Netskope (NASDAQ:NTSK) Shares Gap Up on Insider Buying Activity

Key Points

• Netskope shares gapped up after insider buying, opening at $12.87 versus the prior close of $12.32 before easing back to around $12.19.
• Director William J.G. Griffith and major shareholder Iconiq Strategic Partners VIII each bought 610,291 shares at $11.82 apiece, a transaction worth about $7.21 million each.
• Analysts remain mostly positive despite recent target cuts, with Netskope carrying a Moderate Buy consensus and an average price target of $17.11.

Netskope Inc. (NASDAQ:NTSK - Get Free Report)'s share price gapped up prior to trading on Monday following insider buying activity. The stock had previously closed at $12.32, but opened at $12.87. Netskope shares last traded at $12.1920, with a volume of 571,008 shares.

Specifically, Director William J.G. Griffith purchased 610,291 shares of the firm's stock in a transaction dated Wednesday, July 8th. The stock was bought at an average price of $11.82 per share, for a total transaction of $7,213,639.62. Following the purchase, the director directly owned 610,291 shares in the company, valued at approximately $7,213,639.62. This trade represents a ∞ increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, major shareholder Iconiq Strategic Partners Viii purchased 610,291 shares of the stock in a transaction that occurred on Wednesday, July 8th. The stock was bought at an average cost of $11.82 per share, for a total transaction of $7,213,639.62. Following the acquisition, the insider directly owned 610,291 shares in the company, valued at $7,213,639.62. This trade represents a ∞ increase in their position. Additional details regarding this purchase are available in the official SEC disclosure.

Wall Street Analyst Weigh In

Several equities analysts have weighed in on the company. Piper Sandler reduced their price objective on Netskope from $21.00 to $18.00 and set an "overweight" rating for the company in a report on Thursday, June 4th. Wells Fargo & Company dropped their price target on Netskope from $14.00 to $13.00 and set an "overweight" rating on the stock in a research report on Friday, June 5th. TD Cowen decreased their price objective on Netskope from $25.00 to $19.00 and set a "buy" rating for the company in a report on Thursday, June 4th. KeyCorp lowered their price objective on Netskope from $15.00 to $14.00 and set an "overweight" rating on the stock in a research note on Thursday, June 25th. Finally, Robert W. Baird dropped their price objective on shares of Netskope from $20.00 to $16.00 and set an "outperform" rating on the stock in a report on Thursday, June 4th. One analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $17.11.

Netskope Trading Down 0.9%

The firm has a 50 day simple moving average of $10.75 and a 200 day simple moving average of $11.73. The company has a debt-to-equity ratio of 4.06, a quick ratio of 2.16 and a current ratio of 2.17. The firm has a market cap of $4.93 billion and a P/E ratio of -61.03.

Netskope (NASDAQ:NTSK - Get Free Report) last announced its quarterly earnings results on Wednesday, June 3rd. The company reported ($0.06) earnings per share for the quarter, beating the consensus estimate of ($0.07) by $0.01. The company had revenue of $201.59 million for the quarter. The company's revenue was up 27.8% compared to the same quarter last year. Netskope has set its Q2 2027 guidance at -0.070--0.060 EPS and its FY 2027 guidance at -0.180--0.180 EPS. On average, equities research analysts predict that Netskope Inc. will post -0.88 EPS for the current fiscal year.

Institutional Trading of Netskope

Hedge funds and other institutional investors have recently bought and sold shares of the company. ICONIQ Capital LLC bought a new position in Netskope in the 3rd quarter valued at $1,506,261,000. Scge Management L.P. bought a new position in shares of Netskope in the third quarter worth $312,104,000. Vanguard Group Inc. grew its position in Netskope by 51.5% during the fourth quarter. Vanguard Group Inc. now owns 5,332,708 shares of the company's stock worth $93,536,000 after buying an additional 1,812,857 shares in the last quarter. Massachusetts Financial Services Co. MA increased its stake 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 acquiring an additional 373,529 shares during the last quarter. Finally, T. Rowe Price Investment Management Inc. increased its stake 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 acquiring an additional 456,321 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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