Cloudflare (NYSE:NET) Hits New 12-Month High – Still a Buy?

Cloudflare, Inc. (NYSE:NET)’s stock price hit a new 52-week high during trading on Tuesday . The company traded as high as $118.97 and last traded at $117.92, with a volume of 610053 shares changing hands. The stock had previously closed at $114.65.

Analyst Upgrades and Downgrades

Several research firms recently commented on NET. Scotiabank increased their target price on Cloudflare from $85.00 to $87.00 and gave the company a “sector perform” rating in a report on Friday, November 8th. UBS Group increased their price target on shares of Cloudflare from $88.00 to $95.00 and gave the company a “neutral” rating in a research note on Friday, November 8th. BNP Paribas assumed coverage on shares of Cloudflare in a research report on Tuesday, October 8th. They issued an “underperform” rating and a $65.00 price target for the company. Mizuho lifted their target price on Cloudflare from $102.00 to $125.00 and gave the stock a “neutral” rating in a research report on Friday, December 13th. Finally, Wells Fargo & Company boosted their price objective on Cloudflare from $105.00 to $110.00 and gave the company an “overweight” rating in a research note on Friday, November 8th. Four research analysts have rated the stock with a sell rating, eleven have given a hold rating and twelve have assigned a buy rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average target price of $96.77.

Cloudflare Trading Down 7.2 %

The firm has a market cap of $37.44 billion, a PE ratio of -419.62 and a beta of 1.10. The business has a 50-day moving average price of $97.50 and a two-hundred day moving average price of $85.78. The company has a debt-to-equity ratio of 1.32, a current ratio of 3.37 and a quick ratio of 3.37.

Cloudflare (NYSE:NET) last posted its quarterly earnings data on Thursday, November 7th. The company reported ($0.03) earnings per share for the quarter, meeting analysts’ consensus estimates of ($0.03). Cloudflare had a negative net margin of 5.97% and a negative return on equity of 7.18%. The business had revenue of $430.08 million during the quarter, compared to analyst estimates of $423.65 million. Analysts forecast that Cloudflare, Inc. will post -0.1 EPS for the current year.

Insider Buying and Selling at Cloudflare

In related news, CFO Thomas J. Seifert sold 15,000 shares of Cloudflare stock in a transaction on Thursday, October 3rd. The stock was sold at an average price of $79.19, for a total value of $1,187,850.00. Following the transaction, the chief financial officer now owns 281,403 shares in the company, valued at approximately $22,284,303.57. This trade represents a 5.06 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, COO Michelle Zatlyn sold 64,100 shares of the firm’s stock in a transaction dated Monday, October 7th. The stock was sold at an average price of $81.60, for a total value of $5,230,560.00. Following the completion of the transaction, the chief operating officer now owns 192,177 shares in the company, valued at approximately $15,681,643.20. This trade represents a 25.01 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 509,824 shares of company stock worth $47,862,488 in the last 90 days. 12.83% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of NET. Tidal Investments LLC boosted its holdings in Cloudflare by 18.0% in the 3rd quarter. Tidal Investments LLC now owns 23,238 shares of the company’s stock worth $1,880,000 after acquiring an additional 3,550 shares during the period. Wilmington Savings Fund Society FSB acquired a new stake in Cloudflare during the 3rd quarter valued at $204,000. Sanctuary Advisors LLC increased its stake in Cloudflare by 37.2% during the 3rd quarter. Sanctuary Advisors LLC now owns 14,133 shares of the company’s stock worth $1,143,000 after buying an additional 3,835 shares during the period. Virtu Financial LLC purchased a new position in Cloudflare in the 3rd quarter valued at about $1,268,000. Finally, Advisory Resource Group grew its stake in shares of Cloudflare by 1.6% during the third quarter. Advisory Resource Group now owns 12,611 shares of the company’s stock valued at $1,020,000 after acquiring an additional 195 shares in the last quarter. Institutional investors and hedge funds 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.