Netskope (NASDAQ:NTSK) Shares Gap Down After Analyst Downgrade

Netskope Inc. (NASDAQ:NTSK)’s share price gapped down before the market opened on Thursday after Royal Bank Of Canada lowered their price target on the stock from $14.00 to $13.00. The stock had previously closed at $12.40, but opened at $9.60. Royal Bank Of Canada currently has an outperform rating on the stock. Netskope shares last traded at $10.1930, with a volume of 3,539,885 shares trading hands.

Several other research analysts have also recently weighed in on the stock. Morgan Stanley dropped their price target on shares of Netskope from $27.00 to $18.00 and set an “overweight” rating on the stock in a research note on Thursday, March 12th. Deutsche Bank Aktiengesellschaft cut their price target on Netskope from $22.00 to $16.00 and set a “buy” rating for the company in a report on Thursday, March 12th. TD Cowen reaffirmed a “buy” rating on shares of Netskope in a research note on Thursday. Citizens Jmp cut their price objective on Netskope from $23.00 to $17.00 and set a “market outperform” rating for the company in a research note on Friday, May 1st. Finally, BMO Capital Markets decreased their target price on shares of Netskope from $14.00 to $13.00 and set an “outperform” rating on the stock in a research note on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $17.26.

Key Stories Impacting Netskope

Here are the key news stories impacting Netskope this week:

• Positive Sentiment: Netskope reported fiscal Q1 2027 results with EPS of -$0.06, beating expectations of -$0.07, and revenue rose 27.8% year over year to $201.59 million. Netskope Announces Strong Fiscal First Quarter 2027 Financial Results
• Positive Sentiment: The company raised guidance for both Q2 and full-year fiscal 2027, with revenue outlooks above consensus and EPS guidance slightly better than expected, signaling continued growth momentum. Netskope Announces Strong Fiscal First Quarter 2027 Financial Results
• Positive Sentiment: Netskope announced new AI-related initiatives, including AI Command Center and participation in Anthropic’s Project Glasswing, which could strengthen its product story in a hot enterprise AI security market. Netskope Joins Anthropic’s Project Glasswing
• Neutral Sentiment: Robert W. Baird cut its price target to $16 from $20 while reiterating an outperform rating, suggesting analysts still see upside despite lower near-term expectations. Benzinga
• Neutral Sentiment: BTIG Research lowered its target to $14 from $17 and maintained a buy rating, reflecting a more cautious valuation view but no change in its constructive stance. Benzinga

Institutional Investors Weigh In On Netskope

Several institutional investors and hedge funds have recently modified their holdings of NTSK. Farther Finance Advisors LLC purchased a new position in shares of Netskope in the fourth quarter worth $25,000. Quarry LP bought a new stake in Netskope in the 3rd quarter valued at $41,000. Triumph Capital Management increased its holdings in Netskope by 380.0% in 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 last quarter. Wells Fargo & Company MN grew its position in shares of Netskope by 261.7% during 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 in the last quarter. Finally, Leonteq Securities AG purchased a new position in shares of Netskope during the fourth quarter valued at about $64,000.

Netskope Stock Down 17.5%

The company has a quick ratio of 2.12, a current ratio of 2.13 and a debt-to-equity ratio of 3.71. The stock has a market capitalization of $4.09 billion and a P/E ratio of -72.32. The company has a fifty day moving average price of $10.24 and a 200-day moving average price of $13.49.

Netskope (NASDAQ:NTSK) last released its quarterly earnings results on Wednesday, June 3rd. The company reported ($0.06) earnings per share for the quarter, beating the consensus estimate of ($0.07) by $0.01. The firm had revenue of $201.59 million for the quarter. Netskope’s revenue 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. As a group, research analysts forecast that Netskope Inc. will post -0.19 EPS for the current fiscal year.

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.