Short Interest in Netskope Inc. (NASDAQ:NTSK) Grows By 76.4%

Key Points

• Short interest in Netskope surged 76.4% in June, rising to 26.9 million shares by June 30 and representing 8.9% of the stock, with a short-interest ratio of 3.1 days.
• Netskope reported better-than-expected quarterly results, posting an EPS loss of $0.06 versus a $0.07 estimate and revenue of $201.6 million, up 27.8% year over year.
• Analyst sentiment remains mostly positive despite mixed actions, with a Moderate Buy consensus and average price target of $17.21, while recent insider activity showed both significant selling and a notable purchase by Iconiq Strategic Partners.

Netskope Inc. (NASDAQ:NTSK - Get Free Report) saw a significant growth in short interest in June. As of June 30th, there was short interest totaling 26,867,322 shares, a growth of 76.4% from the June 15th total of 15,229,356 shares. Currently, 8.9% of the company's stock are sold short. Based on an average trading volume of 8,738,665 shares, the short-interest ratio is presently 3.1 days.

Netskope Stock Performance

Shares of Netskope stock opened at $13.50 on Friday. The company has a market capitalization of $5.45 billion and a PE ratio of -67.50. The company has a 50-day simple moving average of $10.97 and a two-hundred day simple moving average of $11.59. Netskope has a one year low of $7.66 and a one year high of $27.99. The company has a debt-to-equity ratio of 4.06, a quick ratio of 2.16 and a current ratio of 2.17.

Netskope (NASDAQ:NTSK - Get Free Report) last issued its quarterly earnings data on Wednesday, June 3rd. The company reported ($0.06) EPS for the quarter, beating the consensus estimate of ($0.07) by $0.01. The business had revenue of $201.59 million for the quarter. The firm's revenue for the quarter was up 27.8% on a year-over-year basis. Netskope has set its Q2 2027 guidance at -0.070--0.060 EPS and its FY 2027 guidance at -0.180--0.180 EPS. Research analysts expect that Netskope will post -0.88 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

Several research firms have weighed in on NTSK. Weiss Ratings reiterated a "sell (e+)" rating on shares of Netskope in a research report on Wednesday, July 8th. KeyCorp upped their price target on shares of Netskope from $14.00 to $16.00 and gave the company an "overweight" rating in a research note on Thursday. Morgan Stanley reduced their target price on Netskope from $18.00 to $14.00 and set an "overweight" rating on the stock in a research note on Thursday, June 4th. BMO Capital Markets lowered their price objective on shares of Netskope from $14.00 to $13.00 and set an "outperform" rating for the company in a research report on Thursday, June 4th. Finally, Robert W. Baird dropped their target price on shares of Netskope from $20.00 to $16.00 and set an "outperform" rating on the stock in a research note on Thursday, June 4th. One analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Netskope has a consensus rating of "Moderate Buy" and a consensus price target of $17.21.

Insider Activity

In related news, Director Arif Janmohamed sold 336,173 shares of the business's stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $9.00, for a total value of $3,025,557.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, major shareholder Iconiq Strategic Partners Viii bought 64,771 shares of the business's stock in a transaction on Monday, July 13th. The shares were acquired at an average price of $12.42 per share, for a total transaction of $804,455.82. Following the completion of the purchase, the insider owned 916,690 shares in the company, valued at approximately $11,385,289.80. The trade was a 7.60% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last three months, insiders purchased 1,833,380 shares of company stock worth $21,960,909 and sold 3,529,696 shares worth $33,002,807. Corporate insiders own 25.52% of the company's stock.

Institutional Trading of Netskope

Several large investors have recently added to or reduced their stakes in the company. SBI Securities Co. Ltd. boosted its holdings in shares of Netskope by 32.6% in the 4th quarter. SBI Securities Co. Ltd. now owns 5,164 shares of the company's stock valued at $91,000 after acquiring an additional 1,270 shares during the last quarter. Farther Finance Advisors LLC purchased a new stake in Netskope in the fourth quarter valued at $25,000. Quarry LP acquired a new stake in Netskope during the 3rd quarter worth about $41,000. Triumph Capital Management lifted its holdings in Netskope by 380.0% in the fourth 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. Finally, Assetmark Inc. grew its stake in shares of Netskope by 60.5% during the 4th quarter. Assetmark Inc. now owns 5,879 shares of the company's stock worth $103,000 after purchasing an additional 2,216 shares during the period.

Netskope Company Profile

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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