Is Netskope Stock a Buy After Sapphire Ventures Purchased 5.7 Million Shares?
Key Points
Hedge fund Sapphire Ventures disclosed a new stake in Netskope, buying 5,672,579 shares with an estimated quarter-end position value of $48.16 million, reflecting both the purchase and changes in share price.
The transaction represented a 70.8% increase relative to the fund’s $99.45 million in 13F reportable assets.
Netskope now accounts for 48.43% of Sapphire Ventures’ 13F assets, making it the fund's top holding.
- 10 stocks we like better than Netskope ›
What happened
According to an SEC filing dated May 11, 2026, Sapphire Ventures, L.L.C. initiated a new position in Netskope (NASDAQ:NTSK) in the first quarter by acquiring 5,672,579 shares. The estimated value of this transaction is $70.40 million, calculated using the average closing share price during the first quarter of 2026. At quarter’s end, the position was valued at $48.16 million, reflecting market price movements during the reporting period.
What else to know
- This was a new position, with Netskope representing 48.43% of Sapphire Ventures’ 13F reportable assets after the trade.
- Top holdings after the filing:
- NASDAQ:NTSK: $48.16 million (48.4% of AUM)
- NASDAQ:BRZE: $39.33 million (39.5% of AUM)
- NASDAQ:KLTR: $9.74 million (9.8% of AUM)
- NYSE:PATH: $2.22 million (2.2% of AUM)
- As of May 11, 2026, Netskope shares closed at a price of $11.24.
- Netskope reported trailing twelve months revenue of $709 million and a net loss of $679.39 million through January 31, 2026.
- The position places Sapphire Ventures’ total reported 13F assets at $99.45 million across four positions.
Company Overview
| Metric | Value |
|---|---|
| Price (as of market close 2026-05-12) | $11.24 |
| Market Capitalization | $4.50 billion |
| Revenue (TTM) | $709.00 million |
| Net Income (TTM) | $ (679.39) million |
Company Snapshot
- Netskope offers a unified cloud-security platform, "Netskope One," providing data protection, secure access, threat prevention, and network optimization for SaaS, web, hybrid, and AI workloads.
- It operates primarily on a subscription-based model, delivering its security solutions as cloud services to enterprise customers.
- The company serves a global client base of large organizations seeking advanced cloud security and compliance for complex digital infrastructures.
Netskope, Inc. is a technology company specializing in cloud security solutions for enterprise clients. The company leverages a unified platform to address data protection, threat management, and secure access across cloud and web applications.
With a focus on scalable, subscription-based offerings, Netskope aims to deliver robust security and visibility for organizations navigating digital transformation and evolving cybersecurity threats.
What this transaction means for investors
The first quarter purchase of Netskope shares by Sapphire Ventures is noteworthy for a few reasons. The transaction represents a new stake, and it was so big, it catapulted Netskope to the hedge fund’s top holding.
Perhaps Sapphire Ventures saw an opportunity in Wall Street’s widespread sell-off of cybersecurity stocks in the first quarter of this year. After all, Netskope shares hit a 52-week low of $7.67 in Q1. This is a substantial drop from its $19 IPO price when the company went public last September.
Netskope is seeing strong business growth. It exited its 2026 fiscal year, ended Jan. 31, with a 32% year-over-year increase in sales to $709 million. Its gross profit also rose to 68% from 65% in fiscal 2025.
With the decline in its stock price, Netskope shares are attractively-priced. Its price-to-sales ratio of 3.5 is a significant reduction from the 14.7 seen around the time of its IPO. This makes now a good time to pick up shares.
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Robert Izquierdo has positions in UiPath. The Motley Fool has positions in and recommends Braze and UiPath. The Motley Fool has a disclosure policy.
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