Cloudflare (NYSE:NET) Shares Gap Down – Time to Sell?

Cloudflare, Inc. (NYSE:NET)’s stock price 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 Analysts Forecast Growth

Several equities analysts recently weighed in on NET shares. The Goldman Sachs Group increased their price target on shares of Cloudflare from $140.00 to $183.00 and gave the stock a “buy” rating in a report on Friday, February 7th. JPMorgan Chase & Co. increased their price target on shares of Cloudflare from $110.00 to $115.00 and gave the stock a “neutral” rating in a report on Friday, February 7th. Jefferies Financial Group boosted their target price on shares of Cloudflare from $100.00 to $125.00 and gave the company a “hold” rating in a research report on Thursday, December 19th. Cantor Fitzgerald boosted their target price on shares of Cloudflare from $111.00 to $149.00 and gave the company a “neutral” rating in a research report on Friday, February 7th. Finally, JMP Securities boosted their target price on shares of Cloudflare from $135.00 to $180.00 and gave the company a “market outperform” rating in a research report on Friday, February 7th. Four investment analysts have rated the stock with a sell rating, twelve have assigned a hold rating and eleven have assigned a buy rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $136.28.

Cloudflare Stock Performance

The stock has a market cap of $48.77 billion, a price-to-earnings ratio of -650.23 and a beta of 1.12. The firm’s 50-day moving average is $133.93 and its two-hundred day moving average is $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 announced its earnings results on Thursday, February 6th. The company reported ($0.03) EPS for the quarter, missing analysts’ consensus estimates 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, sell-side analysts expect that Cloudflare, Inc. will post -0.11 earnings per share for the current year.

Insiders Place Their Bets

In other news, 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 value of $1,648,500.00. Following the transaction, the chief financial officer now directly owns 252,869 shares of the company’s stock, valued at approximately $27,790,303.10. This trade represents a 5.60 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, COO Michelle Zatlyn sold 25,640 shares of the company’s stock in a transaction dated Tuesday, December 10th. The shares were sold at an average price of $112.68, for a total transaction of $2,889,115.20. Following the sale, the chief operating officer now directly owns 172,959 shares of the company’s stock, valued at approximately $19,489,020.12. This represents a 12.91 % decrease in their position. 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 in the last 90 days. 12.83% of the stock is owned by insiders.

Institutional Trading of Cloudflare

Hedge funds and other institutional investors have recently modified their holdings of the stock. CreativeOne Wealth LLC grew its holdings in Cloudflare by 0.8% during the 4th quarter. CreativeOne Wealth LLC now owns 6,982 shares of the company’s stock worth $752,000 after acquiring an additional 58 shares in the last quarter. Stratos Wealth Partners LTD. lifted its position in shares of Cloudflare by 1.2% during the 4th quarter. Stratos Wealth Partners LTD. now owns 6,583 shares of the company’s stock worth $709,000 after purchasing an additional 77 shares during the last quarter. Atomi Financial Group Inc. grew its stake in shares of Cloudflare by 3.3% during the fourth quarter. Atomi Financial Group Inc. now owns 2,966 shares of the company’s stock worth $319,000 after purchasing an additional 94 shares in the last quarter. Baxter Bros Inc. increased its holdings in Cloudflare by 3.8% in the fourth quarter. Baxter Bros Inc. now owns 2,750 shares of the company’s stock valued at $296,000 after buying an additional 100 shares during the last quarter. Finally, Ellevest Inc. raised its stake in Cloudflare by 2.3% in the fourth quarter. Ellevest Inc. now owns 4,538 shares of the company’s stock valued at $489,000 after buying an additional 102 shares in the last quarter. 82.68% of the stock is owned by institutional investors and hedge funds.

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.