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

Key Points

• Netskope shares fell sharply at Monday’s open, dropping from a $15.81 close to $15.04 and recently trading near $14.96.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $17.47, despite several recent target reductions and one “Sell” rating.
• The company reported quarterly revenue of $201.59 million, up 27.8% year over year, and beat consensus EPS estimates; however, it remains unprofitable, with analysts expecting a full-year loss.

Shares of Netskope Inc. (NASDAQ:NTSK - Get Free Report) gapped down prior to trading on Monday . The stock had previously closed at $15.81, but opened at $15.04. Netskope shares last traded at $14.9610, with a volume of 452,989 shares trading hands.

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on the stock. Piper Sandler dropped their price target on shares of Netskope from $21.00 to $18.00 and set an "overweight" rating on the stock in a research note on Thursday, June 4th. Royal Bank Of Canada upped their price objective on shares of Netskope from $13.00 to $18.00 and gave the company an "outperform" rating in a research report on Friday. Citizens Jmp lowered their target price on Netskope from $23.00 to $17.00 and set a "market outperform" rating for the company in a research note on Friday, May 1st. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Netskope in a research report on Wednesday, July 8th. Finally, Mizuho reduced their price target on Netskope from $15.00 to $13.00 and set an "outperform" rating for the company in a report on Thursday, June 4th. One investment analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $17.47.

Netskope Stock Performance

The company's fifty day simple moving average is $11.84 and its two-hundred day simple moving average is $11.16. The company has a market capitalization of $6.17 billion and a price-to-earnings ratio of -76.35. The company has a debt-to-equity ratio of 4.06, a quick ratio of 2.16 and a current ratio of 2.17.

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, beating analysts' consensus estimates of ($0.07) by $0.01. The company had revenue of $201.59 million during the quarter. The company's revenue for the quarter 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. Equities research analysts predict that Netskope Inc. will post -0.88 earnings per share for the current fiscal year.

Insider Transactions at Netskope

In other Netskope news, major shareholder Lightspeed Venture Partners Se sold 219,075 shares of the stock in a transaction that occurred on Thursday, July 9th. The stock was sold at an average price of $12.23, for a total transaction of $2,679,287.25. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, Director William J.G. Griffith bought 64,771 shares of the firm's stock in a transaction dated Monday, July 13th. The stock was purchased at an average price of $12.42 per share, with a total value of $804,455.82. Following the transaction, the director owned 916,690 shares in the company, valued at approximately $11,385,289.80. This represents a 7.60% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last ninety days, insiders have bought 1,833,380 shares of company stock worth $21,960,909 and have sold 3,529,696 shares worth $33,002,807. 25.52% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Netskope

Hedge funds have recently added to or reduced their stakes in the business. New York Life Insurance Co. bought a new stake in Netskope during the second quarter valued at $11,325,580,000. Abound Wealth Management acquired a new position in shares of Netskope in the 2nd quarter valued at about $496,000. Wasatch Advisors LP acquired a new position in shares of Netskope in the 2nd quarter valued at about $25,107,000. Camelot Technology Advisors Inc. bought a new stake in shares of Netskope during the 2nd quarter valued at about $193,000. Finally, FNY Investment Advisers LLC grew its position in shares of Netskope by 88.9% during the 2nd quarter. FNY Investment Advisers LLC now owns 8,500 shares of the company's stock valued at $92,000 after buying an additional 4,000 shares during the last quarter.

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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