DZ Bank Downgrades Cloudflare (NYSE:NET) to Sell

Cloudflare (NYSE:NET) was downgraded by equities research analysts at DZ Bank from a “hold” rating to a “sell” rating in a research note issued on Tuesday,Finviz reports. They presently have a $145.00 price target on the stock. DZ Bank’s price target would suggest a potential downside of 15.89% from the stock’s previous close.

Other equities analysts have also issued research reports about the company. UBS Group lifted their price objective on Cloudflare from $130.00 to $165.00 and gave the company a “neutral” rating in a research note on Friday. Stifel Nicolaus lifted their price objective on Cloudflare from $136.00 to $175.00 and gave the stock a “buy” rating in a report on Friday. Oppenheimer cut Cloudflare from an “outperform” rating to a “market perform” rating in a report on Friday. JMP Securities boosted their target price on Cloudflare from $135.00 to $180.00 and gave the stock a “market outperform” rating in a report on Friday. Finally, Baird R W cut Cloudflare from a “strong-buy” rating to a “hold” rating in a report on Monday, February 3rd. Four equities research analysts have rated the stock with a sell rating, twelve have given a hold rating and eleven have assigned a buy rating to the stock. According to MarketBeat, Cloudflare presently has a consensus rating of “Hold” and an average target price of $135.28.

Cloudflare Stock Performance

Shares of NET stock opened at $172.40 on Tuesday. The firm has a market capitalization of $59.17 billion, a price-to-earnings ratio of -783.65 and a beta of 1.12. 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 business has a fifty day moving average of $120.24 and a 200 day moving average of $97.77. Cloudflare has a 1 year low of $66.24 and a 1 year high of $176.73.

Cloudflare (NYSE:NET) last released its quarterly earnings data on Thursday, February 6th. The company reported ($0.03) earnings per share for the quarter, missing analysts’ consensus estimates of $0.18 by ($0.21). Cloudflare had a negative net margin of 4.72% and a negative return on equity of 5.52%. As a group, research analysts expect that Cloudflare will post -0.04 earnings per share for the current year.

Insider Buying and Selling at Cloudflare

In other news, CEO Matthew Prince sold 52,384 shares of the stock in a transaction dated Wednesday, November 13th. The shares were sold at an average price of $95.59, for a total transaction of $5,007,386.56. Following the completion of the sale, the chief executive officer now owns 192,177 shares in the company, valued at approximately $18,370,199.43. This represents a 21.42 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Douglas James Kramer sold 2,481 shares of the stock in a transaction dated Monday, February 3rd. The stock was sold at an average price of $131.66, for a total transaction of $326,648.46. Following the sale, the insider now owns 175,688 shares of the company’s stock, valued at $23,131,082.08. This trade represents a 1.39 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 633,738 shares of company stock worth $69,632,506 over the last 90 days. Corporate insiders own 12.83% of the company’s stock.

Institutional Investors Weigh In On Cloudflare

Several hedge funds have recently made changes to their positions in NET. CVA Family Office LLC raised its holdings in Cloudflare by 121.3% during the third quarter. CVA Family Office LLC now owns 312 shares of the company’s stock worth $25,000 after purchasing an additional 171 shares in the last quarter. Capital Performance Advisors LLP purchased a new position in Cloudflare during the third quarter worth about $38,000. Quarry LP raised its holdings in Cloudflare by 38.6% during the third quarter. Quarry LP now owns 478 shares of the company’s stock worth $39,000 after purchasing an additional 133 shares in the last quarter. Quest Partners LLC purchased a new position in Cloudflare during the third quarter worth about $54,000. Finally, Larson Financial Group LLC raised its holdings in Cloudflare by 1,988.5% during the fourth quarter. Larson Financial Group LLC now owns 543 shares of the company’s stock worth $58,000 after purchasing an additional 517 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.