Netskope (NASDAQ:NTSK) Trading Down 5.6% - Should You Sell?

Key Points

• Netskope shares fell 5.6% to about $14.26, on trading volume well below the stock’s average. Despite the decline, the shares remain above their 50-day and 200-day moving averages.
• Analysts remain broadly positive, with 16 Buy ratings, three Holds and one Sell, producing a “Moderate Buy” consensus and an average price target of $19.03.
• The company beat quarterly EPS expectations, reporting a loss of $0.03 versus the expected $0.26 loss, but remains unprofitable with a negative 91.84% net margin. Insiders have been net buyers over the past 90 days, purchasing 1.83 million shares compared with 902,042 shares sold.

Shares of Netskope Inc. (NASDAQ:NTSK - Get Free Report) dropped 5.6% during trading on Friday . The stock traded as low as $14.43 and last traded at $14.2560. 1,137,669 shares traded hands during trading, a decline of 76% from the average session volume of 4,686,354 shares. The stock had previously closed at $15.10.

Analysts Set New Price Targets

Several brokerages recently issued reports on NTSK. Mizuho set a $16.00 target price on shares of Netskope in a research note on Wednesday, August 19th. BMO Capital Markets upped their price objective on shares of Netskope from $13.00 to $18.00 and gave the company an "outperform" rating in a report on Thursday, September 3rd. Wells Fargo & Company raised their target price on Netskope from $13.00 to $17.00 and gave the company an "overweight" rating in a research note on Monday, August 17th. BTIG Research upped their price target on Netskope from $17.00 to $18.00 and gave the stock a "buy" rating in a research note on Thursday, September 3rd. Finally, Royal Bank Of Canada increased their price target on Netskope from $18.00 to $20.00 and gave the stock an "outperform" rating in a report on Thursday, September 3rd. Sixteen research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $19.03.

Netskope Stock Down 4.6%

The company has a current ratio of 2.01, a quick ratio of 2.00 and a debt-to-equity ratio of 4.45. The stock has a market capitalization of $5.82 billion and a PE ratio of -5.64. The stock's fifty day simple moving average is $13.70 and its 200-day simple moving average is $11.39.

Netskope (NASDAQ:NTSK - Get Free Report) last announced its earnings results on Wednesday, September 2nd. The company reported ($0.03) EPS for the quarter, beating the consensus estimate of ($0.26) by $0.23. Netskope had a negative net margin of 91.84% and a negative return on equity of 83.84%. The company had revenue of $220.54 million during 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. As a group, sell-side analysts forecast that Netskope Inc. will post -0.82 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, major shareholder Lightspeed Venture Partners Se sold 336,173 shares of Netskope stock in a transaction on Monday, June 15th. The stock was sold at an average price of $9.00, for a total transaction of $3,025,557.00. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director William J.G. Griffith acquired 610,291 shares of the business's stock in a transaction on Wednesday, July 8th. The stock was acquired at an average cost of $11.82 per share, for a total transaction of $7,213,639.62. Following the transaction, the director owned 610,291 shares of the company's stock, valued at approximately $7,213,639.62. The trade was a ∞ increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last 90 days, insiders have bought 1,833,380 shares of company stock worth $21,960,909 and have sold 902,042 shares worth $8,854,667. Insiders own 25.52% of the company's stock.

Institutional Investors Weigh In On Netskope

A number of hedge funds have recently made changes to their positions in the business. Quarry LP bought a new position in Netskope during the third quarter valued at about $41,000. Triumph Capital Management grew 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 acquiring an additional 1,900 shares during the period. Operose Advisors LLC bought a new stake in shares of Netskope in the 2nd quarter worth approximately $56,000. Wells Fargo & Company MN lifted its stake in Netskope by 261.7% in the fourth quarter. Wells Fargo & Company MN now owns 3,617 shares of the company's stock valued at $63,000 after purchasing an additional 2,617 shares during the last quarter. Finally, Leonteq Securities AG bought a new position in Netskope during the fourth quarter valued at $64,000.

About Netskope

Netskope, Inc is a cybersecurity company that provides a cloud-native platform designed to help organizations secure data, users, devices, applications and networks. Its offerings address security needs arising from cloud computing, remote work and the use of software-as-a-service applications.

The company's platform includes security service edge (SSE) and secure access service edge (SASE) capabilities, such as cloud access security broker (CASB) services, secure web gateways, zero-trust network access, data loss prevention, cloud firewall functionality and security analytics.

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