Form 4: NETSCOUT Systems COO Michael Szabados Increases Direct Stock Ownership Through RSU Vesting

NETSCOUT Systems, Inc. Chief Operating Officer and Director Michael Szabados acquired 6,300 shares of common stock through the vesting of restricted stock units, increasing his direct beneficial ownership to 42,939 shares after tax withholding.

Summary

• Michael Szabados, Chief Operating Officer and Director of NETSCOUT SYSTEMS INC (NTCT), reported changes in his beneficial ownership of company stock.
• On June 15, 2025, Mr. Szabados acquired 6,300 shares of Common Stock upon the vesting of previously granted restricted stock units (RSUs).
• Following this acquisition, his direct beneficial ownership of Common Stock initially increased to 44,795 shares.
• Concurrently, 1,856 shares of Common Stock were disposed of to satisfy tax withholding obligations related to the RSU vesting.
• The shares withheld for tax purposes were valued at $23.25 per share, which was the closing price of the Company's Common Stock on June 13, 2025.
• After the tax withholding, Mr. Szabados's direct beneficial ownership of Common Stock stands at 42,939 shares.
• Additionally, 6,300 Restricted Stock Units were converted into Common Stock, and Mr. Szabados beneficially owns 47,250 derivative securities (RSUs) following this transaction.

Sentiment

Score: 7

Explanation: The sentiment is positive for the executive as it represents the realization of compensation, and neutral for the company's operational performance as it's a routine compensation event. It reflects continued alignment of executive interests with shareholders.

Positives

• The vesting of 6,300 restricted stock units represents a conversion of executive compensation into direct equity ownership, aligning the executive's interests with shareholders.
• The increase in direct beneficial ownership of Common Stock by a key executive (Chief Operating Officer and Director) demonstrates continued commitment to the company.

Negatives

• 1,856 shares were withheld to cover tax obligations, which is a standard procedure for RSU vesting but reduces the net shares received by the executive.

Future Outlook

This Form 4 filing does not contain any forward-looking statements or guidance regarding the company's future performance or outlook.

Industry Context

This Form 4 filing is a routine disclosure of an insider's change in beneficial ownership, common across all publicly traded companies. It does not provide specific insights into broader industry trends or competitive landscape, but rather reflects an individual executive's compensation and equity holdings.

Related Party Transactions

• The transaction involves an insider (Chief Operating Officer and Director Michael Szabados) acquiring shares from the company through a compensation plan (RSU vesting), which is a common form of related party transaction in public companies.

Stakeholder Impact

• Shareholders: The vesting of RSUs results in a minor increase in the outstanding share count, which is a standard part of equity compensation plans and generally anticipated.
• Employees (specifically Michael Szabados): The transaction represents the realization of compensation, increasing his direct equity stake in the company.

Key Dates

Keywords

NETSCOUT SYSTEMS, NTCT, Form 4, insider transaction, restricted stock units, RSU vesting, executive compensation, stock ownership, Michael Szabados, corporate governance