Netskope’s Quiet Period Ends, Analysts Set Price Targets

Netskope Inc. (NASDAQ:NTSK) will conclude its quiet period on October 28, 2023. The company had issued a total of 47,800,000 shares during its initial public offering (IPO) on September 18, 2023, raising approximately $908.2 million at an initial share price of $19.00. The quiet period restricts insiders and underwriters from publishing research reports due to regulations established by the Securities and Exchange Commission. The expiration of this period will likely lead to a flurry of research coverage from brokerages that participated in the IPO.

As the quiet period ends, several research analysts have already initiated coverage on Netskope. On October 13, 2023, Piper Sandler began its analysis with an “overweight” rating and a target price of $28.00. Similarly, Mizuho issued an “outperform” rating, setting a price target at $25.00. Morgan Stanley also offered an “overweight” rating, targeting $27.00, while Wells Fargo & Company matched Piper Sandler’s target of $28.00. Finally, BTIG Research designated a “buy” rating with a target price of $27.00.

Currently, a total of sixteen equities research analysts have rated Netskope stock as a Buy, while one has assigned a Hold rating. According to data from MarketBeat, the stock boasts an average rating of “Moderate Buy” and an average target price of $26.94.

Insider Activity and Institutional Investments

In related developments, William J.G. Griffith, a director at Netskope, acquired 2,000,000 shares of the company on September 19, 2023. The shares were purchased at an average price of $19.00, amounting to a total investment of $38,000,000. After this transaction, Griffith’s holdings increased to 11,238,175 shares, valued at approximately $213,525,325, reflecting a 21.65% increase in his position. This transaction has been disclosed in a filing with the Securities and Exchange Commission.

Additionally, there has been notable institutional interest in Netskope. Chicago Capital LLC recently acquired a new stake in the company during the third quarter, purchasing 90,462 shares valued at around $2,056,000, according to their latest 13F filing with the SEC.

Established in response to the evolving landscape of cloud and AI technologies, Netskope aims to redefine security and networking for modern enterprises. The company emphasizes its commitment to enhancing productivity and automation, marking a significant transformation in the technological realm.

As Netskope prepares for increased analyst engagement and market scrutiny, industry observers will be keenly watching how these developments will influence the company’s stock performance in the coming weeks.