Cloudflare (NYSE:NET) Trading Down 5.5% After Insider Selling

Cloudflare, Inc. (NYSE:NET)’s stock price fell 5.5% during mid-day trading on Wednesday following insider selling activity. The stock traded as low as $194.16 and last traded at $194.5510. 2,347,362 shares changed hands during trading, a decline of 37% from the average session volume of 3,712,588 shares. The stock had previously closed at $205.95.

Specifically, Director Carl Ledbetter sold 15,000 shares of Cloudflare stock in a transaction that occurred on Tuesday, January 27th. The shares were sold at an average price of $211.16, for a total value of $3,167,400.00. Following the completion of the transaction, the director owned 953,073 shares in the company, valued at approximately $201,250,894.68. The trade was a 1.55% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink.

Analyst Upgrades and Downgrades

NET has been the subject of a number of analyst reports. Wall Street Zen upgraded shares of Cloudflare from a “hold” rating to a “buy” rating in a research note on Saturday, November 8th. Needham & Company LLC upped their price objective on shares of Cloudflare from $240.00 to $285.00 and gave the company a “buy” rating in a research note on Friday, October 31st. Mizuho cut their target price on Cloudflare from $280.00 to $255.00 and set an “outperform” rating on the stock in a research report on Wednesday, January 21st. KeyCorp upped their target price on Cloudflare from $235.00 to $300.00 and gave the company an “overweight” rating in a research report on Friday, October 31st. Finally, Wells Fargo & Company raised their target price on shares of Cloudflare from $250.00 to $265.00 and gave the stock an “overweight” rating in a research report on Friday, October 31st. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, ten have issued a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, Cloudflare has an average rating of “Moderate Buy” and a consensus target price of $232.48.

Cloudflare Trading Down 1.8%

The stock has a 50 day moving average of $194.53 and a two-hundred day moving average of $205.81. The company has a quick ratio of 2.04, a current ratio of 2.04 and a debt-to-equity ratio of 1.46.

Cloudflare (NYSE:NET) last announced its quarterly earnings results on Thursday, October 30th. The company reported $0.27 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.23 by $0.04. Cloudflare had a negative net margin of 5.12% and a negative return on equity of 6.54%. The business had revenue of $562.03 million during the quarter, compared to the consensus estimate of $544.65 million. During the same quarter last year, the firm posted $0.20 EPS. The business’s revenue was up 30.7% compared to the same quarter last year. On average, equities analysts anticipate that Cloudflare, Inc. will post -0.11 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Cloudflare

Several institutional investors have recently modified their holdings of NET. Physician Wealth Advisors Inc. grew its position in Cloudflare by 693.3% during the third quarter. Physician Wealth Advisors Inc. now owns 119 shares of the company’s stock valued at $26,000 after acquiring an additional 104 shares during the period. Wiser Advisor Group LLC purchased a new position in Cloudflare in the third quarter valued at approximately $26,000. Westside Investment Management Inc. lifted its position in Cloudflare by 100.0% during the third quarter. Westside Investment Management Inc. now owns 130 shares of the company’s stock valued at $28,000 after buying an additional 65 shares in the last quarter. ORG Wealth Partners LLC grew its stake in Cloudflare by 101.4% during the third quarter. ORG Wealth Partners LLC now owns 139 shares of the company’s stock worth $30,000 after buying an additional 70 shares during the period. Finally, Wexford Capital LP acquired a new stake in shares of Cloudflare in the third quarter worth $30,000. Hedge funds and other institutional investors own 82.68% of the company’s stock.

About Cloudflare

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.