Cloudflare (NYSE:NET) Shares Gap Down on Insider Selling

Cloudflare, Inc. (NYSE:NET)’s stock price gapped down before the market opened on Friday following insider selling activity. The stock had previously closed at $88.97, but opened at $78.23. Cloudflare shares last traded at $74.06, with a volume of 7,058,292 shares traded.

Specifically, insider Douglas James Kramer sold 6,000 shares of the company’s stock in a transaction on Friday, February 9th. The stock was sold at an average price of $110.08, for a total transaction of $660,480.00. Following the transaction, the insider now owns 216,114 shares of the company’s stock, valued at $23,789,829.12. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. In other news, Director Carl Ledbetter sold 7,962 shares of the business’s stock in a transaction dated Wednesday, February 7th. The stock was sold at an average price of $81.42, for a total transaction of $648,266.04. Following the completion of the transaction, the director now directly owns 1,446,957 shares in the company, valued at approximately $117,811,238.94. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, insider Douglas James Kramer sold 6,000 shares of Cloudflare stock in a transaction that occurred on Friday, February 9th. The stock was sold at an average price of $110.08, for a total transaction of $660,480.00. Following the transaction, the insider now directly owns 216,114 shares in the company, valued at approximately $23,789,829.12. The disclosure for this sale can be found here. In the last quarter, insiders have sold 1,029,347 shares of company stock valued at $100,594,226. 12.83% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

A number of analysts recently commented on NET shares. UBS Group lowered their price objective on shares of Cloudflare from $88.00 to $76.00 and set a “sell” rating for the company in a research report on Friday. KeyCorp lowered their target price on Cloudflare from $132.00 to $94.00 and set an “overweight” rating for the company in a research note on Friday. Bank of America upped their target price on shares of Cloudflare from $52.00 to $60.00 and gave the stock an “underperform” rating in a research note on Friday. Oppenheimer cut their price target on Cloudflare from $122.00 to $110.00 and set an “outperform” rating on the stock in a report on Friday. Finally, JMP Securities lifted their target price on Cloudflare from $75.00 to $90.00 and gave the company a “market outperform” rating in a research report on Wednesday, January 31st. Four equities research analysts have rated the stock with a sell rating, ten have given a hold rating and nine have assigned a buy rating to the company’s stock. According to data from MarketBeat, Cloudflare currently has a consensus rating of “Hold” and an average target price of $90.17.

Cloudflare Price Performance

The company has a current ratio of 3.50, a quick ratio of 3.50 and a debt-to-equity ratio of 1.68. The company’s 50 day moving average is $93.67 and its 200-day moving average is $83.60. The firm has a market capitalization of $25.12 billion, a price-to-earnings ratio of -140.38 and a beta of 1.15.

Cloudflare (NYSE:NET) last announced its quarterly earnings results on Thursday, February 8th. The company reported ($0.06) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.07) by $0.01. Cloudflare had a negative return on equity of 13.22% and a negative net margin of 13.10%. The business had revenue of $362.47 million during the quarter, compared to the consensus estimate of $352.70 million. Equities research analysts anticipate that Cloudflare, Inc. will post -0.2 earnings per share for the current year.

Institutional Trading of Cloudflare

Several hedge funds and other institutional investors have recently modified their holdings of NET. Vanguard Group Inc. lifted its holdings in Cloudflare by 2.7% during the 4th quarter. Vanguard Group Inc. now owns 28,159,189 shares of the company’s stock worth $2,344,534,000 after purchasing an additional 740,914 shares during the last quarter. Capital World Investors increased its stake in Cloudflare by 1.8% during the 4th quarter. Capital World Investors now owns 27,543,956 shares of the company’s stock worth $2,293,310,000 after acquiring an additional 487,308 shares during the period. 1832 Asset Management L.P. lifted its position in shares of Cloudflare by 121.2% during the 4th quarter. 1832 Asset Management L.P. now owns 2,916,600 shares of the company’s stock valued at $242,836,000 after acquiring an additional 1,597,900 shares during the period. Norges Bank acquired a new stake in Cloudflare during the fourth quarter worth about $221,858,000. Finally, Sumitomo Mitsui Trust Holdings Inc. increased its holdings in Cloudflare by 0.9% in the 3rd quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 1,736,212 shares of the company’s stock valued at $109,451,000 after buying an additional 14,984 shares during the period. Institutional investors own 82.68% of the company’s stock.

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.