Netskope (NASDAQ:NTSK) Sets New 52-Week Low - What's Next?

Key Points

• New 52-week low: Netskope shares fell to $9.79 (last $9.98) on heavy volume and were down about 10.1%, leaving the company with a market cap of $3.72 billion and a negative P/E.
• Analysts still skew positive with a MarketBeat average rating of "Moderate Buy" and an average target of $25.88, though some firms have trimmed targets (e.g., Mizuho to $20) while others maintain Outperform/Overweight calls.
• Insider selling was notable — the CEO and CFO sold shares in early January and insiders disposed of roughly 1,049,721 shares (~$18.0M) last quarter, despite the company reporting a 33% revenue increase and an EPS beat in its most recent quarter.

Netskope Inc. (NASDAQ:NTSK - Get Free Report) reached a new 52-week low during mid-day trading on Monday . The stock traded as low as $9.79 and last traded at $9.98, with a volume of 563913 shares trading hands. The stock had previously closed at $10.53.

Analysts Set New Price Targets

Several research analysts recently commented on the stock. Piper Sandler reaffirmed an "overweight" rating on shares of Netskope in a report on Friday, December 12th. Robert W. Baird assumed coverage on Netskope in a report on Monday, October 27th. They issued an "outperform" rating and a $27.00 price target for the company. Mizuho reduced their price target on Netskope from $26.00 to $20.00 and set an "outperform" rating for the company in a research report on Tuesday, February 17th. Royal Bank Of Canada reissued an "outperform" rating on shares of Netskope in a report on Wednesday, February 11th. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of Netskope in a report on Monday, December 29th. One analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $25.88.

Netskope Trading Down 10.1%

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 stock has a 50 day simple moving average of $15.50. The firm has a market cap of $3.72 billion and a price-to-earnings ratio of -94.70.

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

Insider Activity at Netskope

In other news, CEO Sanjay Beri sold 346,061 shares of the firm's stock in a transaction dated Friday, January 2nd. The shares were sold at an average price of $16.91, for a total value of $5,851,891.51. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Matto Andrew H. Del sold 77,207 shares of the company's stock in a transaction dated Friday, January 2nd. The shares were sold at an average price of $16.92, for a total transaction of $1,306,342.44. Following the transaction, the chief financial officer owned 41,493 shares in the company, valued at $702,061.56. The trade was a 65.04% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 1,049,721 shares of company stock valued at $18,020,279.

Institutional Investors Weigh In On Netskope

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. ICONIQ Capital LLC bought a new position in shares of Netskope during the third quarter valued at approximately $1,506,261,000. Scge Management L.P. purchased a new stake in Netskope during the third quarter worth $312,104,000. Vanguard Group Inc. boosted its position in Netskope by 51.5% during the 4th quarter. Vanguard Group Inc. now owns 5,332,708 shares of the company's stock valued at $93,536,000 after acquiring an additional 1,812,857 shares in the last quarter. Massachusetts Financial Services Co. MA increased its holdings in shares of Netskope by 11.7% in the 4th quarter. Massachusetts Financial Services Co. MA now owns 3,561,508 shares of the company's stock valued at $62,469,000 after acquiring an additional 373,529 shares during the period. Finally, T. Rowe Price Investment Management Inc. raised its position in shares of 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 acquiring an additional 456,321 shares in 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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