Cloudflare (NYSE:NET) Shares Gap Up – Still a Buy?

Shares of Cloudflare, Inc. (NYSE:NET) gapped up before the market opened on Monday . The stock had previously closed at $99.83, but opened at $106.03. Cloudflare shares last traded at $107.60, with a volume of 1,627,016 shares changing hands.

Wall Street Analysts Forecast Growth

NET has been the subject of a number of research reports. Scotiabank lifted their target price on Cloudflare from $85.00 to $87.00 and gave the company a “sector perform” rating in a research note on Friday, November 8th. Mizuho increased their target price on Cloudflare from $92.00 to $105.00 and gave the stock a “neutral” rating in a research report on Thursday, October 17th. UBS Group boosted their price target on shares of Cloudflare from $88.00 to $95.00 and gave the company a “neutral” rating in a report on Friday, November 8th. Susquehanna upped their price target on shares of Cloudflare from $80.00 to $85.00 and gave the stock a “neutral” rating in a research report on Monday, August 5th. Finally, Morgan Stanley upgraded shares of Cloudflare from an “equal weight” rating to an “overweight” rating and lifted their price objective for the company from $92.00 to $130.00 in a research report on Monday. Four investment analysts have rated the stock with a sell rating, eleven have issued a hold rating and eleven have assigned a buy rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $94.40.

Cloudflare Stock Performance

The company has a debt-to-equity ratio of 1.32, a current ratio of 3.37 and a quick ratio of 3.37. The firm has a market cap of $36.47 billion, a P/E ratio of -410.19 and a beta of 1.10. The stock’s 50 day moving average is $90.25 and its two-hundred day moving average is $82.52.

Cloudflare (NYSE:NET) last released its quarterly earnings data on Thursday, November 7th. The company reported ($0.03) earnings per share for the quarter, meeting the consensus estimate of ($0.03). The company had revenue of $430.08 million for the quarter, compared to analyst estimates of $423.65 million. Cloudflare had a negative return on equity of 7.18% and a negative net margin of 5.97%. As a group, equities analysts predict that Cloudflare, Inc. will post -0.11 EPS for the current year.

Insider Buying and Selling at Cloudflare

In related news, CEO Matthew Prince sold 52,384 shares of the company’s stock in a transaction dated Wednesday, September 4th. The shares were sold at an average price of $78.06, for a total transaction of $4,089,095.04. Following the transaction, the chief executive officer now owns 10,761 shares in the company, valued at $840,003.66. This represents a 82.96 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Thomas J. Seifert sold 15,000 shares of the stock in a transaction dated Wednesday, September 4th. The stock was sold at an average price of $78.05, for a total transaction of $1,170,750.00. Following the sale, the chief financial officer now directly owns 281,403 shares in the company, valued at approximately $21,963,504.15. This represents a 5.06 % decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders sold 606,952 shares of company stock valued at $53,078,202. 12.83% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the business. CVA Family Office LLC increased its holdings in Cloudflare by 121.3% in the third quarter. CVA Family Office LLC now owns 312 shares of the company’s stock valued at $25,000 after purchasing an additional 171 shares during the last quarter. Thurston Springer Miller Herd & Titak Inc. acquired a new position in shares of Cloudflare during the 2nd quarter worth about $29,000. Quarry LP increased its stake in shares of Cloudflare by 73.4% in the 2nd quarter. Quarry LP now owns 345 shares of the company’s stock valued at $29,000 after acquiring an additional 146 shares during the last quarter. Versant Capital Management Inc raised its position in shares of Cloudflare by 1,202.9% in the 2nd quarter. Versant Capital Management Inc now owns 456 shares of the company’s stock valued at $38,000 after acquiring an additional 421 shares during the period. Finally, Capital Performance Advisors LLP bought a new position in Cloudflare during the 3rd quarter worth approximately $38,000. Institutional investors own 82.68% of the company’s stock.

Cloudflare Company Profile

Cloudflare, Inc operates as a cloud services provider that delivers a range of services to businesses worldwide. The company provides an integrated cloud-based security solution to secure a range of combination of platforms, including public cloud, private cloud, on-premise, software-as-a-service applications, and IoT devices; and website and application security products comprising web application firewall, bot management, distributed denial of service, API gateways, SSL/TLS encryption, script management, security center, and rate limiting products.