Netskope (NASDAQ:NTSK) Shares Down 5.3% - Should You Sell?

Key Points

• Netskope shares fell 5.3% to about $14.49 in Tuesday trading, on volume that was 84% below the stock’s average daily activity.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and an average price target of $17.71; 16 of 20 analysts rate the stock a Strong Buy or Buy.
• The company reported quarterly revenue of $201.59 million, up 27.8% year over year, and narrowly beat EPS expectations. However, Netskope remains unprofitable, while insider selling over the past three months exceeded insider purchases.

Netskope Inc. (NASDAQ:NTSK - Get Free Report)'s share price traded down 5.3% during trading on Tuesday . The stock traded as low as $14.56 and last traded at $14.4940. Approximately 715,436 shares traded hands during trading, a decline of 84% from the average daily volume of 4,587,753 shares. The stock had previously closed at $15.31.

Analyst Ratings Changes

A number of analysts have weighed in on the company. JPMorgan Chase & Co. upped their price target on Netskope from $14.00 to $16.00 and gave the company an "overweight" rating in a research report on Wednesday, August 26th. Wells Fargo & Company boosted their target price on shares of Netskope from $13.00 to $17.00 and gave the stock an "overweight" rating in a report on Monday, August 17th. Weiss Ratings reiterated a "sell (e+)" rating on shares of Netskope in a research note on Wednesday, July 8th. Morgan Stanley lowered their target price on Netskope from $18.00 to $14.00 and set an "overweight" rating for the company in a report on Thursday, June 4th. Finally, Mizuho set a $16.00 target price on Netskope in a report on Wednesday, August 19th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $17.71.

Netskope Stock Performance

The company has a quick ratio of 2.16, a current ratio of 2.17 and a debt-to-equity ratio of 4.06. The stock has a market capitalization of $5.74 billion and a P/E ratio of -71.33. The business has a fifty day moving average price of $13.10 and a 200-day moving average price of $11.24.

Netskope (NASDAQ:NTSK - Get Free Report) last posted its earnings results on Wednesday, June 3rd. The company reported ($0.06) EPS for the quarter, beating analysts' consensus estimates of ($0.07) by $0.01. The business had revenue of $201.59 million during the quarter. The company's quarterly revenue 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. On average, sell-side analysts expect that Netskope Inc. will post -0.88 EPS for the current year.

Insider Buying and Selling at Netskope

In other news, Director Arif Janmohamed sold 336,173 shares of the stock in a transaction on Monday, June 15th. The stock was sold at an average price of $9.00, for a total value of $3,025,557.00. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, major shareholder Iconiq Strategic Partners Viii bought 64,771 shares of Netskope stock in a transaction on Monday, July 13th. The stock was acquired at an average price of $12.42 per share, for a total transaction of $804,455.82. Following the purchase, the insider owned 916,690 shares of the company's stock, valued at approximately $11,385,289.80. This trade represents a 7.60% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last three months, insiders acquired 1,833,380 shares of company stock valued at $21,960,909 and sold 3,529,696 shares valued at $33,002,807. Insiders own 25.52% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the business. SBI Securities Co. Ltd. increased its position in shares of Netskope by 32.6% during the fourth quarter. SBI Securities Co. Ltd. now owns 5,164 shares of the company's stock valued at $91,000 after purchasing an additional 1,270 shares during the period. Farther Finance Advisors LLC purchased a new stake in shares of Netskope in the fourth quarter worth approximately $25,000. Quarry LP bought a new position in shares of Netskope in the 3rd quarter worth approximately $41,000. Triumph Capital Management lifted its position in shares of Netskope by 380.0% during the 4th quarter. Triumph Capital Management now owns 2,400 shares of the company's stock valued at $42,000 after buying an additional 1,900 shares in the last quarter. Finally, Federation des caisses Desjardins du Quebec increased its position in shares of Netskope by 35.3% during the fourth quarter. Federation des caisses Desjardins du Quebec now owns 9,200 shares of the company's stock worth $161,000 after acquiring an additional 2,400 shares during the period.

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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