Cloudflare (NYSE:NET) Stock Price Down 8.8% – Should You Sell?

Cloudflare, Inc. (NYSE:NET)’s share price was down 8.8% during trading on Monday . The company traded as low as $160.93 and last traded at $161.5140. Approximately 5,045,522 shares traded hands during trading, a decline of 4% from the average daily volume of 5,251,303 shares. The stock had previously closed at $177.14.

Wall Street Analyst Weigh In

NET has been the subject of a number of recent analyst reports. UBS Group reaffirmed a “neutral” rating and issued a $220.00 price target on shares of Cloudflare in a research note on Wednesday, February 11th. DZ Bank raised shares of Cloudflare from a “hold” rating to a “buy” rating and set a $215.00 target price for the company in a research note on Friday, February 13th. Jefferies Financial Group increased their target price on shares of Cloudflare from $185.00 to $225.00 and gave the stock a “hold” rating in a report on Wednesday, February 11th. Weiss Ratings restated a “sell (d-)” rating on shares of Cloudflare in a research report on Wednesday, January 21st. Finally, Truist Financial set a $225.00 price objective on Cloudflare in a research note on Tuesday, January 20th. One investment analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating, seven have assigned a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat, Cloudflare currently has a consensus rating of “Moderate Buy” and a consensus price target of $230.70.

Cloudflare Stock Performance

The company has a quick ratio of 2.04, a current ratio of 2.04 and a debt-to-equity ratio of 1.46. The stock’s fifty day moving average is $188.52 and its two-hundred day moving average is $204.21. The firm has a market capitalization of $56.04 billion, a price-to-earnings ratio of -551.63 and a beta of 1.97.

Cloudflare (NYSE:NET) last issued its earnings results on Tuesday, February 10th. The company reported $0.28 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.27 by $0.01. Cloudflare had a negative net margin of 4.72% and a negative return on equity of 7.40%. The business had revenue of $614.51 million during the quarter, compared to the consensus estimate of $591.67 million. During the same period last year, the business posted $0.19 EPS. Cloudflare’s revenue was up 33.6% on a year-over-year basis. On average, analysts predict that Cloudflare, Inc. will post -0.11 earnings per share for the current year.

Insider Buying and Selling

In other Cloudflare news, Director John Graham-Cumming sold 2,520 shares of Cloudflare stock in a transaction on Monday, February 9th. The shares were sold at an average price of $173.35, for a total transaction of $436,842.00. Following the completion of the transaction, the director directly owned 495,191 shares of the company’s stock, valued at $85,841,359.85. The trade was a 0.51% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Thomas J. Seifert sold 10,000 shares of the company’s stock in a transaction on Tuesday, January 20th. The shares were sold at an average price of $178.37, for a total transaction of $1,783,700.00. Following the completion of the transaction, the chief financial officer owned 137,486 shares in the company, valued at approximately $24,523,377.82. This represents a 6.78% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 378,093 shares of company stock valued at $74,578,759. Insiders own 10.89% of the company’s stock.

Institutional Investors Weigh In On Cloudflare

Hedge funds and other institutional investors have recently modified their holdings of the company. HM Payson & Co. bought a new stake in shares of Cloudflare during the 4th quarter valued at $25,000. Physician Wealth Advisors Inc. increased its position in shares of Cloudflare by 693.3% in the third quarter. Physician Wealth Advisors Inc. now owns 119 shares of the company’s stock worth $26,000 after purchasing an additional 104 shares during the period. Wiser Advisor Group LLC acquired a new position in Cloudflare in the third quarter valued at about $26,000. Westside Investment Management Inc. lifted its position in Cloudflare by 100.0% during the third quarter. Westside Investment Management Inc. now owns 130 shares of the company’s stock worth $28,000 after purchasing an additional 65 shares during the period. Finally, Twin Peaks Wealth Advisors LLC bought a new stake in Cloudflare during the second quarter worth about $29,000. Institutional investors and hedge funds own 82.68% of the company’s stock.

About Cloudflare

Cloudflare, Inc is a global web infrastructure and security company that provides a suite of services designed to improve the performance, reliability and security of internet properties. Its core offerings include a content delivery network (CDN), distributed denial-of-service (DDoS) protection, managed DNS, and a web application firewall (WAF). Cloudflare also provides tools for bot management, SSL/TLS, load balancing and rate limiting to help organizations maintain uptime and protect web applications from attack.

In addition to traditional edge and security services, Cloudflare has expanded into edge computing and developer platforms.