Netskope Inc. (NASDAQ:NTSK) Sees Large Growth in Short Interest

Key Points

• Short interest surged in Netskope during May, rising 67.1% to 11.63 million shares by May 15. That amounts to about 2.9% of the float and a 3.2-day days-to-cover ratio.
• The company beat quarterly earnings expectations, posting EPS of -$0.06 versus the -$0.07 consensus on revenue of $201.59 million. Netskope also provided revenue guidance that came in above analyst estimates.
• Despite positive operating updates, analyst sentiment is mixed, with several firms trimming price targets while the overall consensus remains a Moderate Buy. The stock traded at $12.40, well below its 52-week high of $27.99.

Netskope Inc. (NASDAQ:NTSK - Get Free Report) was the recipient of a significant increase in short interest during the month of May. As of May 15th, there was short interest totaling 11,628,306 shares, an increase of 67.1% from the April 30th total of 6,957,285 shares. Approximately 2.9% of the shares of the stock are short sold. Based on an average daily trading volume, of 3,625,899 shares, the days-to-cover ratio is presently 3.2 days.

Hedge Funds Weigh In On Netskope

Hedge funds have recently made changes to their positions in the business. Farther Finance Advisors LLC acquired a new stake in shares of Netskope during the 4th quarter worth about $25,000. Quarry LP acquired a new stake in shares of Netskope during the 3rd quarter worth about $41,000. Triumph Capital Management increased its position in shares of Netskope by 380.0% during the 4th quarter. Triumph Capital Management now owns 2,400 shares of the company's stock worth $42,000 after purchasing an additional 1,900 shares in the last quarter. Wells Fargo & Company MN increased its position in shares of Netskope by 261.7% during the 4th quarter. Wells Fargo & Company MN now owns 3,617 shares of the company's stock worth $63,000 after purchasing an additional 2,617 shares in the last quarter. Finally, Assetmark Inc. acquired a new stake in shares of Netskope during the 3rd quarter worth about $83,000.

Netskope Stock Performance

NASDAQ NTSK traded up $0.31 during midday trading on Wednesday, hitting $12.40. The company had a trading volume of 13,868,615 shares, compared to its average volume of 4,037,310. The company has a quick ratio of 2.12, a current ratio of 2.13 and a debt-to-equity ratio of 3.71. The stock has a market cap of $4.96 billion and a price-to-earnings ratio of -88.57. The firm has a fifty day simple moving average of $10.24 and a two-hundred day simple moving average of $13.49. Netskope has a fifty-two week low of $7.66 and a fifty-two week high of $27.99.

Netskope (NASDAQ:NTSK - Get Free Report) last announced its quarterly earnings data on Wednesday, June 3rd. The company reported ($0.06) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.07) by $0.01. The business had revenue of $201.59 million during the quarter. Netskope has set its Q2 2027 guidance at -0.070--0.060 EPS and its FY 2027 guidance at -0.180--0.180 EPS. Equities analysts forecast that Netskope will post -0.19 earnings per share for the current fiscal year.

Key Stories Impacting Netskope

Here are the key news stories impacting Netskope this week:

• Positive Sentiment: Netskope’s fiscal Q1 earnings beat estimates, with adjusted EPS of -$0.06 versus the -$0.07 consensus, on revenue of $201.59 million. Netskope: Fiscal Q1 Earnings Snapshot
• Positive Sentiment: The company’s FY2027 revenue guidance of $879 million to $883 million topped analyst expectations, and Q2 revenue guidance of $213 million to $215 million also came in slightly above consensus. Netskope Announces Strong Fiscal First Quarter 2027 Financial Results
• Positive Sentiment: Netskope said it joined Anthropic’s Project Glasswing, highlighting its role in AI security and vulnerability detection at scale. Netskope Joins Anthropic's Project Glasswing
• Positive Sentiment: The company unveiled AI Command Center, a new platform for AI discovery, risk intelligence, and autonomous response, which could support longer-term growth in the security software market. netskope-unveils-ai-command-center-delivering-comprehensive-ai-discovery-and-correlated-risk-intelligence-with-fully-coordinated-agentic-response
• Neutral Sentiment: Netskope’s earnings release framed the quarter as strong, but the company remains unprofitable, so investors will likely focus on whether growth and guidance can keep improving. Netskope Announces Strong Fiscal First Quarter 2027 Financial Results

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on NTSK shares. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Netskope in a report on Friday, March 27th. Morgan Stanley cut their price target on shares of Netskope from $27.00 to $18.00 and set an "overweight" rating on the stock in a report on Thursday, March 12th. JPMorgan Chase & Co. cut their price target on shares of Netskope from $23.00 to $19.00 and set an "overweight" rating on the stock in a report on Thursday, March 12th. Mizuho cut their price target on shares of Netskope from $20.00 to $16.00 and set an "outperform" rating on the stock in a report on Thursday, March 12th. Finally, BMO Capital Markets decreased their target price on shares of Netskope from $26.00 to $14.00 and set an "outperform" rating for the company in a research report on Thursday, March 12th. One investment analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $18.42.

About Netskope

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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