Cloudflare (NYSE:NET) Trading Up 6.2% – Time to Buy?

Cloudflare, Inc. (NYSE:NET)’s share price shot up 6.2% on Wednesday . The stock traded as high as $221.46 and last traded at $224.7140. 2,240,375 shares were traded during trading, a decline of 53% from the average session volume of 4,741,661 shares. The stock had previously closed at $211.52.

Analyst Ratings Changes

A number of research firms have recently issued reports on NET. Barclays lifted their target price on shares of Cloudflare from $235.00 to $250.00 and gave the company an “overweight” rating in a research note on Wednesday, February 11th. Morgan Stanley set a $245.00 price target on Cloudflare in a report on Wednesday, February 11th. Royal Bank Of Canada lifted their price objective on Cloudflare from $230.00 to $240.00 and gave the company an “outperform” rating in a research report on Wednesday, February 11th. Piper Sandler boosted their price objective on Cloudflare from $220.00 to $222.00 and gave the stock a “neutral” rating in a research note on Wednesday, February 11th. Finally, Truist Financial set a $225.00 target price on Cloudflare in a report on Tuesday, January 20th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, eight have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, Cloudflare has an average rating of “Moderate Buy” and an average price target of $233.38.

Cloudflare Stock Performance

The stock’s 50 day moving average is $185.89 and its two-hundred day moving average is $202.98. The firm has a market capitalization of $79.56 billion, a P/E ratio of -780.46 and a beta of 1.98. The company has a debt-to-equity ratio of 1.35, a current ratio of 1.98 and a quick ratio of 1.98.

Cloudflare (NYSE:NET) last released its earnings results on Tuesday, February 10th. The company reported $0.28 EPS for the quarter, topping analysts’ consensus estimates of $0.27 by $0.01. The firm had revenue of $614.51 million during the quarter, compared to analyst estimates of $591.67 million. Cloudflare had a negative net margin of 4.72% and a negative return on equity of 7.24%. The business’s quarterly revenue was up 33.6% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.19 EPS. As a group, equities analysts anticipate that Cloudflare, Inc. will post -0.11 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, insider Michelle Zatlyn sold 25,641 shares of the company’s stock in a transaction dated Thursday, March 5th. The stock was sold at an average price of $189.50, for a total value of $4,858,969.50. Following the completion of the sale, the insider owned 34,514 shares in the company, valued at approximately $6,540,403. This represents a 42.62% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, CEO Matthew Prince sold 52,384 shares of the company’s stock in a transaction dated Thursday, February 26th. The shares were sold at an average price of $173.78, for a total value of $9,103,291.52. Following the completion of the sale, the chief executive officer owned 22,911 shares of the company’s stock, valued at $3,981,473.58. This represents a 69.57% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 534,031 shares of company stock valued at $99,017,195 in the last three months. 10.89% of the stock is currently owned by company insiders.

Institutional Trading of Cloudflare

A number of institutional investors and hedge funds have recently modified their holdings of the stock. HM Payson & Co. acquired a new position in Cloudflare during the fourth quarter valued at approximately $25,000. Physician Wealth Advisors Inc. raised its holdings in Cloudflare by 693.3% in the third quarter. Physician Wealth Advisors Inc. now owns 119 shares of the company’s stock worth $26,000 after purchasing an additional 104 shares during the period. Wiser Advisor Group LLC acquired a new stake in Cloudflare in the third quarter worth $26,000. Westside Investment Management Inc. boosted its position in shares of Cloudflare by 100.0% during the third quarter. Westside Investment Management Inc. now owns 130 shares of the company’s stock worth $28,000 after purchasing an additional 65 shares in the last quarter. Finally, Twin Peaks Wealth Advisors LLC acquired a new position in shares of Cloudflare in the 2nd quarter valued at $29,000. 82.68% of the stock is owned by institutional investors.

Cloudflare Company Profile

Cloudflare, Inc is a global web infrastructure and security company that provides a suite of services designed to improve the performance, reliability and security of internet properties. Its core offerings include a content delivery network (CDN), distributed denial-of-service (DDoS) protection, managed DNS, and a web application firewall (WAF). Cloudflare also provides tools for bot management, SSL/TLS, load balancing and rate limiting to help organizations maintain uptime and protect web applications from attack.

In addition to traditional edge and security services, Cloudflare has expanded into edge computing and developer platforms.