Cloudflare (NYSE:NET) Shares Up 4.2% – Should You Buy?

Cloudflare, Inc. (NYSE:NET)’s stock price was up 4.2% during trading on Thursday . The stock traded as high as $89.68 and last traded at $88.50. Approximately 798,574 shares traded hands during mid-day trading, a decline of 75% from the average daily volume of 3,187,030 shares. The stock had previously closed at $84.95.

Wall Street Analysts Forecast Growth

NET has been the topic of a number of recent research reports. Royal Bank of Canada boosted their price objective on Cloudflare from $90.00 to $99.00 and gave the stock an “outperform” rating in a research note on Friday, August 2nd. Piper Sandler upped their price objective on shares of Cloudflare from $82.00 to $83.00 and gave the company a “neutral” rating in a report on Friday, August 2nd. Cantor Fitzgerald raised their price objective on shares of Cloudflare from $80.00 to $85.00 and gave the stock a “neutral” rating in a research report on Friday, August 2nd. Scotiabank began coverage on shares of Cloudflare in a report on Monday, July 8th. They issued a “sector perform” rating and a $85.00 target price on the stock. Finally, Robert W. Baird raised their price target on shares of Cloudflare from $94.00 to $100.00 and gave the stock an “outperform” rating in a report on Friday, August 2nd. Four investment analysts have rated the stock with a sell rating, twelve have assigned a hold rating and ten have assigned a buy rating to the company’s stock. Based on data from MarketBeat, Cloudflare presently has a consensus rating of “Hold” and a consensus price target of $91.20.

Cloudflare Price Performance

The company’s 50-day simple moving average is $80.88 and its 200 day simple moving average is $81.18. The company has a market cap of $31.95 billion, a PE ratio of -322.41 and a beta of 1.10. The company has a debt-to-equity ratio of 1.46, a quick ratio of 3.51 and a current ratio of 3.51.

Cloudflare (NYSE:NET) last released its earnings results on Thursday, August 1st. The company reported $0.20 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.14 by $0.06. Cloudflare had a negative return on equity of 8.54% and a negative net margin of 6.90%. The firm had revenue of $401.00 million during the quarter, compared to analyst estimates of $394.11 million. During the same period last year, the business posted ($0.12) earnings per share. Cloudflare’s revenue was up 30.0% compared to the same quarter last year. On average, sell-side analysts predict that Cloudflare, Inc. will post -0.13 earnings per share for the current fiscal year.

Insider Transactions at Cloudflare

In other Cloudflare news, CAO Janel Riley sold 3,495 shares of the stock in a transaction that occurred on Friday, August 16th. The shares were sold at an average price of $81.65, for a total value of $285,366.75. Following the sale, the chief accounting officer now directly owns 80,183 shares of the company’s stock, valued at approximately $6,546,941.95. This represents a 0.00 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. In related news, COO Michelle Zatlyn sold 25,640 shares of the company’s stock in a transaction that occurred on Wednesday, October 9th. The stock was sold at an average price of $82.60, for a total value of $2,117,864.00. Following the completion of the transaction, the chief operating officer now directly owns 192,177 shares of the company’s stock, valued at $15,873,820.20. This represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CAO Janel Riley sold 3,495 shares of the firm’s stock in a transaction that occurred on Friday, August 16th. The stock was sold at an average price of $81.65, for a total transaction of $285,366.75. Following the sale, the chief accounting officer now directly owns 80,183 shares in the company, valued at approximately $6,546,941.95. The trade was a 0.00 % decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 417,784 shares of company stock valued at $33,130,625. 12.83% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the stock. Riverview Trust Co acquired a new stake in Cloudflare during the 1st quarter worth $27,000. Allspring Global Investments Holdings LLC increased its position in shares of Cloudflare by 595.0% during the first quarter. Allspring Global Investments Holdings LLC now owns 278 shares of the company’s stock worth $27,000 after purchasing an additional 238 shares in the last quarter. CVA Family Office LLC increased its position in shares of Cloudflare by 121.3% during the third quarter. CVA Family Office LLC now owns 312 shares of the company’s stock worth $25,000 after purchasing an additional 171 shares in the last quarter. Quarry LP lifted its holdings in shares of Cloudflare by 73.4% in the 2nd quarter. Quarry LP now owns 345 shares of the company’s stock valued at $29,000 after purchasing an additional 146 shares during the last quarter. Finally, Thurston Springer Miller Herd & Titak Inc. acquired a new stake in shares of Cloudflare in the 2nd quarter valued at about $29,000. Institutional investors and hedge funds own 82.68% of the company’s stock.

About Cloudflare

Cloudflare, Inc operates as a cloud services provider that delivers a range of services to businesses worldwide. The company provides an integrated cloud-based security solution to secure a range of combination of platforms, including public cloud, private cloud, on-premise, software-as-a-service applications, and IoT devices; and website and application security products comprising web application firewall, bot management, distributed denial of service, API gateways, SSL/TLS encryption, script management, security center, and rate limiting products.