dixon with 335,882 more shares in ENOC, according to the SEC filing.

In another insider selling, David B. Brewster, the president of the company, sold 10,000 shares at an average price of $19.47. The transaction fetched $194,700 in proceeds and left the president with 1,062,368 more shares in the company.

The insider selling happened at a time when shares of EnerNOC plunged more than 23% so far this year.

Hercules Offshore, Inc. (NASDAQ:HERO) is receiving mixed analyst recommendations and investors are good to know how things have changed for the stock so far. Currently, Wall Street has a consensus “hold” rating on the stock and average target price of $5.46 on it. Shares of HERO recently plunged to a new 52-week low of $1.47 and the stock is down more than 77% this year.

It appears as though analysts can’t see enough evidence to support positive performance expectation in the company. Perhaps that explains why analysts at Cowen cut their target price on the stock to $4 from $6, but restated an “outperform” rating on it. Analysts at Goldman Sachs Group Inc (NYSE:GS) also weighed in on the stock of Hercules Offshore (HERO). They set a ‘sell” rating on it and cut their target price to $3 from $3.40.

About the Author

Stinson is US Markets Daily’s Senior Producer for News & Public Affairs.

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