Netskope (NASDAQ:NTSK) Trading Down 5.6% – Time to Sell?

Netskope Inc. (NASDAQ:NTSK) shares traded down 5.6% on Friday . The stock traded as low as $14.43 and last traded at $14.2560. Approximately 1,137,669 shares changed hands during mid-day 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 research firms recently commented on NTSK. Oppenheimer raised their price objective on shares of Netskope from $16.00 to $19.00 and gave the stock an “outperform” rating in a report on Wednesday, August 19th. Deutsche Bank Aktiengesellschaft set a $17.00 price target on Netskope in a research report on Monday, August 17th. Weiss Ratings restated a “sell (e+)” rating on shares of Netskope in a research note on Wednesday, July 8th. BMO Capital Markets upped their price target on Netskope from $13.00 to $18.00 and gave the company an “outperform” rating in a research report on Thursday, September 3rd. Finally, Rosenblatt Securities increased their price target on shares of Netskope from $18.00 to $19.00 and gave the stock a “buy” rating in a report on Thursday, September 3rd. Sixteen investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $19.03.

Netskope Stock Performance

The stock has a market cap of $5.82 billion and a P/E ratio of -5.64. The company has a 50 day simple moving average of $13.70 and a 200-day simple moving average of $11.39. The company has a debt-to-equity ratio of 4.45, a current ratio of 2.01 and a quick ratio of 2.00.

Netskope (NASDAQ:NTSK) last posted its quarterly earnings results on Wednesday, September 2nd. The company reported ($0.03) EPS for the quarter, topping the consensus estimate of ($0.26) by $0.23. The firm 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. On average, equities analysts expect that Netskope Inc. will post -0.82 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Netskope news, major shareholder Lightspeed Venture Partners Se sold 336,173 shares of Netskope stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $9.00, for a total value of $3,025,557.00. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, major shareholder Iconiq Strategic Partners Viii purchased 610,291 shares of the company’s stock in a transaction on Wednesday, July 8th. The shares were purchased at an average cost 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 $7,213,639.62. This trade represents a ∞ increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last 90 days, insiders have acquired 1,833,380 shares of company stock valued at $21,960,909 and have sold 902,042 shares valued at $8,854,667. 25.52% of the stock is owned by insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Wasatch Advisors LP bought a new stake in shares of Netskope in the second quarter worth $25,107,000. Principal Financial Group Inc. increased its stake in Netskope by 31.4% in the 1st quarter. Principal Financial Group Inc. now owns 2,547,468 shares of the company’s stock worth $21,628,000 after buying an additional 608,355 shares in the last quarter. New York Life Insurance Co. bought a new position in Netskope in the 2nd quarter worth approximately $11,325,580. Bank of New York Mellon Corp lifted its stake 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 in the last quarter. Finally, Granahan Investment Management LLC raised its holdings 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 acquiring an additional 165,117 shares in the last quarter.

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.