Cloudflare (NYSE:NET) Announces Earnings Results, Hits Expectations

Cloudflare (NYSE:NET) released its earnings results on Thursday. The company reported ($0.03) EPS for the quarter, hitting analysts’ consensus estimates of ($0.03), reports. Cloudflare had a negative net margin of 6.90% and a negative return on equity of 8.54%. The company had revenue of $430.08 million during the quarter, compared to analysts’ expectations of $423.65 million.

Cloudflare Stock Performance

NYSE NET traded down $4.41 during trading hours on Friday, hitting $91.25. The company’s stock had a trading volume of 7,777,228 shares, compared to its average volume of 2,373,076. The company has a debt-to-equity ratio of 1.46, a current ratio of 3.51 and a quick ratio of 3.51. The company’s 50 day simple moving average is $84.77 and its two-hundred day simple moving average is $80.74. Cloudflare has a 12 month low of $61.34 and a 12 month high of $116.00. The company has a market cap of $31.18 billion, a P/E ratio of -314.83 and a beta of 1.10.

Analyst Ratings Changes

NET has been the subject of several recent analyst reports. Guggenheim boosted their price target on shares of Cloudflare from $50.00 to $57.00 and gave the stock a “sell” rating in a report on Friday, August 2nd. Wells Fargo & Company boosted their price target on shares of Cloudflare from $105.00 to $110.00 and gave the company an “overweight” rating in a research report on Friday. Piper Sandler boosted their price target on shares of Cloudflare from $83.00 to $92.00 and gave the company a “neutral” rating in a research report on Friday. Mizuho upped their target price on shares of Cloudflare from $92.00 to $105.00 and gave the company a “neutral” rating in a research report on Thursday, October 17th. Finally, Needham & Company LLC reiterated a “buy” rating and set a $135.00 price target on shares of Cloudflare in a research note on Friday, August 2nd. Four research analysts have rated the stock with a sell rating, twelve have given a hold rating and ten have issued a buy rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $92.88.

Insider Activity at Cloudflare

In other Cloudflare news, CAO Janel Riley sold 3,495 shares of the business’s stock in a transaction on Friday, August 16th. The shares were sold at an average price of $81.65, for a total value of $285,366.75. Following the sale, the chief accounting officer now owns 80,183 shares in the company, valued at $6,546,941.95. The trade was a 0.00 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. In other news, COO Michelle Zatlyn sold 35,117 shares of the stock in a transaction on Tuesday, August 20th. The shares were sold at an average price of $83.74, for a total value of $2,940,697.58. Following the sale, the chief operating officer now owns 192,177 shares in the company, valued at $16,092,901.98. This represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CAO Janel Riley sold 3,495 shares of the firm’s stock in a transaction on Friday, August 16th. The shares were sold at an average price of $81.65, for a total transaction of $285,366.75. Following the sale, the chief accounting officer now owns 80,183 shares in the company, valued at approximately $6,546,941.95. This represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 477,043 shares of company stock worth $39,737,342. 12.83% of the stock is owned by company insiders.

Institutional Investors Weigh In On Cloudflare

A number of institutional investors have recently made changes to their positions in the stock. CVA Family Office LLC grew 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. Allspring Global Investments Holdings LLC lifted its holdings in shares of Cloudflare by 595.0% in the 1st quarter. Allspring Global Investments Holdings LLC now owns 278 shares of the company’s stock worth $27,000 after purchasing an additional 238 shares during the last quarter. Thurston Springer Miller Herd & Titak Inc. acquired a new position in shares of Cloudflare during the 2nd quarter valued at $29,000. Quarry LP grew its holdings in shares of Cloudflare by 73.4% in the 2nd quarter. Quarry LP now owns 345 shares of the company’s stock worth $29,000 after acquiring an additional 146 shares during the last quarter. Finally, Versant Capital Management Inc grew its holdings in shares of Cloudflare by 1,202.9% during the second quarter. Versant Capital Management Inc now owns 456 shares of the company’s stock valued at $38,000 after buying an additional 421 shares in the last quarter. 82.68% of the stock is currently owned by institutional investors and hedge funds.

About Cloudflare

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.