Cloudflare (NYSE:NET) Shares Gap Down Following Analyst Downgrade

Shares of Cloudflare, Inc. (NYSE:NET) gapped down prior to trading on Thursday after Royal Bank of Canada lowered their price target on the stock from $170.00 to $148.00. The stock had previously closed at $119.40, but opened at $115.49. Royal Bank of Canada currently has an outperform rating on the stock. Cloudflare shares last traded at $114.14, with a volume of 757,049 shares trading hands.

NET has been the subject of a number of other reports. Baird R W downgraded Cloudflare from a “strong-buy” rating to a “hold” rating in a research note on Monday, February 3rd. JPMorgan Chase & Co. upped their target price on shares of Cloudflare from $110.00 to $115.00 and gave the stock a “neutral” rating in a research report on Friday, February 7th. Oppenheimer cut shares of Cloudflare from an “outperform” rating to a “market perform” rating in a report on Friday, February 7th. The Goldman Sachs Group boosted their price objective on Cloudflare from $140.00 to $183.00 and gave the stock a “buy” rating in a research note on Friday, February 7th. Finally, Mizuho dropped their price objective on Cloudflare from $160.00 to $140.00 and set a “neutral” rating on the stock in a research note on Thursday. Four investment 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 data from MarketBeat, Cloudflare presently has a consensus rating of “Hold” and an average price target of $130.92.

Insider Buying and Selling

In related news, CAO Janel Riley sold 4,327 shares of the business’s stock in a transaction that occurred on Tuesday, February 18th. The shares were sold at an average price of $167.60, for a total transaction of $725,205.20. Following the transaction, the chief accounting officer now directly owns 74,698 shares of the company’s stock, valued at approximately $12,519,384.80. The trade was a 5.48 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, insider Douglas James Kramer sold 2,481 shares of the business’s stock in a transaction that occurred on Monday, February 3rd. The shares were sold at an average price of $131.66, for a total transaction of $326,648.46. Following the transaction, the insider now directly owns 175,688 shares in the company, valued at $23,131,082.08. The trade was a 1.39 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 571,766 shares of company stock valued at $73,804,307. Company insiders own 12.83% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in NET. Quarry LP increased its holdings in Cloudflare by 38.6% in the third quarter. Quarry LP now owns 478 shares of the company’s stock worth $39,000 after buying an additional 133 shares during the last quarter. Gordian Capital Singapore Pte Ltd acquired a new position in Cloudflare in the fourth quarter worth approximately $43,000. Quest Partners LLC acquired a new position in Cloudflare in the third quarter worth approximately $54,000. Park Square Financial Group LLC acquired a new position in Cloudflare in the fourth quarter worth approximately $56,000. Finally, Larson Financial Group LLC increased 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 buying an additional 517 shares during the last quarter. 82.68% of the stock is owned by hedge funds and other institutional investors.

Cloudflare Stock Down 5.0 %

The business has a fifty day moving average of $136.44 and a 200 day moving average of $108.28. The stock has a market cap of $39.12 billion, a price-to-earnings ratio of -515.35 and a beta of 1.27. The company has a debt-to-equity ratio of 1.32, a current ratio of 3.37 and a quick ratio of 3.37.

Cloudflare (NYSE:NET) last posted its earnings results on Thursday, February 6th. The company reported ($0.03) earnings per share for the quarter, missing the consensus estimate of $0.18 by ($0.21). Cloudflare had a negative return on equity of 5.52% and a negative net margin of 4.72%. On average, equities analysts predict that Cloudflare, Inc. will post -0.11 earnings per share for the current year.

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.