Cloudflare (NYSE:NET) Sets New 12-Month High – Time to Buy?

Cloudflare, Inc. (NYSE:NET) reached a new 52-week high during mid-day trading on Wednesday . The stock traded as high as $142.88 and last traded at $142.75, with a volume of 1047577 shares traded. The stock had previously closed at $140.14.

Analyst Upgrades and Downgrades

NET has been the topic of a number of recent analyst reports. The Goldman Sachs Group raised Cloudflare from a “sell” rating to a “buy” rating and upped their price objective for the stock from $77.00 to $140.00 in a report on Thursday, January 2nd. Baird R W downgraded shares of Cloudflare from a “strong-buy” rating to a “hold” rating in a research report on Monday. Stifel Nicolaus upgraded Cloudflare from a “hold” rating to a “buy” rating and boosted their target price for the stock from $95.00 to $136.00 in a research report on Tuesday, December 17th. Mizuho raised their price target on Cloudflare from $102.00 to $125.00 and gave the company a “neutral” rating in a research report on Friday, December 13th. Finally, Morgan Stanley boosted their price objective on shares of Cloudflare from $130.00 to $140.00 and gave the company an “overweight” rating in a research report on Tuesday, January 21st. Three research analysts have rated the stock with a sell rating, eleven have given a hold rating and thirteen have issued a buy rating to the company. According to data from MarketBeat, the company has an average rating of “Hold” and a consensus price target of $112.32.

Cloudflare Price Performance

The company has a quick ratio of 3.37, a current ratio of 3.37 and a debt-to-equity ratio of 1.32. The company has a 50 day moving average of $115.82 and a 200-day moving average of $95.58. The stock has a market capitalization of $49.33 billion, a P/E ratio of -552.54 and a beta of 1.12.

Cloudflare (NYSE:NET) last posted its earnings results on Thursday, November 7th. The company reported ($0.03) EPS for the quarter, meeting the consensus estimate of ($0.03). The firm had revenue of $430.08 million for 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%. Sell-side analysts predict that Cloudflare, Inc. will post -0.1 EPS for the current year.

Insider Activity

In other news, CFO Thomas J. Seifert sold 15,000 shares of the company’s stock in a transaction on 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 represents a 5.60 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, COO Michelle Zatlyn sold 25,640 shares of Cloudflare stock in a transaction that occurred on Wednesday, November 27th. The shares were sold at an average price of $100.44, for a total transaction of $2,575,281.60. Following the completion of the sale, the chief operating officer now owns 172,959 shares of the company’s stock, valued at $17,372,001.96. This trade represents a 12.91 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 616,257 shares of company stock worth $67,256,408 over the last 90 days. 12.83% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Cloudflare

Several hedge funds have recently made changes to their positions in NET. Stratos Wealth Partners LTD. grew its stake in Cloudflare by 1.2% during the fourth quarter. Stratos Wealth Partners LTD. now owns 6,583 shares of the company’s stock worth $709,000 after buying an additional 77 shares during the last quarter. Atomi Financial Group Inc. boosted its position in shares of Cloudflare by 3.3% in the 4th quarter. Atomi Financial Group Inc. now owns 2,966 shares of the company’s stock worth $319,000 after purchasing an additional 94 shares during the last quarter. Chicago Partners Investment Group LLC grew its position in shares of Cloudflare by 4.3% during the 4th quarter. Chicago Partners Investment Group LLC now owns 2,529 shares of the company’s stock worth $293,000 after buying an additional 105 shares during the period. D.A. Davidson & CO. boosted its position in shares of Cloudflare by 0.5% during the fourth quarter. D.A. Davidson & CO. now owns 21,075 shares of the company’s stock worth $2,269,000 after purchasing an additional 106 shares in the last quarter. Finally, Amalgamated Bank raised its stake in Cloudflare by 0.5% during the 4th quarter. Amalgamated Bank now owns 20,002 shares of the company’s stock worth $2,154,000 after buying an additional 107 shares during the period. Institutional investors own 82.68% of the company’s stock.

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.