Cloudflare (NYSE:NET) Hits New 12-Month High – Time to Buy?

Cloudflare, Inc. (NYSE:NET)’s share price hit a new 52-week high during trading on Friday . The stock traded as high as $119.69 and last traded at $119.03, with a volume of 22889 shares trading hands. The stock had previously closed at $114.82.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on NET. Scotiabank upped their price objective on shares of Cloudflare from $85.00 to $87.00 and gave the company a “sector perform” rating in a research report on Friday, November 8th. Morgan Stanley upgraded shares of Cloudflare from an “equal weight” rating to an “overweight” rating and upped their price objective for the company from $92.00 to $130.00 in a research report on Monday, December 2nd. The Goldman Sachs Group upgraded shares of Cloudflare from a “sell” rating to a “buy” rating and upped their price objective for the company from $77.00 to $140.00 in a research report on Thursday, January 2nd. Piper Sandler upped their price objective on shares of Cloudflare from $83.00 to $92.00 and gave the company a “neutral” rating in a research report on Friday, November 8th. Finally, Citigroup upgraded shares of Cloudflare from a “neutral” rating to a “buy” rating and upped their price objective for the company from $95.00 to $145.00 in a research report on Friday. Three equities research analysts have rated the stock with a sell rating, nine have assigned a hold rating and fourteen have issued a buy rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $107.00.

Cloudflare Stock Performance

The stock’s 50 day moving average price is $107.72 and its 200 day moving average price is $91.49. The company has a current ratio of 3.37, a quick ratio of 3.37 and a debt-to-equity ratio of 1.32. The company has a market capitalization of $40.20 billion, a price-to-earnings ratio of -450.49 and a beta of 1.10.

Cloudflare (NYSE:NET) last posted its quarterly earnings data on Thursday, November 7th. The company reported ($0.03) EPS for the quarter, hitting 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 company had revenue of $430.08 million during the quarter, compared to the consensus estimate of $423.65 million. Analysts expect that Cloudflare, Inc. will post -0.1 earnings per share for the current year.

Insider Activity at Cloudflare

In related news, insider Douglas James Kramer sold 3,000 shares of the firm’s stock in a transaction dated Friday, November 1st. The shares were sold at an average price of $88.60, for a total value of $265,800.00. Following the completion of the sale, the insider now directly owns 185,386 shares in the company, valued at approximately $16,425,199.60. This trade represents a 1.59 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Maria S. Eitel sold 6,875 shares of the firm’s stock in a transaction dated Friday, November 1st. The shares were sold at an average price of $88.00, for a total transaction of $605,000.00. Following the completion of the sale, the director now owns 5,927 shares of the company’s stock, valued at $521,576. This trade represents a 53.70 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 524,852 shares of company stock worth $55,386,256. Insiders own 12.83% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of NET. Envestnet Asset Management Inc. raised its holdings in Cloudflare by 2.4% in the 2nd quarter. Envestnet Asset Management Inc. now owns 195,791 shares of the company’s stock valued at $16,217,000 after acquiring an additional 4,682 shares during the period. Dimensional Fund Advisors LP raised its holdings in Cloudflare by 0.4% in the 2nd quarter. Dimensional Fund Advisors LP now owns 326,853 shares of the company’s stock valued at $27,070,000 after acquiring an additional 1,460 shares during the period. Renaissance Technologies LLC bought a new position in Cloudflare in the 2nd quarter valued at about $7,463,000. Amalgamated Bank increased its holdings in shares of Cloudflare by 3.6% during the second quarter. Amalgamated Bank now owns 20,316 shares of the company’s stock worth $1,683,000 after purchasing an additional 714 shares during the period. Finally, Vanguard Personalized Indexing Management LLC increased its holdings in shares of Cloudflare by 5.5% during the second quarter. Vanguard Personalized Indexing Management LLC now owns 25,422 shares of the company’s stock worth $2,106,000 after purchasing an additional 1,330 shares during the period. 82.68% of the stock is owned by institutional investors.

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.