Cloudflare (NYSE:NET) Sets New 52-Week High – Here’s Why

Cloudflare, Inc. (NYSE:NET)’s share price hit a new 52-week high on Friday . The stock traded as high as $119.69 and last traded at $119.03, with a volume of 22889 shares trading hands. The stock had previously closed at $114.82.

Analyst Ratings Changes

Several equities analysts recently weighed in on the company. Jefferies Financial Group lifted their price target on Cloudflare from $100.00 to $125.00 and gave the company a “hold” rating in a research note on Thursday, December 19th. Royal Bank of Canada lifted 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. Morgan Stanley upgraded Cloudflare from an “equal weight” rating to an “overweight” rating and boosted their price objective for the stock from $92.00 to $130.00 in a research note on Monday, December 2nd. Cantor Fitzgerald began coverage on Cloudflare in a report on Friday. They set a “neutral” rating and a $111.00 target price on the stock. Finally, Scotiabank boosted their target price on Cloudflare from $85.00 to $87.00 and gave the stock a “sector perform” rating in a report on Friday, November 8th. Three analysts have rated the stock with a sell rating, eleven have assigned a hold rating and fourteen have issued a buy rating to the company’s stock. Based on data from MarketBeat, Cloudflare currently has a consensus rating of “Hold” and a consensus price target of $105.30.

Cloudflare Price Performance

The company has a 50 day moving average price of $107.20 and a 200 day moving average price of $91.22. The firm has a market cap of $40.91 billion, a PE ratio of -458.46 and a beta of 1.10. 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 quarterly earnings results on Thursday, November 7th. The company reported ($0.03) EPS for the quarter, hitting the consensus estimate of ($0.03). Cloudflare had a negative return on equity of 7.18% and a negative net margin of 5.97%. The business had revenue of $430.08 million for the quarter, compared to analyst estimates of $423.65 million. On average, sell-side analysts expect that Cloudflare, Inc. will post -0.1 EPS for the current year.

Insider Buying and Selling

In other Cloudflare news, insider Douglas James Kramer sold 3,000 shares of the business’s stock in a transaction on Friday, November 1st. The stock was sold at an average price of $88.60, for a total value of $265,800.00. Following the completion of the transaction, the insider now directly owns 185,386 shares in the company, valued at approximately $16,425,199.60. The trade was a 1.59 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Matthew Prince sold 52,384 shares of the business’s stock in a transaction on Wednesday, November 13th. The shares were sold at an average price of $95.59, for a total transaction of $5,007,386.56. Following the sale, the chief executive officer now directly owns 192,177 shares of the company’s stock, valued at $18,370,199.43. This represents a 21.42 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 524,852 shares of company stock worth $55,386,256 in the last ninety days. Insiders own 12.83% of the company’s stock.

Hedge Funds Weigh In On Cloudflare

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Geode Capital Management LLC boosted its position in Cloudflare by 2.6% in the 3rd quarter. Geode Capital Management LLC now owns 4,834,558 shares of the company’s stock valued at $390,130,000 after buying an additional 121,810 shares during the last quarter. Marshall Wace LLP boosted its position in Cloudflare by 123.4% in the 2nd quarter. Marshall Wace LLP now owns 1,548,535 shares of the company’s stock valued at $128,265,000 after buying an additional 855,334 shares during the last quarter. Charles Schwab Investment Management Inc. boosted its position in Cloudflare by 2.7% in the 3rd quarter. Charles Schwab Investment Management Inc. now owns 1,157,815 shares of the company’s stock valued at $93,656,000 after buying an additional 29,960 shares during the last quarter. Swiss National Bank boosted its position in Cloudflare by 1.1% in the 3rd quarter. Swiss National Bank now owns 893,600 shares of the company’s stock valued at $72,283,000 after buying an additional 10,100 shares during the last quarter. Finally, National Pension Service boosted its position in Cloudflare by 0.9% in the 3rd quarter. National Pension Service now owns 471,923 shares of the company’s stock valued at $38,174,000 after buying an additional 4,062 shares during the last quarter. 82.68% of the stock is owned by hedge funds and other institutional investors.

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.