Netskope (NASDAQ:NTSK) Stock Jumps 5.5% - What's Next?

Key Points

• Netskope shares rose 5.5% to approximately $20.92, lifting the company’s market capitalization to $8.56 billion, although trading volume was substantially below average.
• Analyst sentiment remains positive, with a consensus “Moderate Buy” rating and an average price target of $18.75; Wells Fargo recently raised its target to $22.00.
• Netskope exceeded quarterly earnings expectations, reporting a loss of $0.03 per share versus the expected $0.26 loss, but remains unprofitable with a negative net margin of 91.84%.

Netskope Inc. (NASDAQ:NTSK - Get Free Report) rose 5.5% on Wednesday. The company traded as high as $20.96 and last traded at $20.9190. Approximately 316,945 shares changed hands during mid-day trading, a decline of 94% from the average daily volume of 5,065,879 shares. The stock had previously closed at $19.82.

Wall Street Analysts Forecast Growth

NTSK has been the subject of a number of recent research reports. KeyCorp lifted their price objective on Netskope from $16.00 to $17.50 and gave the stock an "overweight" rating in a research report on Friday, August 21st. Wells Fargo & Company upped their target price on shares of Netskope from $17.00 to $22.00 and gave the company an "overweight" rating in a report on Thursday, October 15th. Deutsche Bank Aktiengesellschaft set a $17.00 price target on shares of Netskope in a research note on Monday, August 17th. Royal Bank Of Canada raised their price target on shares of Netskope from $18.00 to $20.00 and gave the stock an "outperform" rating in a research note on Thursday, September 3rd. Finally, TD Cowen reiterated a "buy" rating and set a $19.00 price target on shares of Netskope in a report on Monday, August 17th. One research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Netskope currently has a consensus rating of "Moderate Buy" and a consensus price target of $18.75.

Netskope Trading Up 5.7%

The business's fifty day moving average is $16.83 and its 200-day moving average is $13.10. The stock has a market capitalization of $8.56 billion and a PE ratio of -8.22. The company has a quick ratio of 2.00, a current ratio of 2.01 and a debt-to-equity ratio of 4.45.

Netskope (NASDAQ:NTSK - Get Free Report) last issued its quarterly earnings results on Wednesday, September 2nd. The company reported ($0.03) EPS for the quarter, topping 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. As a group, analysts anticipate that Netskope Inc. will post -0.82 EPS for the current fiscal year.

Insider Activity

In other news, major shareholder Lightspeed Venture Partners Se sold 10,621 shares of the company's stock in a transaction on Friday, September 11th. The stock was sold at an average price of $14.90, for a total transaction of $158,252.90. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 25.52% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Wasatch Advisors LP purchased a new stake in Netskope during the second quarter worth approximately $25,107,000. Principal Financial Group Inc. raised its stake in shares of Netskope by 31.4% in the 1st quarter. Principal Financial Group Inc. now owns 2,547,468 shares of the company's stock valued at $21,628,000 after acquiring an additional 608,355 shares during the period. New York Life Insurance Co. purchased a new position in shares of Netskope in the 2nd quarter valued at $11,325,580. Wellington Management Group LLP purchased a new position in shares of Netskope in the 2nd quarter valued at $2,027,000. Finally, Bank of New York Mellon Corp lifted its holdings in shares of Netskope by 1,381.8% during the 1st quarter. Bank of New York Mellon Corp now owns 475,918 shares of the company's stock valued at $4,041,000 after acquiring an additional 443,800 shares in 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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