Cloudflare (NYSE:NET) Shares Gap Down – Here’s What Happened

Shares of Cloudflare, Inc. (NYSE:NET) gapped down prior to trading on Tuesday . The stock had previously closed at $142.91, but opened at $135.25. Cloudflare shares last traded at $133.88, with a volume of 1,110,268 shares traded.

Wall Street Analyst Weigh In

Several equities analysts recently weighed in on the stock. DZ Bank cut shares of Cloudflare from a “hold” rating to a “sell” rating and set a $145.00 target price for the company. in a research note on Tuesday, February 11th. Royal Bank of Canada lifted their price target on shares of Cloudflare from $123.00 to $170.00 and gave the company an “outperform” rating in a report on Friday, February 7th. Needham & Company LLC reiterated a “buy” rating and issued a $185.00 price target on shares of Cloudflare in a report on Tuesday, February 18th. Susquehanna increased their price target on Cloudflare from $95.00 to $170.00 and gave the company a “neutral” rating in a research note on Monday, February 10th. Finally, Robert W. Baird reissued a “neutral” rating and set a $140.00 price target (up from $125.00) on shares of Cloudflare in a research note on Monday, February 3rd. Four analysts have rated the stock with a sell rating, twelve have issued a hold rating and eleven have issued a buy rating to the company. According to data from MarketBeat, Cloudflare presently has a consensus rating of “Hold” and a consensus target price of $136.28.

Cloudflare Trading Down 0.6 %

The firm has a market capitalization of $48.77 billion, a P/E ratio of -650.23 and a beta of 1.12. The stock has a 50-day simple moving average of $133.93 and a two-hundred day simple moving average of $106.20. The company has a current ratio of 3.37, a quick ratio of 3.37 and a debt-to-equity ratio of 1.32.

Cloudflare (NYSE:NET) last released its quarterly earnings data 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 net margin of 4.72% and a negative return on equity of 5.52%. On average, equities research analysts anticipate that Cloudflare, Inc. will post -0.11 earnings per share for the current year.

Insider Activity at Cloudflare

In other Cloudflare news, CAO Janel Riley sold 4,327 shares of the stock in a transaction dated Tuesday, February 18th. The shares were sold at an average price of $167.60, for a total transaction of $725,205.20. Following the completion of the sale, the chief accounting officer now directly owns 74,698 shares of the company’s stock, valued at approximately $12,519,384.80. This represents a 5.48 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, CFO Thomas J. Seifert sold 15,000 shares of the firm’s stock in a transaction dated Wednesday, December 4th. The shares were sold at an average price of $109.90, for a total transaction of $1,648,500.00. Following the completion of the sale, the chief financial officer now owns 252,869 shares in the company, valued at $27,790,303.10. This represents a 5.60 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 638,046 shares of company stock valued at $81,243,344 over the last ninety days. 12.83% of the stock is owned by company insiders.

Hedge Funds Weigh In On Cloudflare

Hedge funds and other institutional investors have recently modified their holdings of the stock. Groupama Asset Managment purchased a new position in shares of Cloudflare in the fourth quarter worth $269,200,000. Norges Bank purchased a new position in Cloudflare in the 4th quarter worth $249,544,000. American Century Companies Inc. raised its stake in Cloudflare by 82.0% in the 4th quarter. American Century Companies Inc. now owns 2,257,601 shares of the company’s stock worth $243,098,000 after acquiring an additional 1,017,399 shares during the last quarter. Fred Alger Management LLC lifted its position in Cloudflare by 856.3% during the 4th quarter. Fred Alger Management LLC now owns 934,286 shares of the company’s stock worth $100,604,000 after acquiring an additional 836,591 shares during the period. Finally, Invesco Ltd. lifted its position in Cloudflare by 292.5% during the 4th quarter. Invesco Ltd. now owns 1,078,921 shares of the company’s stock worth $116,178,000 after acquiring an additional 804,059 shares during the period. 82.68% of the stock is owned by hedge funds and other 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.