Cloudflare (NYSE:NET) Shares Gap Down After Analyst Downgrade

Cloudflare, Inc. (NYSE:NET - Get Free Report)'s stock price gapped down prior to trading on Thursday after Needham & Company LLC lowered their price target on the stock from $185.00 to $145.00. The stock had previously closed at $119.40, but opened at $115.49. Needham & Company LLC currently has a buy rating on the stock. Cloudflare shares last traded at $114.14, with a volume of 757,049 shares trading hands.

NET has been the subject of a number of other reports. The Goldman Sachs Group increased their price target on Cloudflare from $140.00 to $183.00 and gave the stock a "buy" rating in a report on Friday, February 7th. Citigroup upgraded Cloudflare from a "neutral" rating to a "buy" rating and increased their price target for the stock from $95.00 to $145.00 in a report on Friday, January 17th. UBS Group increased their price target on Cloudflare from $130.00 to $165.00 and gave the stock a "neutral" rating in a report on Friday, February 7th. Piper Sandler lowered their price target on Cloudflare from $153.00 to $131.00 and set a "neutral" rating for the company in a report on Thursday. Finally, Stifel Nicolaus increased their price target on Cloudflare from $136.00 to $175.00 and gave the stock a "buy" rating in a report on Friday, February 7th. Four equities research analysts have rated the stock with a sell rating, twelve have assigned a hold rating and eleven have issued a buy rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $133.80.

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Insider Transactions at Cloudflare

In related news, CFO Thomas J. Seifert sold 15,000 shares of the firm's stock in a transaction that occurred on Wednesday, December 18th. The stock was sold at an average price of $112.72, for a total transaction of $1,690,800.00. Following the transaction, the chief financial officer now owns 252,869 shares in the company, valued at $28,503,393.68. This trade represents a 5.60 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Douglas James Kramer sold 2,481 shares of the firm's stock in a transaction that occurred on Monday, February 3rd. The stock was sold at an average price of $131.66, for a total value of $326,648.46. Following the transaction, the insider now owns 175,688 shares in the company, valued at $23,131,082.08. This represents a 1.39 % decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 571,766 shares of company stock valued at $73,804,307. Corporate insiders own 12.83% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in NET. Groupama Asset Managment purchased a new position in Cloudflare during the 4th quarter worth approximately $269,200,000. Norges Bank purchased a new position in shares of Cloudflare in the 4th quarter valued at approximately $249,544,000. American Century Companies Inc. grew its stake in shares of Cloudflare by 82.0% in the 4th quarter. American Century Companies Inc. now owns 2,257,601 shares of the company's stock valued at $243,098,000 after purchasing an additional 1,017,399 shares during the last quarter. Fred Alger Management LLC grew its stake in shares of Cloudflare by 856.3% in the 4th quarter. Fred Alger Management LLC now owns 934,286 shares of the company's stock valued at $100,604,000 after purchasing an additional 836,591 shares during the last quarter. Finally, Invesco Ltd. grew its stake in shares of Cloudflare by 292.5% in the 4th quarter. Invesco Ltd. now owns 1,078,921 shares of the company's stock valued at $116,178,000 after purchasing an additional 804,059 shares during the last quarter. Hedge funds and other institutional investors own 82.68% of the company's stock.

Cloudflare Stock Down 3.0 %

The firm has a 50 day simple moving average of $136.44 and a two-hundred day simple moving average of $108.28. The company has a market capitalization of $39.98 billion, a PE ratio of -524.94 and a beta of 1.27. 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 - Get Free Report) last announced its earnings results on Thursday, February 6th. The company reported ($0.03) earnings per share for the quarter, missing the consensus estimate of $0.18 by ($0.21). Cloudflare had a negative net margin of 4.72% and a negative return on equity of 5.52%. Research analysts expect that Cloudflare, Inc. will post -0.11 EPS for the current year.

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.

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