Netskope (NASDAQ:NTSK) Stock Falls 6.2% - Here's Why

Key Points

• Netskope shares fell 6.2% to about $22.80 in mid-day trading, while trading volume was 92% below the stock’s average session volume.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating; BTIG raised its price target to $30, though the consensus target is $19.19.
• The company beat quarterly EPS expectations, reporting a loss of $0.03 per share versus the expected $0.26 loss, but continues to post substantial negative margins and return on equity.

Netskope Inc. (NASDAQ:NTSK - Get Free Report)'s stock price traded down 6.2% during mid-day trading on Monday. The company traded as low as $22.94 and last traded at $22.7980. 409,636 shares changed hands during mid-day trading, a decline of 92% from the average session volume of 5,146,352 shares. The stock had previously closed at $24.30.

Analysts Set New Price Targets

NTSK has been the subject of a number of analyst reports. Stephens began coverage on Netskope in a research note on Monday, September 14th. They issued an "overweight" rating and a $21.00 price target for the company. BTIG Research upped their price objective on Netskope from $22.00 to $30.00 and gave the stock a "buy" rating in a research note on Monday. Wells Fargo & Company increased their price objective on Netskope from $17.00 to $22.00 and gave the company an "overweight" rating in a report on Thursday, October 15th. Robert W. Baird raised their target price on shares of Netskope from $18.00 to $20.00 and gave the company an "outperform" rating in a research note on Thursday, September 3rd. Finally, KeyCorp boosted their target price on shares of Netskope from $16.00 to $17.50 and gave the stock an "overweight" rating in a report on Friday, August 21st. Two research analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating, two have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, Netskope has a consensus rating of "Moderate Buy" and a consensus price target of $19.19.

Netskope Price Performance

The company has a quick ratio of 2.00, a current ratio of 2.01 and a debt-to-equity ratio of 4.45. The firm has a market cap of $9.44 billion, a P/E ratio of -9.08 and a beta of 2.41. The business has a fifty day moving average of $18.35 and a 200 day moving average of $13.24.

Netskope (NASDAQ:NTSK - Get Free Report) last released its quarterly earnings data on Wednesday, September 2nd. The company reported ($0.03) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.26) by $0.23. Netskope had a negative return on equity of 83.84% and a negative net margin of 91.84%. The firm had revenue of $220.54 million for the quarter. Netskope has set its FY 2027 guidance at -0.150--0.150 EPS and its Q3 2027 guidance at -0.040--0.030 EPS. On average, sell-side analysts anticipate that Netskope Inc. will post -0.82 earnings per share for the current year.

Insider Buying and Selling

In other Netskope news, major shareholder Lightspeed Venture Partners Se sold 10,621 shares of the company's stock in a transaction on 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 filing with the SEC, which can be accessed through this link. 25.52% of the stock is currently owned by company insiders.

Institutional Trading of Netskope

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Principal Financial Group Inc. lifted its position in Netskope by 31.4% during the first quarter. Principal Financial Group Inc. now owns 2,547,468 shares of the company's stock worth $21,628,000 after acquiring an additional 608,355 shares during the last quarter. Wasatch Advisors LP bought a new position in shares of Netskope during the second quarter worth approximately $25,107,000. Weiss Asset Management LP bought a new position in shares of Netskope during the first quarter worth approximately $8,957,000. New York Life Insurance Co. acquired a new stake in Netskope during the 2nd quarter worth approximately $11,325,580. Finally, Stephens Investment Management Group LLC lifted its holdings in Netskope by 117.5% during the 1st quarter. Stephens Investment Management Group LLC now owns 977,786 shares of the company's stock worth $8,301,000 after purchasing an additional 528,164 shares during the last quarter.

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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