Traders Buy Large Volume of Call Options on Netskope (NASDAQ:NTSK)

Key Points

• Options activity surged: Traders purchased 6,819 Netskope call options, about 53% above the average volume of 4,448 contracts.
• Analyst sentiment remains broadly positive: Netskope has a consensus “Moderate Buy” rating and an average price target of $18.75, despite one sell rating.
• The stock reached a new high: Shares rose to $26.36, compared with a 52-week range of $7.66 to $26.29. The company remains unprofitable, reporting negative margins and expected negative full-year EPS.

Netskope Inc. (NASDAQ:NTSK - Get Free Report) saw unusually large options trading activity on Tuesday. Traders purchased 6,819 call options on the stock. This represents an increase of approximately 53% compared to the average volume of 4,448 call options.

Insider Activity at Netskope

In related news, major shareholder Lightspeed Venture Partners Se sold 10,621 shares of the stock in a transaction dated Friday, September 11th. The shares were sold at an average price of $14.90, for a total value of $158,252.90. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 25.52% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Walser Wealth Management Company A Ltd Liability Co lifted its holdings in Netskope by 6.4% during the 3rd quarter. Walser Wealth Management Company A Ltd Liability Co now owns 15,554 shares of the company's stock worth $271,000 after buying an additional 939 shares in the last quarter. Triumph Capital Management boosted its holdings in Netskope by 2.9% in the second quarter. Triumph Capital Management now owns 70,505 shares of the company's stock valued at $771,000 after acquiring an additional 1,977 shares during the last quarter. Assetmark Inc. boosted its holdings in Netskope by 57.6% in the first quarter. Assetmark Inc. now owns 9,264 shares of the company's stock valued at $79,000 after acquiring an additional 3,385 shares during the last quarter. Rockefeller Capital Management L.P. increased its position in Netskope by 199,900.0% in the fourth quarter. Rockefeller Capital Management L.P. now owns 4,000 shares of the company's stock worth $70,000 after purchasing an additional 3,998 shares during the period. Finally, FNY Investment Advisers LLC raised its holdings in Netskope by 88.9% during the 2nd quarter. FNY Investment Advisers LLC now owns 8,500 shares of the company's stock worth $92,000 after purchasing an additional 4,000 shares during the last quarter.

Wall Street Analysts Forecast Growth

NTSK has been the topic of several recent research reports. Piper Sandler lifted their price objective on Netskope from $18.00 to $20.00 and gave the stock an "overweight" rating in a report on Thursday, September 3rd. Weiss Ratings restated a "sell (e+)" rating on shares of Netskope in a research note on Friday, October 2nd. Rosenblatt Securities raised their price objective on shares of Netskope from $18.00 to $19.00 and gave the stock a "buy" rating in a report on Thursday, September 3rd. Robert W. Baird upped their price objective on Netskope from $18.00 to $20.00 and gave the company an "outperform" rating in a research note on Thursday, September 3rd. Finally, BMO Capital Markets raised their target price on Netskope from $13.00 to $18.00 and gave the stock an "outperform" rating in a research report on Thursday, September 3rd. One analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $18.75.

Netskope Price Performance

NTSK stock traded up $1.16 during trading on Tuesday, hitting $26.36. 5,166,306 shares of the stock traded hands, compared to its average volume of 5,138,136. The company has a current ratio of 2.01, a quick ratio of 2.00 and a debt-to-equity ratio of 4.45. The stock has a market cap of $10.77 billion and a price-to-earnings ratio of -10.31. Netskope has a one year low of $7.66 and a one year high of $26.29. The company has a 50 day simple moving average of $17.29 and a 200 day simple moving average of $13.02.

Netskope (NASDAQ:NTSK - Get Free Report) last posted its earnings results on Wednesday, September 2nd. The company reported ($0.03) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.26) by $0.23. The company had revenue of $220.54 million during the quarter. Netskope had a negative net margin of 91.84% and a negative return on equity of 83.84%. Netskope has set its FY 2027 guidance at -0.150--0.150 EPS and its Q3 2027 guidance at -0.040--0.030 EPS. Equities analysts expect that Netskope will post -0.82 EPS for the current fiscal year.

Netskope Company Profile

Netskope, Inc is a cybersecurity company that provides cloud-based security and networking solutions for organizations operating in cloud, web, data center and remote-work environments. Its platform is designed to help enterprises protect data, applications and users while providing visibility and control across distributed information-technology environments.

The company's Netskope One platform brings together security service edge (SSE) and secure access service edge (SASE) capabilities.

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