Netskope (NASDAQ:NTSK) Stock Price Up 6.8% on Analyst Upgrade

Key Points

• Netskope shares rose 6.8% after BTIG Research raised its price target from $18 to $22 while maintaining a buy rating. The stock reached $19.85 during trading, though volume was 77% below its average.
• Analyst sentiment remains broadly positive, with an overall “Moderate Buy” rating and an average price target of $19.32; multiple firms have recently raised their targets.
• Insiders bought 1.83 million shares worth approximately $22.0 million over the past three months. Netskope also beat quarterly EPS estimates, reporting a loss of $0.03 per share versus the expected $0.26 loss, but remains unprofitable.

Netskope Inc. (NASDAQ:NTSK - Get Free Report)'s stock price rose 6.8% on Tuesday after BTIG Research raised their price target on the stock from $18.00 to $22.00. BTIG Research currently has a buy rating on the stock. Netskope traded as high as $19.85 and last traded at $19.6640. 1,127,985 shares changed hands during mid-day trading, a decline of 77% from the average daily volume of 4,928,227 shares. The stock had previously closed at $18.42.

NTSK has been the subject of a number of other reports. JPMorgan Chase & Co. boosted their price target on Netskope from $16.00 to $18.00 and gave the company an "overweight" rating in a report on Thursday, September 3rd. Oppenheimer boosted their target price on shares of Netskope from $16.00 to $19.00 and gave the company an "outperform" rating in a research note on Wednesday, August 19th. KeyCorp increased their price target on shares of Netskope from $16.00 to $17.50 and gave the stock an "overweight" rating in a report on Friday, August 21st. Rosenblatt Securities lifted their price objective on shares of Netskope from $18.00 to $19.00 and gave the company a "buy" rating in a report on Thursday, September 3rd. Finally, TD Cowen reissued a "buy" rating and set a $19.00 target price on shares of Netskope in a research note on Monday, August 17th. One investment analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $19.32.

Insider Activity

In related news, Director William J.G. Griffith bought 64,771 shares of the stock in a transaction dated Monday, July 13th. The shares were acquired at an average cost of $12.42 per share, for a total transaction of $804,455.82. Following the acquisition, the director directly owned 916,690 shares in the company, valued at approximately $11,385,289.80. This trade represents a 7.60% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, major shareholder Iconiq Strategic Partners Viii acquired 64,771 shares of Netskope stock in a transaction that occurred on Monday, July 13th. The shares were bought at an average price of $12.42 per share, for a total transaction of $804,455.82. Following the transaction, the insider owned 916,690 shares of the company's stock, valued at $11,385,289.80. This represents a 7.60% increase in their position. The SEC filing for this purchase provides additional information. Over the last three months, insiders acquired 1,833,380 shares of company stock worth $21,960,909 and sold 240,317 shares worth $2,961,806. Company insiders own 25.52% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in NTSK. Rockefeller Capital Management L.P. increased its holdings in Netskope by 199,900.0% in the 4th quarter. Rockefeller Capital Management L.P. now owns 4,000 shares of the company's stock valued at $70,000 after purchasing an additional 3,998 shares during the last quarter. Caitong International Asset Management Co. Ltd purchased a new stake in Netskope in the 4th quarter valued at approximately $87,000. Operose Advisors LLC acquired a new stake in shares of Netskope during the second quarter worth $56,000. FNY Investment Advisers LLC lifted its holdings in shares of 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 acquiring an additional 4,000 shares during the period. Finally, Assetmark Inc. grew its stake in shares of Netskope by 57.6% during the 1st quarter. Assetmark Inc. now owns 9,264 shares of the company's stock valued at $79,000 after buying an additional 3,385 shares during the period.

Netskope Price Performance

The company has a 50 day simple moving average of $15.42 and a 200 day simple moving average of $12.23. 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 company has a market capitalization of $8.06 billion and a price-to-earnings ratio of -7.73.

Netskope (NASDAQ:NTSK - Get Free Report) last issued its earnings results on Wednesday, September 2nd. The company reported ($0.03) EPS for the quarter, beating analysts' consensus estimates of ($0.26) by $0.23. The business had revenue of $220.54 million for 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, research analysts predict that Netskope Inc. will post -0.82 EPS for the current year.

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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