Cloudflare (NYSE:NET) Reaches New 12-Month High – Should You Buy?

Cloudflare, Inc. (NYSE:NET) shares reached a new 52-week high during mid-day trading on Thursday . The stock traded as high as $123.13 and last traded at $123.03, with a volume of 2523164 shares traded. The stock had previously closed at $119.85.

Analyst Upgrades and Downgrades

NET has been the subject of a number of analyst reports. Royal Bank of Canada raised their price target on Cloudflare from $99.00 to $123.00 and gave the company an “outperform” rating in a research note on Friday, January 3rd. Scotiabank raised their target price on shares of Cloudflare from $87.00 to $110.00 and gave the company a “sector perform” rating in a research note on Tuesday. UBS Group increased their price target on shares of Cloudflare from $88.00 to $95.00 and gave the company a “neutral” rating in a research note on Friday, November 8th. Cantor Fitzgerald assumed coverage on Cloudflare in a research report on Friday, January 17th. They issued a “neutral” rating and a $111.00 price objective for the company. Finally, Wells Fargo & Company increased their price target on Cloudflare from $110.00 to $135.00 and gave the company an “overweight” rating in a research note on Tuesday, January 7th. Three equities research analysts have rated the stock with a sell rating, nine have given a hold rating and fourteen have issued a buy rating to the stock. According to MarketBeat, Cloudflare currently has a consensus rating of “Hold” and a consensus target price of $108.32.

Cloudflare Trading Up 2.7 %

The firm’s 50-day simple moving average is $109.35 and its 200 day simple moving average is $92.22. The company has a debt-to-equity ratio of 1.32, a current ratio of 3.37 and a quick ratio of 3.37. The firm has a market capitalization of $42.22 billion, a price-to-earnings ratio of -473.20 and a beta of 1.10.

Cloudflare (NYSE:NET) last posted its quarterly earnings results on Thursday, November 7th. The company reported ($0.03) EPS for the quarter, hitting analysts’ consensus estimates of ($0.03). The company had revenue of $430.08 million during the quarter, compared to analysts’ expectations of $423.65 million. Cloudflare had a negative return on equity of 7.18% and a negative net margin of 5.97%. Equities analysts expect that Cloudflare, Inc. will post -0.1 earnings per share for the current year.

Insider Activity

In other Cloudflare news, CFO Thomas J. Seifert sold 15,000 shares of the firm’s stock in a transaction that occurred on Monday, November 4th. The shares were sold at an average price of $86.79, for a total value of $1,301,850.00. Following the sale, the chief financial officer now owns 281,403 shares in the company, valued at $24,422,966.37. This trade represents a 5.06 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CEO Matthew Prince sold 52,384 shares of the company’s stock in a transaction on Wednesday, November 13th. The stock was sold at an average price of $95.59, for a total transaction of $5,007,386.56. Following the transaction, the chief executive officer now owns 192,177 shares of the company’s stock, valued at $18,370,199.43. This trade represents a 21.42 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 589,852 shares of company stock worth $63,169,052. Corporate insiders own 12.83% of the company’s stock.

Institutional Trading of Cloudflare

Hedge funds and other institutional investors have recently made changes to their positions in the company. CVA Family Office LLC grew its holdings in Cloudflare by 121.3% during the 3rd quarter. CVA Family Office LLC now owns 312 shares of the company’s stock worth $25,000 after acquiring an additional 171 shares during the last quarter. Quarry LP grew its stake in shares of Cloudflare by 73.4% in the second quarter. Quarry LP now owns 345 shares of the company’s stock worth $29,000 after purchasing an additional 146 shares during the last quarter. Capital Performance Advisors LLP acquired a new stake in Cloudflare in the third quarter valued at $38,000. Quest Partners LLC bought a new position in Cloudflare during the 3rd quarter worth $54,000. Finally, Versant Capital Management Inc grew its position in shares of Cloudflare by 44.9% in the 4th quarter. Versant Capital Management Inc now owns 549 shares of the company’s stock valued at $59,000 after buying an additional 170 shares during the last quarter. 82.68% of the stock is currently owned by institutional investors.

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.