Cloudflare (NYSE:NET) Updates Q2 2024 Earnings Guidance

Cloudflare (NYSE:NET) issued an update on its second quarter 2024 earnings guidance on Friday morning. The company provided earnings per share (EPS) guidance of 0.140-0.140 for the period, compared to the consensus estimate of 0.130. The company issued revenue guidance of $393.5 million-$394.5 million, compared to the consensus revenue estimate of $393.5 million. Cloudflare also updated its FY 2024 guidance to 0.600-0.610 EPS.

Cloudflare Price Performance

Shares of NYSE:NET traded down $0.11 during midday trading on Monday, hitting $74.29. The company’s stock had a trading volume of 6,576,970 shares, compared to its average volume of 3,961,452. The business’s 50 day simple moving average is $93.67 and its 200 day simple moving average is $83.75. The company has a debt-to-equity ratio of 1.61, a quick ratio of 3.51 and a current ratio of 3.51. The company has a market cap of $25.08 billion, a P/E ratio of -141.34 and a beta of 1.15. Cloudflare has a 12-month low of $44.60 and a 12-month high of $116.00.

Cloudflare (NYSE:NET) last posted its quarterly earnings results on Thursday, February 8th. The company reported ($0.06) earnings per share for the quarter, topping the consensus estimate of ($0.07) by $0.01. The firm had revenue of $362.47 million for the quarter, compared to the consensus estimate of $352.70 million. Cloudflare had a negative net margin of 13.10% and a negative return on equity of 12.78%. On average, analysts forecast that Cloudflare will post -0.2 EPS for the current year.

Analyst Ratings Changes

NET has been the topic of a number of analyst reports. Susquehanna reduced their target price on shares of Cloudflare from $115.00 to $80.00 and set a neutral rating on the stock in a research note on Monday. Needham & Company LLC reaffirmed a buy rating and set a $135.00 target price on shares of Cloudflare in a research note on Friday. Royal Bank of Canada lifted their target price on shares of Cloudflare from $95.00 to $108.00 and gave the stock an outperform rating in a research note on Friday, February 9th. DZ Bank downgraded shares of Cloudflare from a buy rating to a hold rating and set a $110.00 target price on the stock. in a research note on Tuesday, February 13th. Finally, Wells Fargo & Company reduced their target price on shares of Cloudflare from $125.00 to $105.00 and set an overweight rating on the stock in a research note on Friday. Four equities research analysts have rated the stock with a sell rating, ten have issued a hold rating and nine have issued a buy rating to the company. Based on data from MarketBeat.com, Cloudflare currently has an average rating of Hold and a consensus target price of $90.13.

Insider Buying and Selling

In related news, Director Carl Ledbetter sold 7,962 shares of Cloudflare stock in a transaction that occurred on Wednesday, February 7th. The shares were sold at an average price of $81.42, for a total value of $648,266.04. Following the completion of the transaction, the director now owns 1,446,957 shares in the company, valued at $117,811,238.94. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. In related news, CFO Thomas J. Seifert sold 15,000 shares of Cloudflare stock in a transaction that occurred on Friday, May 3rd. The shares were sold at an average price of $73.97, for a total value of $1,109,550.00. Following the completion of the transaction, the chief financial officer now owns 338,469 shares in the company, valued at $25,036,551.93. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Carl Ledbetter sold 7,962 shares of Cloudflare stock in a transaction that occurred on Wednesday, February 7th. The stock was sold at an average price of $81.42, for a total transaction of $648,266.04. Following the completion of the transaction, the director now owns 1,446,957 shares of the company’s stock, valued at approximately $117,811,238.94. The disclosure for this sale can be found here. Insiders sold 1,044,347 shares of company stock worth $101,703,776 over the last 90 days. 12.83% of the stock is owned by insiders.

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.