Cloudflare (NYSE:NET) Shares Gap Down - Here's What Happened

Cloudflare, Inc. (NYSE:NET - Get Free Report)'s share price gapped down prior to trading on Friday . The stock had previously closed at $95.66, but opened at $88.45. Cloudflare shares last traded at $88.59, with a volume of 1,238,821 shares traded.

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on the stock. Susquehanna lifted their target price on shares of Cloudflare from $80.00 to $85.00 and gave the stock a "neutral" rating in a research report on Monday, August 5th. Needham & Company LLC reissued a "buy" rating and issued a $135.00 target price on shares of Cloudflare in a research report on Friday, August 2nd. Robert W. Baird lifted their target price on shares of Cloudflare from $94.00 to $100.00 and gave the stock an "outperform" rating in a research report on Friday, August 2nd. Piper Sandler lifted their target price on shares of Cloudflare from $83.00 to $92.00 and gave the stock a "neutral" rating in a research report on Friday. Finally, Wells Fargo & Company lifted their target price on shares of Cloudflare from $105.00 to $110.00 and gave the stock an "overweight" rating in a research report on Friday. Four equities research analysts have rated the stock with a sell rating, twelve have assigned a hold rating and ten have assigned a buy rating to the company. According to MarketBeat.com, Cloudflare has a consensus rating of "Hold" and a consensus target price of $92.88.

Cloudflare Price Performance

The company has a quick ratio of 3.51, a current ratio of 3.51 and a debt-to-equity ratio of 1.46. The company has a market capitalization of $31.20 billion, a P/E ratio of -314.83 and a beta of 1.10. The company's 50-day simple moving average is $84.77 and its 200 day simple moving average is $80.74.

Cloudflare (NYSE:NET - Get Free Report) last posted its quarterly earnings data on Thursday, November 7th. The company reported ($0.03) earnings per share (EPS) for the quarter, hitting the consensus estimate of ($0.03). The business had revenue of $430.08 million during the quarter, compared to the consensus estimate of $423.65 million. Cloudflare had a negative net margin of 6.90% and a negative return on equity of 8.54%. As a group, sell-side analysts expect that Cloudflare, Inc. will post -0.13 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, COO Michelle Zatlyn sold 64,100 shares of the company's stock in a transaction on Monday, October 7th. The shares were sold at an average price of $81.60, for a total transaction of $5,230,560.00. Following the completion of the sale, the chief operating officer now directly owns 192,177 shares of the company's stock, valued at approximately $15,681,643.20. This represents a 0.00 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. In other Cloudflare news, insider Douglas James Kramer sold 3,000 shares of the stock in a transaction on Tuesday, September 3rd. The shares were sold at an average price of $81.53, for a total value of $244,590.00. Following the completion of the sale, the insider now directly owns 185,386 shares of the company's stock, valued at $15,114,520.58. This represents a 0.00 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, COO Michelle Zatlyn sold 64,100 shares of the stock in a transaction on Monday, October 7th. The shares were sold at an average price of $81.60, for a total transaction of $5,230,560.00. Following the completion of the sale, the chief operating officer now directly owns 192,177 shares of the company's stock, valued at approximately $15,681,643.20. This trade represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 477,043 shares of company stock valued at $39,737,342. Company insiders own 12.83% of the company's stock.

Institutional Trading of Cloudflare

A number of hedge funds have recently bought and sold shares of NET. Parnassus Investments LLC raised its stake in shares of Cloudflare by 1,851.9% in the 3rd quarter. Parnassus Investments LLC now owns 138,410 shares of the company's stock valued at $11,196,000 after buying an additional 131,319 shares in the last quarter. B. Metzler seel. Sohn & Co. Holding AG acquired a new position in shares of Cloudflare in the 3rd quarter valued at $591,000. Banque Cantonale Vaudoise raised its stake in shares of Cloudflare by 20.8% in the 3rd quarter. Banque Cantonale Vaudoise now owns 36,753 shares of the company's stock valued at $2,973,000 after buying an additional 6,326 shares in the last quarter. Fifth Third Wealth Advisors LLC acquired a new position in shares of Cloudflare in the 3rd quarter valued at $2,677,000. Finally, Pathstone Holdings LLC raised its stake in shares of Cloudflare by 5.2% in the 3rd quarter. Pathstone Holdings LLC now owns 24,101 shares of the company's stock valued at $1,950,000 after buying an additional 1,200 shares in the last quarter. 82.68% of the stock is 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.