Cloudflare (NYSE:NET) Stock Price Target Lowered at Cantor Fitzgerald

Cloudflare (NYSE:NET) had its price objective decreased by research analysts at Cantor Fitzgerald from $340.00 to $310.00 in a note issued to investors on Friday, Benzinga reports. The brokerage presently has a “neutral” rating on the stock. Cantor Fitzgerald‘s target price suggests a potential upside of 27.16% from the stock’s previous close.

Other equities analysts also recently issued research reports about the stock. Royal Bank Of Canada boosted their price objective on shares of Cloudflare from $290.00 to $346.00 and gave the stock an “outperform” rating in a research note on Friday, August 7th. Robert W. Baird set a $330.00 price target on Cloudflare in a report on Friday, August 7th. Susquehanna lifted their price target on Cloudflare from $200.00 to $300.00 and gave the company a “neutral” rating in a report on Monday, August 10th. DZ Bank lowered Cloudflare from a “strong-buy” rating to a “strong sell” rating in a research report on Friday, August 7th. Finally, Piper Sandler upped their price objective on Cloudflare from $250.00 to $333.00 and gave the stock an “overweight” rating in a research note on Friday, August 7th. Twenty-five analysts have rated the stock with a Buy rating, eight have given a Hold rating and four have issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $333.61.

Cloudflare Stock Down 8.5%

Shares of Cloudflare stock opened at $243.79 on Friday. The company has a debt-to-equity ratio of 1.22, a current ratio of 1.82 and a quick ratio of 1.82. Cloudflare has a 1 year low of $158.83 and a 1 year high of $370.35. The firm’s 50-day moving average is $319.02 and its two-hundred day moving average is $249.31. The stock has a market cap of $86.17 billion, a price-to-earnings ratio of -420.32, a PEG ratio of 206.44 and a beta of 1.37.

Cloudflare (NYSE:NET) last posted its earnings results on Thursday, November 5th. The company reported $0.38 EPS for the quarter, beating analysts’ consensus estimates of $0.34 by $0.04. Cloudflare had a negative net margin of 8.21% and a negative return on equity of 3.88%. The business had revenue of $782.51 million for the quarter, compared to the consensus estimate of $737.16 million. During the same quarter last year, the firm posted $0.27 EPS. The company’s revenue for the quarter was up 39.2% on a year-over-year basis. As a group, research analysts expect that Cloudflare will post 0.03 earnings per share for the current fiscal year.

Insider Transactions at Cloudflare

In related news, Director Carl Ledbetter sold 5,000 shares of the company’s stock in a transaction dated Monday, October 19th. The stock was sold at an average price of $304.40, for a total transaction of $1,522,000.00. Following the transaction, the director directly owned 868,073 shares of the company’s stock, valued at $264,241,421.20. This represents a 0.57% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Thomas J. Seifert sold 12,500 shares of the stock in a transaction dated Monday, October 19th. The shares were sold at an average price of $299.59, for a total value of $3,744,875.00. Following the completion of the sale, the chief financial officer owned 104,958 shares of the company’s stock, valued at approximately $31,444,367.22. This trade represents a 10.64% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 259,057 shares of company stock valued at $79,516,905 in the last quarter. 10.66% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Cloudflare

A number of large investors have recently modified their holdings of the business. Andra AP fonden increased its stake in shares of Cloudflare by 44.5% during the second quarter. Andra AP fonden now owns 48,356 shares of the company’s stock worth $11,861,000 after purchasing an additional 14,900 shares in the last quarter. Plato Investment Management Ltd purchased a new position in shares of Cloudflare during the 2nd quarter worth $1,499,000. Insight Holdings Group LLC acquired a new position in Cloudflare in the 1st quarter valued at about $6,768,000. Independent Financial Group LLC acquired a new position in Cloudflare in the 1st quarter valued at about $3,484,000. Finally, Capula Management Ltd increased its holdings in shares of Cloudflare by 97.1% during the 1st quarter. Capula Management Ltd now owns 13,526 shares of the company’s stock worth $2,791,000 after buying an additional 6,662 shares during the last quarter. Hedge funds and other institutional investors own 82.68% of the company’s stock.

More Cloudflare News

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Q3 revenue increased 39.2% year over year to $782.5 million, above forecasts, while non-GAAP EPS of $0.38 also beat estimates. The company called it a record quarter, with annualized revenue surpassing $3 billion. Cloudflare earnings results
• Positive Sentiment: Cloudflare raised its full-year revenue forecast to about $2.96 billion, from prior guidance of $2.86 billion–$2.87 billion. Its next-quarter revenue outlook was also stronger than analysts expected, supporting optimism about continued demand. WSJ outlook report
• Positive Sentiment: Reports cited enterprise adoption and demand for Cloudflare’s developer platform amid AI workloads as drivers of growth. Shares rallied in after-hours and premarket trading following the results. After-hours earnings coverage
• Neutral Sentiment: Cloudflare appointed Christian Smith president of revenue to lead its global go-to-market organization, with a stated focus on scaling growth. The impact will depend on execution. Revenue leadership appointment
• Negative Sentiment: Despite rapid sales growth, gross margin declined, free cash flow grew much more slowly than revenue, and the GAAP operating loss widened. These trends could temper enthusiasm if growth does not translate into improving profitability. Earnings and profitability analysis

About Cloudflare

Cloudflare, Inc (NYSE: NET) provides cloud connectivity, security and performance services for websites, applications, corporate networks and other internet-connected resources. Its global network is designed to help organizations improve the reliability, speed and security of digital services while reducing the complexity of managing internet infrastructure.

The company’s offerings include content delivery and authoritative domain name system services, distributed denial-of-service protection, web application and application programming interface security, bot management, and network security tools.