Cloudflare (NYSE:NET) Stock Price Up 7.9% – Should You Buy?

Cloudflare, Inc. (NYSE:NET)’s share price rose 7.9% during mid-day trading on Wednesday . The stock traded as high as $98.14 and last traded at $98.11. Approximately 1,993,518 shares changed hands during mid-day trading, a decline of 37% from the average daily volume of 3,162,993 shares. The stock had previously closed at $90.91.

Analyst Upgrades and Downgrades

NET has been the subject of a number of research analyst reports. Susquehanna lifted their price objective on shares of Cloudflare from $80.00 to $85.00 and gave the company a “neutral” rating in a report on Monday, August 5th. Royal Bank of Canada lifted their price objective on shares of Cloudflare from $90.00 to $99.00 and gave the stock an “outperform” rating in a research report on Friday, August 2nd. Guggenheim lifted their price objective on shares of Cloudflare from $50.00 to $57.00 and gave the stock a “sell” rating in a research report on Friday, August 2nd. Mizuho lifted their price objective on shares of Cloudflare from $92.00 to $105.00 and gave the stock a “neutral” rating in a research report on Thursday, October 17th. Finally, UBS Group boosted their target price on shares of Cloudflare from $88.00 to $95.00 and gave the stock a “neutral” rating in a research report on Friday, November 8th. Four research analysts have rated the stock with a sell rating, twelve have given a hold rating and ten have issued a buy rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $92.88.

Cloudflare Stock Down 2.3 %

The company has a current ratio of 3.37, a quick ratio of 3.37 and a debt-to-equity ratio of 1.32. The stock’s fifty day moving average price is $85.57 and its 200-day moving average price is $80.80.

Cloudflare (NYSE:NET) last announced 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 during the quarter, compared to analyst estimates of $423.65 million. Equities research analysts anticipate that Cloudflare, Inc. will post -0.12 EPS for the current fiscal year.

Insider Buying and Selling at Cloudflare

In other Cloudflare news, CEO Matthew Prince sold 52,384 shares of the stock in a transaction that occurred on Tuesday, October 15th. The shares were sold at an average price of $93.95, for a total value of $4,921,476.80. Following the transaction, the chief executive officer now directly owns 10,761 shares in the company, valued at $1,010,995.95. This represents a 82.96 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Thomas J. Seifert sold 15,000 shares of the stock in a transaction that occurred on Friday, October 18th. The shares were sold at an average price of $90.88, for a total transaction of $1,363,200.00. Following the completion of the transaction, the chief financial officer now owns 281,403 shares in the company, valued at $25,573,904.64. This represents a 5.06 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 473,548 shares of company stock valued at $39,451,976 over the last 90 days. 12.83% of the stock is owned by insiders.

Hedge Funds Weigh In On Cloudflare

Hedge funds have recently modified their holdings of the business. Allspring Global Investments Holdings LLC lifted its holdings in Cloudflare by 595.0% in the first quarter. Allspring Global Investments Holdings LLC now owns 278 shares of the company’s stock valued at $27,000 after acquiring an additional 238 shares during the period. CVA Family Office LLC lifted its holdings in Cloudflare by 121.3% in the third quarter. CVA Family Office LLC now owns 312 shares of the company’s stock valued at $25,000 after acquiring an additional 171 shares during the period. Quarry LP lifted its holdings in Cloudflare by 73.4% in the second quarter. Quarry LP now owns 345 shares of the company’s stock valued at $29,000 after acquiring an additional 146 shares during the period. Thurston Springer Miller Herd & Titak Inc. acquired a new stake in Cloudflare in the second quarter valued at $29,000. Finally, Versant Capital Management Inc lifted its holdings in Cloudflare by 1,202.9% in the second quarter. Versant Capital Management Inc now owns 456 shares of the company’s stock valued at $38,000 after acquiring an additional 421 shares during the period. 82.68% of the stock is currently owned by hedge funds and other institutional investors.

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.