Netskope (NASDAQ:NTSK) Shares Gap Down Following Analyst Downgrade

Key Points

• Netskope shares gapped down after Royal Bank of Canada cut its price target to $13 from $14, even though it kept an outperform rating. The stock opened at $9.60 after closing at $12.40 and was last down about 17.5%.
• Recent quarterly results were solid: Netskope reported fiscal Q1 2027 EPS of -$0.06, topping estimates, while revenue rose 27.8% year over year to $201.59 million. The company also raised its Q2 and full-year fiscal 2027 guidance.
• Wall Street remains broadly positive despite multiple target cuts, with the consensus rating at “Moderate Buy” and a consensus price target of $17.26. Analysts cited still generally see upside, though expectations have become more cautious.

Netskope Inc. (NASDAQ:NTSK - Get Free Report) shares gapped down before the market opened on Thursday after Royal Bank Of Canada lowered their price target on the stock from $14.00 to $13.00. The stock had previously closed at $12.40, but opened at $9.60. Royal Bank Of Canada currently has an outperform rating on the stock. Netskope shares last traded at $10.1930, with a volume of 3,539,885 shares.

A number of other equities analysts also recently weighed in on NTSK. Morgan Stanley cut their target price on Netskope from $27.00 to $18.00 and set an "overweight" rating on the stock in a research note on Thursday, March 12th. KeyCorp increased their target price on shares of Netskope from $13.00 to $15.00 and gave the stock an "overweight" rating in a research report on Monday, May 18th. Robert W. Baird decreased their price objective on Netskope from $20.00 to $16.00 and set an "outperform" rating on the stock in a research note on Thursday. FBN Securities began coverage on shares of Netskope in a report on Wednesday, February 25th. They set an "outperform" rating and a $15.00 target price on the stock. Finally, JPMorgan Chase & Co. decreased their target price on Netskope from $23.00 to $19.00 and set an "overweight" rating on the stock in a research note on Thursday, March 12th. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, Netskope has a consensus rating of "Moderate Buy" and a consensus price target of $17.26.

Trending Headlines about Netskope

Here are the key news stories impacting Netskope this week:

• Positive Sentiment: Netskope reported fiscal Q1 2027 results with EPS of -$0.06, beating expectations of -$0.07, and revenue rose 27.8% year over year to $201.59 million. Netskope Announces Strong Fiscal First Quarter 2027 Financial Results
• Positive Sentiment: The company raised guidance for both Q2 and full-year fiscal 2027, with revenue outlooks above consensus and EPS guidance slightly better than expected, signaling continued growth momentum. Netskope Announces Strong Fiscal First Quarter 2027 Financial Results
• Positive Sentiment: Netskope announced new AI-related initiatives, including AI Command Center and participation in Anthropic’s Project Glasswing, which could strengthen its product story in a hot enterprise AI security market. Netskope Joins Anthropic's Project Glasswing
• Neutral Sentiment: Robert W. Baird cut its price target to $16 from $20 while reiterating an outperform rating, suggesting analysts still see upside despite lower near-term expectations. Benzinga
• Neutral Sentiment: BTIG Research lowered its target to $14 from $17 and maintained a buy rating, reflecting a more cautious valuation view but no change in its constructive stance. Benzinga

Institutional Trading of Netskope

A number of hedge funds and other institutional investors have recently modified their holdings of the business. ICONIQ Capital LLC bought a new position in Netskope in the 3rd quarter valued at approximately $1,506,261,000. Scge Management L.P. bought a new position in shares of Netskope during the third quarter valued at $312,104,000. Vanguard Group Inc. boosted its position 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 buying an additional 1,812,857 shares during the last quarter. Massachusetts Financial Services Co. MA increased its holdings in Netskope by 11.7% in the 4th quarter. Massachusetts Financial Services Co. MA now owns 3,561,508 shares of the company's stock worth $62,469,000 after buying 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 buying an additional 456,321 shares during the last quarter.

Netskope Stock Down 17.5%

The company's 50 day simple moving average is $10.24 and its 200-day simple moving average is $13.49. The company has a current ratio of 2.13, a quick ratio of 2.12 and a debt-to-equity ratio of 3.71. The firm has a market cap of $4.09 billion and a P/E ratio of -72.32.

Netskope (NASDAQ:NTSK - Get Free Report) last issued its earnings results on Wednesday, June 3rd. The company reported ($0.06) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.07) by $0.01. The company had revenue of $201.59 million during the quarter. The business's revenue was up 27.8% on a year-over-year basis. Netskope has set its Q2 2027 guidance at -0.070--0.060 EPS and its FY 2027 guidance at -0.180--0.180 EPS. Research analysts forecast that Netskope Inc. will post -0.19 earnings per share for the current fiscal year.

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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