Netskope (NASDAQ:NTSK) Trading Down 6.5% - Here's Why

Key Points

• Netskope shares fell 6.5% in mid-day trading, with volume far below normal as the stock moved from a prior close of $13.33 to around $12.47.
• Several analysts trimmed price targets on the stock, though the overall consensus remains Moderate Buy with an average target of $17.21.
• The company reported better-than-expected quarterly EPS of -$0.06 and 27.8% revenue growth year over year, while insider activity has been mixed with both large sales and purchases.

Netskope Inc. (NASDAQ:NTSK - Get Free Report)'s stock price traded down 6.5% during mid-day trading on Wednesday . The company traded as low as $12.38 and last traded at $12.4690. Approximately 613,893 shares were traded during trading, a decline of 87% from the average daily volume of 4,663,082 shares. The stock had previously closed at $13.33.

Analyst Ratings Changes

Several analysts recently issued reports on NTSK shares. Mizuho cut their price objective on Netskope from $15.00 to $13.00 and set an "outperform" rating for the company in a report on Thursday, June 4th. BTIG Research lowered their target price on Netskope from $17.00 to $14.00 and set a "buy" rating on the stock in a research note on Thursday, June 4th. Rosenblatt Securities began coverage on Netskope in a research report on Tuesday, April 14th. They issued a "buy" rating and a $15.00 target price on the stock. Morgan Stanley cut their price target on Netskope from $18.00 to $14.00 and set an "overweight" rating for the company in a research note on Thursday, June 4th. Finally, Robert W. Baird lowered their price target on Netskope from $20.00 to $16.00 and set an "outperform" rating for the company in a research note on Thursday, June 4th. One investment analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $17.21.

Netskope Stock Performance

The firm has a market cap of $4.90 billion and a price-to-earnings ratio of -60.64. The firm's 50 day moving average is $11.11 and its 200-day moving average is $11.49. 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 posted its earnings results on Wednesday, June 3rd. The company reported ($0.06) EPS for the quarter, topping the consensus estimate of ($0.07) by $0.01. The business had revenue of $201.59 million for the quarter. The business's quarterly 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. Sell-side analysts anticipate that Netskope Inc. will post -0.88 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director Arif Janmohamed sold 1,313,827 shares of the firm's stock in a transaction that occurred on Friday, June 12th. The stock was sold at an average price of $9.19, for a total value of $12,074,070.13. Following the transaction, the director directly owned 336,173 shares of the company's stock, valued at approximately $3,089,429.87. This trade represents a 79.63% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director William J.G. Griffith bought 610,291 shares of the firm's stock in a transaction on Wednesday, July 8th. The shares were bought at an average cost of $11.82 per share, with a total value of $7,213,639.62. Following the transaction, the director directly owned 610,291 shares of the company's stock, valued at approximately $7,213,639.62. This trade represents a ∞ increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last quarter, insiders acquired 1,833,380 shares of company stock worth $21,960,909 and sold 3,529,696 shares worth $33,002,807. Insiders own 25.52% of the company's stock.

Institutional Trading of Netskope

Several large investors have recently modified their holdings of the company. Scge Management L.P. acquired a new position in Netskope during the 3rd quarter worth $312,104,000. Vanguard Group Inc. increased its stake in shares of Netskope by 51.5% in the fourth quarter. Vanguard Group Inc. now owns 5,332,708 shares of the company's stock worth $93,536,000 after purchasing an additional 1,812,857 shares during the period. Massachusetts Financial Services Co. MA increased its stake in shares of Netskope by 11.7% in the fourth quarter. Massachusetts Financial Services Co. MA now owns 3,561,508 shares of the company's stock worth $62,469,000 after purchasing an additional 373,529 shares during the period. T. Rowe Price Investment Management Inc. lifted its position in shares of Netskope by 14.7% during 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 purchasing an additional 456,321 shares during the last quarter. Finally, Public Sector Pension Investment Board acquired a new position in shares of Netskope during the 4th quarter worth about $60,882,000.

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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