Cloudflare (NYSE:NET) Releases Quarterly Earnings Results, Beats Estimates By $0.01 EPS

Cloudflare (NYSE:NET) posted its earnings results on Tuesday. The company reported $0.28 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.27 by $0.01, FiscalAI reports. Cloudflare had a negative net margin of 5.12% and a negative return on equity of 6.54%. The company had revenue of $614.51 million during the quarter, compared to analysts’ expectations of $591.67 million.

Cloudflare Stock Performance

NYSE NET traded up $6.69 on Tuesday, hitting $180.44. 9,957,142 shares of the stock traded hands, compared to its average volume of 4,661,747. The company has a debt-to-equity ratio of 1.46, a quick ratio of 2.04 and a current ratio of 2.04. The business’s fifty day moving average is $191.44 and its two-hundred day moving average is $205.16. Cloudflare has a 12 month low of $89.42 and a 12 month high of $260.00. The firm has a market capitalization of $63.20 billion, a price-to-earnings ratio of -601.47, a PEG ratio of 150.14 and a beta of 1.97.

Wall Street Analyst Weigh In

Several analysts have recently issued reports on NET shares. Stifel Nicolaus increased their target price on Cloudflare from $230.00 to $275.00 and gave the stock a “buy” rating in a report on Friday, October 31st. Jefferies Financial Group set a $185.00 price objective on Cloudflare in a research report on Thursday, February 5th. Truist Financial set a $225.00 price target on Cloudflare in a research report on Tuesday, January 20th. BTIG Research raised shares of Cloudflare from a “neutral” rating to a “buy” rating and set a $199.00 target price for the company in a research note on Wednesday, February 4th. Finally, Barclays initiated coverage on Cloudflare in a research note on Tuesday, December 2nd. They issued an “overweight” rating and a $235.00 price target on the stock. One research analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, nine have given a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, Cloudflare presently has a consensus rating of “Moderate Buy” and a consensus price target of $234.11.

Insider Buying and Selling

In other news, CFO Thomas J. Seifert sold 10,000 shares of the business’s stock in a transaction that occurred on Tuesday, January 20th. The shares were sold at an average price of $178.37, for a total value of $1,783,700.00. Following the sale, the chief financial officer owned 137,486 shares of the company’s stock, valued at $24,523,377.82. The trade was a 6.78% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CEO Matthew Prince sold 52,384 shares of the stock in a transaction on Thursday, January 8th. The stock was sold at an average price of $189.47, for a total value of $9,925,196.48. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 630,827 shares of company stock worth $124,436,992 in the last quarter. 10.89% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of NET. Woodline Partners LP increased its holdings in shares of Cloudflare by 1,000.1% in the third quarter. Woodline Partners LP now owns 183,206 shares of the company’s stock worth $39,314,000 after purchasing an additional 166,552 shares during the period. National Bank of Canada FI boosted its position in shares of Cloudflare by 1,552.7% during the 3rd quarter. National Bank of Canada FI now owns 144,218 shares of the company’s stock valued at $30,948,000 after acquiring an additional 135,492 shares during the last quarter. AQR Capital Management LLC grew its stake in Cloudflare by 34.5% in the 2nd quarter. AQR Capital Management LLC now owns 461,051 shares of the company’s stock worth $89,951,000 after buying an additional 118,234 shares in the last quarter. Sei Investments Co. grew its position in Cloudflare by 40.1% in the second quarter. Sei Investments Co. now owns 329,036 shares of the company’s stock worth $64,432,000 after acquiring an additional 94,112 shares in the last quarter. Finally, Marshall Wace LLP increased its stake in Cloudflare by 21.6% in the third quarter. Marshall Wace LLP now owns 526,781 shares of the company’s stock valued at $113,042,000 after acquiring an additional 93,729 shares during the last quarter. 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.