BTIG Research Issues Pessimistic Forecast for Netskope (NASDAQ:NTSK) Stock Price

Key Points

• BTIG Research cut its price target on Netskope to $22 (from $27) but maintained a "buy" rating, implying roughly 103.7% upside from the stock's current ~ $10.80 level.
• Netskope's latest quarter beat expectations—revenue $184.17M (up 33% YoY) and EPS -$0.10 vs. -$0.25 expected—but the company remains unprofitable with a negative P/E.
• There has been significant insider selling recently (CEO sold 346,061 shares; insiders sold >1,049,721 shares worth about $18M in the last 90 days) while large institutions such as ICONIQ and Vanguard have also built sizable positions.

Netskope (NASDAQ:NTSK - Get Free Report) had its target price dropped by analysts at BTIG Research from $27.00 to $22.00 in a research report issued to clients and investors on Monday,Benzinga reports. The brokerage currently has a "buy" rating on the stock. BTIG Research's price target suggests a potential upside of 103.70% from the company's current price.

A number of other brokerages have also commented on NTSK. FBN Securities initiated coverage on shares of Netskope in a research report on Wednesday, February 25th. They set an "outperform" rating and a $15.00 price objective for the company. Piper Sandler reaffirmed an "overweight" rating on shares of Netskope in a report on Friday, December 12th. Royal Bank Of Canada reiterated an "outperform" rating on shares of Netskope in a research report on Wednesday, February 11th. KeyCorp lowered their price objective on Netskope from $24.00 to $17.00 and set an "overweight" rating on the stock in a research report on Tuesday, February 17th. Finally, Mizuho cut their target price on Netskope from $26.00 to $20.00 and set an "outperform" rating for the company in a research note on Tuesday, February 17th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $24.65.

Netskope Stock Down 6.3%

Shares of NTSK stock opened at $10.80 on Monday. Netskope has a 12 month low of $9.13 and a 12 month high of $27.99. The company has a current ratio of 2.32, a quick ratio of 2.32 and a debt-to-equity ratio of 5.17. The firm has a market capitalization of $4.25 billion and a price-to-earnings ratio of -108.00. The stock's 50 day simple moving average is $14.63.

Netskope (NASDAQ:NTSK - Get Free Report) last announced its earnings results on Thursday, December 11th. The company reported ($0.10) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.25) by $0.15. The company had revenue of $184.17 million for the quarter, compared to the consensus estimate of $175.81 million. The firm's quarterly revenue was up 33.0% compared to the same quarter last year.

Insider Activity

In other Netskope news, CRO Raphael Bousquet sold 3,823 shares of Netskope stock in a transaction on Monday, January 12th. The stock was sold at an average price of $16.66, for a total value of $63,691.18. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Sanjay Beri sold 346,061 shares of the business's stock in a transaction on Friday, January 2nd. The stock was sold at an average price of $16.91, for a total value of $5,851,891.51. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 1,049,721 shares of company stock worth $18,020,279.

Institutional Trading of Netskope

Hedge funds and other institutional investors have recently made changes to their positions in the business. ICONIQ Capital LLC acquired a new stake in Netskope in the 3rd quarter valued at about $1,506,261,000. Scge Management L.P. bought a new stake in shares of Netskope during the third quarter valued at approximately $312,104,000. Vanguard Group Inc. grew its stake in shares of Netskope by 51.5% during the fourth quarter. Vanguard Group Inc. now owns 5,332,708 shares of the company's stock valued at $93,536,000 after purchasing an additional 1,812,857 shares during the last quarter. Massachusetts Financial Services Co. MA increased its holdings in shares of Netskope by 11.7% in the fourth quarter. Massachusetts Financial Services Co. MA now owns 3,561,508 shares of the company's stock valued at $62,469,000 after purchasing an additional 373,529 shares in the last quarter. Finally, T. Rowe Price Investment Management Inc. raised its position in Netskope by 14.7% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 3,556,583 shares of the company's stock worth $62,383,000 after purchasing an additional 456,321 shares during the last quarter.

Netskope Company Profile

We are redefining security and networking for the era of cloud and AI. The cloud and AI have completely revolutionized work. We are more dispersed, more productive, and more automated than ever before, and the rate of change is only accelerating. Not since the internet has there been such a transformative tectonic shift. But, with it has come collateral damage-traditional security and networking are now broken. We founded Netskope to address this revolution. We built Netskope One, our unified, cloud-native platform from the ground up to solve the challenge of securing and accelerating the digital interactions of enterprises in this new era.

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