Netskope (NASDAQ:NTSK) Shares Down 9.9% - Should You Sell?

Key Points

• Shares fell 9.9% intraday to $10.50 (from $11.66), with about 2.23M shares trading—roughly 13% below average—and the stock sitting well under its 50‑day moving average of $15.50.
• Analysts hold a consensus of “Moderate Buy” with an average target price of $25.88, though some firms have cut targets and ratings are mixed across the board.
• Insider selling has been heavy: the CFO and CEO sold shares in January and insiders have sold roughly 1,049,721 shares valued at about $18M over the past three months.

Netskope Inc. (NASDAQ:NTSK - Get Free Report)'s share price was down 9.9% during mid-day trading on Friday . The stock traded as low as $10.45 and last traded at $10.50. Approximately 2,232,731 shares traded hands during mid-day trading, a decline of 13% from the average daily volume of 2,556,987 shares. The stock had previously closed at $11.66.

Wall Street Analysts Forecast Growth

NTSK has been the subject of a number of research reports. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and set a $26.00 target price on shares of Netskope in a report on Friday, December 12th. Royal Bank Of Canada reissued an "outperform" rating on shares of Netskope in a report on Wednesday, February 11th. KeyCorp lowered their target price on Netskope from $24.00 to $17.00 and set an "overweight" rating for the company in a report on Tuesday. Weiss Ratings reiterated a "sell (d-)" rating on shares of Netskope in a report on Monday, December 29th. Finally, Piper Sandler reissued an "overweight" rating on shares of Netskope in a research report on Friday, December 12th. One research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $25.88.

Netskope Stock Down 9.7%

The firm has a market cap of $4.14 billion and a price-to-earnings ratio of -105.30. The company has a debt-to-equity ratio of 5.17, a quick ratio of 2.32 and a current ratio of 2.32. The firm has a 50 day moving average price of $15.50.

Netskope (NASDAQ:NTSK - Get Free Report) last issued 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 firm had revenue of $184.17 million during the quarter, compared to analysts' expectations of $175.81 million. The business's revenue for the quarter was up 33.0% on a year-over-year basis.

Insiders Place Their Bets

In other news, CFO Matto Andrew H. Del sold 49,875 shares of the company's stock in a transaction dated Tuesday, January 6th. The stock was sold at an average price of $17.16, for a total value of $855,855.00. Following the sale, the chief financial officer owned 41,493 shares in the company, valued at $712,019.88. This represents a 54.59% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Sanjay Beri sold 31,594 shares of the business's stock in a transaction that occurred on Wednesday, January 7th. The shares were sold at an average price of $17.58, for a total value of $555,422.52. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 1,049,721 shares of company stock valued at $18,020,279.

Institutional Trading of Netskope

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Farther Finance Advisors LLC acquired a new stake in Netskope in the 4th quarter valued at $25,000. Quarry LP purchased a new position in Netskope during the third quarter valued at $41,000. Triumph Capital Management grew its position in shares of Netskope by 380.0% in the fourth quarter. Triumph Capital Management now owns 2,400 shares of the company's stock valued at $42,000 after purchasing an additional 1,900 shares during the period. Wells Fargo & Company MN increased its stake in shares of Netskope by 261.7% during the fourth 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 position in shares of Netskope during the 3rd quarter worth about $83,000.

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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