Netskope (NASDAQ:NTSK) Stock Falls 7.3% - Here's What Happened

Key Points

• Netskope shares fell 7.3% to about $18.96 during Friday trading, with volume roughly 65% below the stock’s average daily volume.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $18.75, though individual targets range from $16 to $22.
• Netskope beat quarterly EPS expectations, reporting a loss of $0.03 versus the expected loss of $0.26, but it continues to post significant losses, including a negative net margin of 91.84%.

Netskope Inc. (NASDAQ:NTSK - Get Free Report)'s share price was down 7.3% during trading on Friday. The company traded as low as $19.08 and last traded at $18.9560. Approximately 1,749,292 shares changed hands during mid-day trading, a decline of 65% from the average daily volume of 4,999,576 shares. The stock had previously closed at $20.45.

Wall Street Analysts Forecast Growth

NTSK has been the topic of several recent analyst reports. Deutsche Bank Aktiengesellschaft set a $17.00 target price on shares of Netskope in a research note on Monday, August 17th. TD Cowen reissued a "buy" rating and set a $19.00 price target on shares of Netskope in a research report on Monday, August 17th. Wells Fargo & Company boosted their price target on shares of Netskope from $17.00 to $22.00 and gave the company an "overweight" rating in a report on Thursday. Mizuho set a $16.00 target price on shares of Netskope in a research report on Wednesday, August 19th. Finally, Morgan Stanley raised their price objective on shares of Netskope from $14.00 to $16.00 and gave the stock an "overweight" rating in a research note on Thursday, September 3rd. One analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Netskope currently has a consensus rating of "Moderate Buy" and an average price target of $18.75.

Netskope Price Performance

The company's 50 day moving average price is $16.58 and its 200 day moving average price is $12.86. The company has a debt-to-equity ratio of 4.45, a quick ratio of 2.00 and a current ratio of 2.01. The company has a market cap of $7.73 billion and a price-to-earnings ratio of -7.41.

Netskope (NASDAQ:NTSK - Get Free Report) last announced its quarterly earnings results 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. The firm 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. On average, equities research analysts predict that Netskope Inc. will post -0.82 earnings per share for the current fiscal year.

Insider Activity

In other news, major shareholder Lightspeed Venture Partners Se sold 10,621 shares of the business's stock in a transaction that occurred on Friday, September 11th. The stock was sold at an average price of $14.90, for a total value of $158,252.90. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Company insiders own 25.52% of the company's stock.

Institutional Investors Weigh In On Netskope

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

About Netskope

Netskope, Inc is a cloud security company that provides technology for protecting data, users, applications and networks in modern digital environments. Its platform is designed to help organizations secure access to cloud services, web applications, private applications and other internet-connected resources while supporting distributed workforces and hybrid IT infrastructures.

The company's products include cloud access security broker (CASB) capabilities, secure web gateway services, zero trust network access, data loss prevention, cloud firewall functionality and security analytics.

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