Netskope (NASDAQ:NTSK) Shares Down 7.3% – Here’s What Happened

Netskope Inc. (NASDAQ:NTSK) fell 7.3% on Friday. The company traded as low as $19.08 and last traded at $18.9560. 1,749,292 shares traded hands during mid-day trading, a decline of 65% from the average daily volume of 4,999,576 shares. The stock had previously closed at $20.45.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on NTSK shares. Robert W. Baird raised their price target on shares of Netskope from $18.00 to $20.00 and gave the company an “outperform” rating in a report on Thursday, September 3rd. JPMorgan Chase & Co. increased their price objective on Netskope from $16.00 to $18.00 and gave the company an “overweight” rating in a research report on Thursday, September 3rd. Piper Sandler lifted their target price on Netskope from $18.00 to $20.00 and gave the company an “overweight” rating in a research note on Thursday, September 3rd. Weiss Ratings reissued a “sell (e+)” rating on shares of Netskope in a research note on Friday, October 2nd. Finally, Royal Bank Of Canada upped their price target on Netskope from $18.00 to $20.00 and gave the company an “outperform” rating in a research note on Thursday, September 3rd. One analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $18.75.

Netskope Trading Down 7.5%

The stock has a market capitalization of $7.73 billion and a P/E ratio of -7.41. The company has a debt-to-equity ratio of 4.45, a current ratio of 2.01 and a quick ratio of 2.00. The business’s 50 day simple moving average is $16.58 and its 200-day simple moving average is $12.86.

Netskope (NASDAQ:NTSK) last issued 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. The company 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 forecast that Netskope Inc. will post -0.82 EPS for the current year.

Insider Activity

In related news, major shareholder Lightspeed Venture Partners Se sold 10,621 shares of Netskope 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 25.52% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Netskope

Several hedge funds have recently added to or reduced their stakes in NTSK. Wasatch Advisors LP acquired a new position in Netskope in the second quarter valued at about $25,107,000. Principal Financial Group Inc. increased 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 last quarter. New York Life Insurance Co. bought a new stake in shares of Netskope in the 2nd quarter valued at about $11,325,580. Weiss Asset Management LP bought a new stake in shares of Netskope in the 1st quarter valued at about $8,957,000. Finally, Stephens Investment Management Group LLC raised its position in shares of Netskope by 117.5% in the 1st quarter. Stephens Investment Management Group LLC now owns 977,786 shares of the company’s stock valued at $8,301,000 after acquiring an additional 528,164 shares during the period.

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.