Netskope (NASDAQ:NTSK) Trading 8.6% Higher - Here's Why

Key Points

• Netskope shares rose 8.6% to $11.50 on Thursday (intraday high $11.51) on ~1.96M shares traded, about 29% below its average session volume.
• Wall Street has a consensus rating of "Moderate Buy" with a consensus target price of $23.47, amid recent analyst activity including FBN starting coverage with an "outperform" and several firms trimming price targets.
• Netskope beat its last quarter's EPS and revenue estimates (EPS -$0.10 vs. -$0.25 est.; revenue $184.17M, +33% YoY), but the stock has a negative P/E and insiders sold 1,049,721 shares (~$18.0M) in the past 90 days.

Netskope Inc. (NASDAQ:NTSK - Get Free Report) shares traded up 8.6% during trading on Thursday . The stock traded as high as $11.51 and last traded at $11.50. 1,958,780 shares traded hands during mid-day trading, a decline of 29% from the average session volume of 2,753,251 shares. The stock had previously closed at $10.59.

Wall Street Analyst Weigh In

Several research analysts have issued reports on the company. FBN Securities started coverage on Netskope in a report on Wednesday, February 25th. They issued an "outperform" rating and a $15.00 price target on the stock. KeyCorp cut their price objective on shares of Netskope from $24.00 to $17.00 and set an "overweight" rating on the stock in a report on Tuesday, February 17th. Piper Sandler reaffirmed an "overweight" rating on shares of Netskope in a research report on Friday, December 12th. Royal Bank Of Canada reiterated an "outperform" rating on shares of Netskope in a research note on Wednesday, February 11th. Finally, Mizuho reduced their target price on shares of Netskope from $26.00 to $20.00 and set an "outperform" rating for the company in a research report on Tuesday, February 17th. Two investment analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Netskope presently has a consensus rating of "Moderate Buy" and a consensus target price of $23.47.

Netskope Stock Performance

The stock's 50 day moving average is $14.12. The company has a quick ratio of 2.32, a current ratio of 2.32 and a debt-to-equity ratio of 5.17. The firm has a market cap of $4.55 billion and a price-to-earnings ratio of -115.80.

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

Insider Activity

In related news, CFO Matto Andrew H. Del sold 77,207 shares of the company's stock in a transaction that occurred on Friday, January 2nd. The shares were sold at an average price of $16.92, for a total value of $1,306,342.44. Following the transaction, the chief financial officer directly owned 41,493 shares in the company, valued at approximately $702,061.56. This represents a 65.04% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CRO Raphael Bousquet sold 3,823 shares of the company's stock in a transaction that occurred on Monday, January 12th. The stock was sold at an average price of $16.66, for a total transaction of $63,691.18. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 1,049,721 shares of company stock worth $18,020,279.

Hedge Funds Weigh In On Netskope

A number of hedge funds and other institutional investors have recently bought and sold shares of NTSK. Farther Finance Advisors LLC purchased a new stake in shares of Netskope during the 4th quarter valued at $25,000. Quarry LP purchased a new stake in Netskope during the third quarter valued at about $41,000. Triumph Capital Management lifted its stake in Netskope by 380.0% during the fourth quarter. Triumph Capital Management now owns 2,400 shares of the company's stock worth $42,000 after purchasing an additional 1,900 shares during the last quarter. Wells Fargo & Company MN boosted its holdings in shares of Netskope by 261.7% in the 4th 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, Leonteq Securities AG purchased a new position in shares of Netskope in the 4th quarter worth about $64,000.

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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