Netskope shares declined to their lowest level in the past year during mid-day trading on Friday, with over 302,000 shares exchanging hands. This new trough underscores growing investor concern over valuation and short-term momentum as the security software company continues to navigate a competitive landscape.

Despite recent weakness, 20 Wall Street analysts cover Netskope, including one strong buy, 17 buys, one hold and one sell. The consensus rating stands at Moderate Buy, supported by a consensus target price of 27.18 per share—implying roughly 60% upside from current levels. Recent notes from Citigroup, Piper Sandler, JMP Securities, Mizuho and JPMorgan Chase & Co. have reaffirmed or initiated outperform/overweight stances, with price targets ranging between 25.00 and 27.00 per share.

In its latest quarterly report, Netskope delivered adjusted EPS of negative 0.10, outpacing the consensus loss of 0.25 per share by 0.15. Revenue rose 33.0% year-over-year to 184.17 million, beating analyst estimates of 175.81 million. The results reflect continued strength in subscription bookings and upsells within its unified, cloud-native security platform, as well as improving operational leverage.

Institutional investors have been active in the third quarter, with Sandia Investment Management adding a new stake valued at approximately 227,000; Freestone Grove Partners acquiring about 4.5 million; Burkehill Global Management investing around 5.7 million; Davidson Kempner Capital committing roughly 11.8 million; and Balyasny Asset Management deploying about 12.5 million. This wave of inflows suggests confidence from hedge funds and asset managers in Netskope’s long-term growth trajectory.