Netskope (NASDAQ:NTSK) Trading Up 5.1% - Still a Buy?

Key Points

• Netskope shares rose 5.1% to about $15.19, although trading volume was 94% below the average daily level.
• Analyst sentiment remains favorable: 16 analysts rate the stock Buy, three Hold, and one Sell, producing a “Moderate Buy” consensus and an average price target of $19.03.
• Netskope beat quarterly EPS expectations, reporting a loss of $0.03 versus the projected loss of $0.26, but remains unprofitable with a negative net margin of 91.84%; insiders have sold more shares than they bought over the past 90 days.

Netskope Inc. (NASDAQ:NTSK - Get Free Report)'s share price shot up 5.1% on Thursday . The stock traded as high as $15.13 and last traded at $15.1910. 285,014 shares traded hands during trading, a decline of 94% from the average daily volume of 4,677,741 shares. The stock had previously closed at $14.46.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on the company. Weiss Ratings reissued a "sell (e+)" rating on shares of Netskope in a report on Wednesday, July 8th. Wells Fargo & Company raised their target price on shares of Netskope from $13.00 to $17.00 and gave the company an "overweight" rating in a research note on Monday, August 17th. Royal Bank Of Canada boosted their price target on shares of Netskope from $18.00 to $20.00 and gave the stock an "outperform" rating in a research report on Thursday, September 3rd. TD Cowen reiterated a "buy" rating and issued a $19.00 price objective on shares of Netskope in a report on Monday, August 17th. Finally, Robert W. Baird raised their price objective 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. Sixteen equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $19.03.

Netskope Trading Up 4.5%

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 stock has a market capitalization of $6.10 billion and a P/E ratio of -5.92. The firm's 50-day simple moving average is $13.63 and its 200 day simple moving average is $11.36.

Netskope (NASDAQ:NTSK - Get Free Report) last announced its quarterly earnings data on Wednesday, September 2nd. The company reported ($0.03) earnings per share (EPS) for the quarter, topping 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 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. Equities research analysts anticipate that Netskope Inc. will post -0.88 EPS for the current fiscal year.

Insider Buying and Selling at Netskope

In other Netskope news, Director Arif Janmohamed sold 1,313,827 shares of the company's stock in a transaction on Friday, June 12th. The stock was sold at an average price of $9.19, for a total value of $12,074,070.13. Following the transaction, the director owned 336,173 shares of the company's stock, valued at approximately $3,089,429.87. This represents a 79.63% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, major shareholder Iconiq Strategic Partners Viii acquired 610,291 shares of the business's stock in a transaction dated Wednesday, July 8th. The shares were bought at an average price of $11.82 per share, with a total value of $7,213,639.62. Following the transaction, the insider directly owned 610,291 shares in the company, valued at approximately $7,213,639.62. The trade was a ∞ increase in their position. The SEC filing for this purchase provides additional information. In the last ninety days, insiders have bought 1,833,380 shares of company stock worth $21,960,909 and have sold 3,529,696 shares worth $33,002,807. 25.52% of the stock is owned by insiders.

Hedge Funds Weigh In On Netskope

Hedge funds and other institutional investors have recently modified their holdings of the stock. Wasatch Advisors LP purchased a new position in shares of Netskope during the 2nd quarter valued at $25,107,000. Principal Financial Group Inc. boosted 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 valued at $21,628,000 after purchasing an additional 608,355 shares during the last quarter. New York Life Insurance Co. purchased a new position in Netskope in the second quarter valued at about $11,325,580. Bank of New York Mellon Corp increased its position in Netskope by 1,381.8% in the 1st quarter. Bank of New York Mellon Corp now owns 475,918 shares of the company's stock worth $4,041,000 after purchasing an additional 443,800 shares during the last quarter. Finally, Granahan Investment Management LLC raised its stake in shares of Netskope by 81.6% during the 1st quarter. Granahan Investment Management LLC now owns 367,578 shares of the company's stock worth $3,121,000 after purchasing an additional 165,117 shares in the last quarter.

About Netskope

We are redefining security and networking for the era of cloud and AI. The cloud and AI have completely revolutionized work. We are more dispersed, more productive, and more automated than ever before, and the rate of change is only accelerating. Not since the internet has there been such a transformative tectonic shift. But, with it has come collateral damage-traditional security and networking are now broken. We founded Netskope to address this revolution. We built Netskope One, our unified, cloud-native platform from the ground up to solve the challenge of securing and accelerating the digital interactions of enterprises in this new era.

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