Netskope (NASDAQ:NTSK) Hits New 52-Week Low Following Analyst Downgrade

Key Points

• New 52-week low: Netskope shares plunged after KeyCorp cut its price target from $24 to $17, with the stock trading as low as $11.06 and down roughly 7% on the day.
• Analyst picture is mixed — the consensus is a "Moderate Buy" with an average target of $25.94, but several firms have reduced targets or issued cautious notes despite other firms maintaining buy/outperform ratings.
• Significant insider selling: CEO Sanjay Beri sold 346,061 shares (~$5.85M) and insiders disposed of a total of 1,049,721 shares (~$18.0M) in the past 90 days, even as Netskope reported a revenue beat with 33% y/y growth but remains unprofitable (PE -110.6) and carries a high debt-to-equity ratio (5.17).

Netskope Inc. (NASDAQ:NTSK - Get Free Report) reached a new 52-week low on Tuesday after KeyCorp lowered their price target on the stock from $24.00 to $17.00. KeyCorp currently has an overweight rating on the stock. Netskope traded as low as $11.06 and last traded at $11.12, with a volume of 224371 shares. The stock had previously closed at $11.89.

Several other equities research analysts have also weighed in on NTSK. Royal Bank Of Canada reiterated an "outperform" rating on shares of Netskope in a research note on Wednesday, February 11th. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and set a $26.00 target price on shares of Netskope in a report on Friday, December 12th. Robert W. Baird began coverage on shares of Netskope in a research report on Monday, October 27th. They issued an "outperform" rating and a $27.00 price target on the stock. Weiss Ratings reissued a "sell (d-)" rating on shares of Netskope in a research report on Monday, December 29th. Finally, Mizuho decreased their price objective on Netskope from $26.00 to $20.00 and set an "outperform" rating for the company in a research report on Tuesday. 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 issued a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $25.94.

Insider Buying and Selling

In related news, CRO Raphael Bousquet sold 3,823 shares of Netskope stock in a transaction dated 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 document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Sanjay Beri sold 346,061 shares of the stock in a transaction on Friday, January 2nd. The shares were sold at an average price of $16.91, for a total value of $5,851,891.51. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 1,049,721 shares of company stock valued at $18,020,279 over the last ninety days.

Hedge Funds Weigh In On Netskope

Several institutional investors have recently modified their holdings of the business. Farther Finance Advisors LLC bought a new stake in Netskope during the 4th quarter worth approximately $25,000. Quarry LP bought a new stake in shares of Netskope during the third quarter worth $41,000. Triumph Capital Management raised its holdings in shares of Netskope by 380.0% during the fourth quarter. Triumph Capital Management now owns 2,400 shares of the company's stock worth $42,000 after acquiring an additional 1,900 shares during the period. Wells Fargo & Company MN lifted its position in Netskope by 261.7% in the 4th quarter. Wells Fargo & Company MN now owns 3,617 shares of the company's stock valued at $63,000 after acquiring an additional 2,617 shares in the last quarter. Finally, Leonteq Securities AG acquired a new position in Netskope in the 4th quarter worth $64,000.

Netskope Trading Down 7.0%

The stock has a market capitalization of $4.35 billion and a PE ratio of -110.60. The firm's 50 day moving average price is $16.39. The company has a debt-to-equity ratio of 5.17, a quick ratio of 2.32 and a current ratio of 2.32.

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, beating analysts' consensus estimates of ($0.25) by $0.15. The firm had revenue of $184.17 million during the quarter, compared to analyst estimates of $175.81 million. Netskope's revenue was up 33.0% on a year-over-year basis.

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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