Cloudflare (NYSE:NET) Trading Down 8.8% – Time to Sell?

Shares of Cloudflare, Inc. (NYSE:NET) were down 8.8% during trading on Monday . The stock traded as low as $160.93 and last traded at $161.5140. Approximately 5,045,522 shares traded hands during mid-day trading, a decline of 4% from the average daily volume of 5,251,303 shares. The stock had previously closed at $177.14.

Wall Street Analyst Weigh In

Several analysts recently issued reports on NET shares. Royal Bank Of Canada increased their price target on shares of Cloudflare from $230.00 to $240.00 and gave the stock an “outperform” rating in a research report on Wednesday, February 11th. TD Cowen restated a “buy” rating on shares of Cloudflare in a research note on Tuesday, January 27th. Truist Financial set a $225.00 target price on Cloudflare in a report on Tuesday, January 20th. Susquehanna set a $190.00 price target on Cloudflare in a research note on Thursday, February 12th. Finally, Piper Sandler upped their price objective on Cloudflare from $220.00 to $222.00 and gave the stock a “neutral” rating in a research report on Wednesday, February 11th. One analyst has rated the stock with a Strong Buy rating, nineteen have given a Buy rating, seven have given a Hold rating and three have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $230.70.

Cloudflare Stock Down 9.7%

The company has a market capitalization of $56.04 billion, a price-to-earnings ratio of -551.63 and a beta of 1.97. The company has a debt-to-equity ratio of 1.46, a current ratio of 2.04 and a quick ratio of 2.04. The firm’s fifty day moving average price is $188.52 and its 200-day moving average price is $204.21.

Cloudflare (NYSE:NET) last issued its quarterly earnings data on Tuesday, February 10th. The company reported $0.28 earnings per share for the quarter, topping analysts’ consensus estimates of $0.27 by $0.01. Cloudflare had a negative return on equity of 7.40% and a negative net margin of 4.72%.The business had revenue of $614.51 million for the quarter, compared to analyst estimates of $591.67 million. During the same quarter in the previous year, the company posted $0.19 EPS. Cloudflare’s quarterly revenue was up 33.6% compared to the same quarter last year. Sell-side analysts expect that Cloudflare, Inc. will post -0.11 earnings per share for the current fiscal year.

Insider Activity at Cloudflare

In other news, insider Michelle Zatlyn sold 25,641 shares of the company’s stock in a transaction that occurred on Thursday, January 15th. The stock was sold at an average price of $190.05, for a total value of $4,873,072.05. Following the completion of the transaction, the insider owned 24,555 shares of the company’s stock, valued at $4,666,677.75. This represents a 51.08% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, CFO Thomas J. Seifert sold 10,000 shares of the firm’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 transaction of $1,783,700.00. Following the completion of the transaction, the chief financial officer owned 137,486 shares of the company’s stock, valued at approximately $24,523,377.82. This trade represents a 6.78% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 378,093 shares of company stock valued at $74,578,759. Corporate insiders own 10.89% of the company’s stock.

Institutional Trading of Cloudflare

Several institutional investors have recently modified their holdings of NET. Vanguard Group Inc. raised its position in Cloudflare by 0.3% during the 4th quarter. Vanguard Group Inc. now owns 32,407,646 shares of the company’s stock worth $6,389,167,000 after purchasing an additional 90,397 shares during the last quarter. Geode Capital Management LLC increased its stake in shares of Cloudflare by 4.2% in the fourth quarter. Geode Capital Management LLC now owns 6,018,175 shares of the company’s stock valued at $1,184,044,000 after buying an additional 241,981 shares during the period. First Trust Advisors LP raised its position in shares of Cloudflare by 1.6% during the fourth quarter. First Trust Advisors LP now owns 4,019,157 shares of the company’s stock worth $792,377,000 after acquiring an additional 63,198 shares during the last quarter. Invesco Ltd. raised its position in shares of Cloudflare by 1.3% during the third quarter. Invesco Ltd. now owns 3,964,733 shares of the company’s stock worth $850,792,000 after acquiring an additional 49,485 shares during the last quarter. Finally, Norges Bank acquired a new position in shares of Cloudflare in the fourth quarter worth approximately $718,316,000. Institutional investors own 82.68% of the company’s stock.

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.