Cloudflare (NYSE:NET) Trading Down 4.6% – Should You Sell?

Cloudflare, Inc. (NYSE:NET)’s share price fell 4.6% on Tuesday . The stock traded as low as $140.50 and last traded at $141.23. 1,238,228 shares were traded during mid-day trading, a decline of 68% from the average session volume of 3,921,542 shares. The stock had previously closed at $148.00.

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on NET shares. Robert W. Baird reissued a “neutral” rating and set a $140.00 price target (up from $125.00) on shares of Cloudflare in a report on Monday, February 3rd. Morgan Stanley lifted their target price on Cloudflare from $130.00 to $140.00 and gave the company an “overweight” rating in a research note on Tuesday, January 21st. Needham & Company LLC reissued a “buy” rating and issued a $185.00 price target on shares of Cloudflare in a report on Tuesday, February 18th. Mizuho increased their price objective on shares of Cloudflare from $130.00 to $160.00 and gave the company a “neutral” rating in a report on Monday, February 10th. Finally, JPMorgan Chase & Co. lifted their price objective on shares of Cloudflare from $110.00 to $115.00 and gave the company a “neutral” rating in a research report on Friday, February 7th. Four analysts have rated the stock with a sell rating, twelve have given a hold rating and eleven have given a buy rating to the company’s stock. According to MarketBeat.com, Cloudflare has a consensus rating of “Hold” and a consensus target price of $136.28.

Cloudflare Price Performance

The company has a quick ratio of 3.37, a current ratio of 3.37 and a debt-to-equity ratio of 1.32. The company has a market capitalization of $49.60 billion, a PE ratio of -653.87 and a beta of 1.12. The firm’s 50 day simple moving average is $130.77 and its 200 day simple moving average is $103.96.

Cloudflare (NYSE:NET) last issued its quarterly earnings results on Thursday, February 6th. The company reported ($0.03) EPS for the quarter, missing the consensus estimate 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 anticipate that Cloudflare, Inc. will post -0.11 EPS for the current fiscal year.

Insider Buying and Selling

In other Cloudflare news, insider Douglas James Kramer sold 2,481 shares of the business’s stock in a transaction dated Monday, February 3rd. The shares were sold at an average price of $131.66, for a total value of $326,648.46. Following the completion of the sale, the insider now directly owns 175,688 shares of the company’s stock, valued at $23,131,082.08. The trade was a 1.39 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Thomas J. Seifert sold 15,000 shares of the firm’s stock in a transaction that occurred on Wednesday, December 4th. The stock was sold at an average price of $109.90, for a total transaction of $1,648,500.00. Following the transaction, the chief financial officer now directly owns 252,869 shares in the company, valued at approximately $27,790,303.10. This trade represents a 5.60 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 558,918 shares of company stock valued at $68,709,509. 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. Capital Performance Advisors LLP purchased a new position in Cloudflare during the 3rd quarter valued at about $38,000. Quarry LP raised its position in shares of Cloudflare by 38.6% in the 3rd quarter. Quarry LP now owns 478 shares of the company’s stock worth $39,000 after acquiring an additional 133 shares in the last quarter. Gordian Capital Singapore Pte Ltd purchased a new stake in shares of Cloudflare during the 4th quarter worth $43,000. Quest Partners LLC purchased a new position in Cloudflare in the third quarter valued at about $54,000. Finally, Larson Financial Group LLC raised its holdings in Cloudflare by 1,988.5% in 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. 82.68% of the stock is currently owned by hedge funds and other institutional investors.

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.