Cloudflare (NYSE:NET) Stock Price Up 1.5% – Should You Buy?

Cloudflare, Inc. (NYSE:NET)’s share price was up 1.5% on Thursday. The company traded as high as $322.61 and last traded at $319.6170. 3,455,747 shares traded hands during trading, a decline of 15% from the average daily volume of 4,086,462 shares. The stock had previously closed at $315.00.

Key Cloudflare News

Here’s some of the latest news about NET:

• Positive Sentiment: Coverage of the company’s third-quarter results highlights revenue growth of 39%, a revenue beat, raised fourth-quarter and full-year sales guidance, and an earlier target for GAAP profitability. Broad enterprise and AI-related demand were cited as drivers. Read More.
• Neutral Sentiment: Wall Street’s average recommendation is bullish, but analyst ratings can be overly optimistic and should not be treated as a standalone reason to invest. Read More.
• Negative Sentiment: Some coverage questions whether NET’s strong run has left the shares fully priced and flags the possibility of a further pullback, which could limit near-term upside even as fundamentals improve. Read More. · Read More.

Analyst Upgrades and Downgrades

Several brokerages have recently weighed in on NET. Susquehanna boosted their price objective on shares of Cloudflare from $200.00 to $300.00 and gave the stock a “neutral” rating in a research report on Monday, August 10th. TD Cowen downgraded shares of Cloudflare from a “buy” rating to a “hold” rating in a report on Tuesday, November 3rd. Weiss Ratings reiterated a “sell (d-)” rating on shares of Cloudflare in a research report on Thursday, October 15th. Craig Hallum upgraded shares of Cloudflare to a “buy” rating in a research report on Tuesday, November 3rd. Finally, Sanford C. Bernstein lifted their price target on shares of Cloudflare from $181.00 to $245.00 and gave the company a “market perform” rating in a research report on Thursday, October 29th. Twenty-six equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $338.48.

Cloudflare Stock Up 1.5%

The firm’s 50 day moving average is $318.72 and its 200-day moving average is $251.76. The firm has a market cap of $112.98 billion, a PE ratio of -470.02, a P/E/G ratio of 176.15 and a beta of 1.37. The company has a quick ratio of 3.80, a current ratio of 3.80 and a debt-to-equity ratio of 3.03.

Cloudflare (NYSE:NET) last issued its quarterly earnings results on Thursday, November 5th. The company reported $0.38 earnings per share for the quarter, beating the consensus estimate of $0.34 by $0.04. The company had revenue of $782.51 million during the quarter, compared to the consensus estimate of $737.16 million. Cloudflare had a negative return on equity of 6.05% and a negative net margin of 8.75%. Cloudflare’s revenue was up 39.2% on a year-over-year basis. During the same period in the previous year, the firm posted $0.27 EPS. As a group, equities research analysts expect that Cloudflare, Inc. will post 0.04 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Cloudflare news, CFO Thomas J. Seifert sold 12,500 shares of the business’s stock in a transaction dated Monday, October 19th. The stock was sold at an average price of $299.59, for a total transaction of $3,744,875.00. Following the transaction, the chief financial officer owned 104,958 shares in the company, valued at $31,444,367.22. The trade was a 10.64% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Michelle Zatlyn sold 33,003 shares of the business’s stock in a transaction on Wednesday, October 7th. The stock was sold at an average price of $348.29, for a total transaction of $11,494,614.87. Following the transaction, the insider directly owned 69,775 shares in the company, valued at approximately $24,301,934.75. The trade was a 32.11% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 256,537 shares of company stock valued at $78,750,901. Insiders own 10.66% of the company’s stock.

Institutional Investors Weigh In On Cloudflare

Several hedge funds and other institutional investors have recently bought and sold shares of NET. GK Wealth Management LLC acquired a new stake in shares of Cloudflare in the 3rd quarter valued at about $25,000. Cornerstone Financial Management LLC grew its stake in Cloudflare by 65.3% during the 2nd quarter. Cornerstone Financial Management LLC now owns 119 shares of the company’s stock worth $29,000 after buying an additional 47 shares during the last quarter. C M Bidwell & Associates Ltd. bought a new position in Cloudflare during the 2nd quarter worth $30,000. CX Institutional increased its position in Cloudflare by 49.4% in the second quarter. CX Institutional now owns 133 shares of the company’s stock worth $33,000 after buying an additional 44 shares during the period. Finally, Cape Investment Advisory Inc. bought a new stake in Cloudflare in the second quarter valued at $33,000. 82.68% of the stock is currently owned by hedge funds and other institutional investors.

Cloudflare Company Profile

Cloudflare, Inc. provides cloud-based services that help businesses and other organizations protect, connect and improve the performance of websites, applications and networks. Its global network delivers services including content delivery, domain name system management, and protection against distributed denial-of-service attacks and other cyber threats. The company also offers web application security, bot management and Zero Trust services for securing access to applications and internal networks.