Cloudflare (NYSE:NET) Trading 6.5% Higher – Should You Buy?

Cloudflare, Inc. (NYSE:NET) shot up 6.5% during trading on Thursday . The stock traded as high as $102.91 and last traded at $102.76. 1,055,138 shares changed hands during mid-day trading, a decline of 67% from the average session volume of 3,167,211 shares. The stock had previously closed at $96.47.

Analyst Upgrades and Downgrades

Several brokerages have commented on NET. Wells Fargo & Company lifted their price target on Cloudflare from $105.00 to $110.00 and gave the stock an “overweight” rating in a research report on Friday, November 8th. Scotiabank lifted their price objective on Cloudflare from $85.00 to $87.00 and gave the company a “sector perform” rating in a research report on Friday, November 8th. Mizuho boosted their target price on Cloudflare from $92.00 to $105.00 and gave the stock a “neutral” rating in a research report on Thursday, October 17th. Robert W. Baird boosted their target price on Cloudflare from $94.00 to $100.00 and gave the stock an “outperform” rating in a research report on Friday, August 2nd. Finally, BNP Paribas started coverage on Cloudflare in a research report on Tuesday, October 8th. They set an “underperform” rating and a $65.00 target price for the company. Four analysts have rated the stock with a sell rating, twelve have assigned a hold rating and ten have issued a buy rating to the company’s stock. According to data from MarketBeat.com, Cloudflare has a consensus rating of “Hold” and a consensus price target of $92.88.

Cloudflare Price Performance

The company has a market capitalization of $35.69 billion, a P/E ratio of -395.23 and a beta of 1.10. The firm’s fifty day moving average is $87.19 and its 200 day moving average is $81.07. The company has a debt-to-equity ratio of 1.32, a quick ratio of 3.37 and a current ratio of 3.37.

Cloudflare (NYSE:NET) last released its quarterly earnings data on Thursday, November 7th. The company reported ($0.03) earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of ($0.03). Cloudflare had a negative net margin of 5.97% and a negative return on equity of 7.18%. The firm had revenue of $430.08 million for the quarter, compared to the consensus estimate of $423.65 million. As a group, analysts predict that Cloudflare, Inc. will post -0.11 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Cloudflare news, COO Michelle Zatlyn sold 12,820 shares of Cloudflare stock in a transaction on Monday, September 9th. The shares were sold at an average price of $77.13, for a total value of $988,806.60. Following the completion of the transaction, the chief operating officer now owns 192,177 shares of the company’s stock, valued at approximately $14,822,612.01. The trade was a 6.25 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Thomas J. Seifert sold 28,635 shares of the business’s stock in a transaction dated Tuesday, November 19th. The stock was sold at an average price of $95.03, for a total transaction of $2,721,184.05. Following the sale, the chief financial officer now directly owns 252,869 shares of the company’s stock, valued at $24,030,141.07. This represents a 10.17 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 546,194 shares of company stock valued at $46,804,995. Insiders own 12.83% of the company’s stock.

Institutional Trading of Cloudflare

A number of institutional investors and hedge funds have recently modified their holdings of NET. Allspring Global Investments Holdings LLC increased its stake 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. Acadian Asset Management LLC boosted its position in Cloudflare by 47.3% during the first quarter. Acadian Asset Management LLC now owns 12,397 shares of the company’s stock worth $1,196,000 after acquiring an additional 3,980 shares during the last quarter. O Shaughnessy Asset Management LLC boosted its position in Cloudflare by 22.3% during the first quarter. O Shaughnessy Asset Management LLC now owns 10,607 shares of the company’s stock worth $1,027,000 after acquiring an additional 1,933 shares during the last quarter. UniSuper Management Pty Ltd boosted its position in Cloudflare by 100.0% during the first quarter. UniSuper Management Pty Ltd now owns 4,200 shares of the company’s stock worth $407,000 after acquiring an additional 2,100 shares during the last quarter. Finally, Crewe Advisors LLC acquired a new position in Cloudflare during the first quarter worth about $73,000. Hedge funds and other institutional investors own 82.68% of the company’s stock.

Cloudflare Company Profile

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.