Cloudflare (NYSE:NET) CFO Sells $1,979,800.00 in Stock

Key Points

• Cloudflare CFO Thomas Seifert sold 10,000 shares at an average price of $197.98 on April 17 for $1,979,800, a transaction executed under a pre‑arranged Rule 10b5‑1 plan that cut his stake by 4.32% to 221,681 shares.
• Cloudflare slightly beat the quarter with $0.28 EPS (vs. $0.27) and $614.5M revenue (+33.6% YoY), but remains unprofitable with a negative net margin and negative P/E.
• The stock trades near $200 with a ~$70.7B market cap, and analysts hold a consensus Moderate Buy rating with an average price target of $232.62.

Cloudflare, Inc. (NYSE:NET - Get Free Report) CFO Thomas Seifert sold 10,000 shares of the stock in a transaction on Friday, April 17th. The stock was sold at an average price of $197.98, for a total value of $1,979,800.00. Following the completion of the sale, the chief financial officer owned 221,681 shares of the company's stock, valued at $43,888,404.38. The trade was a 4.32% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Cloudflare Price Performance

NET traded up $3.47 on Friday, hitting $200.85. 3,630,588 shares of the company's stock traded hands, compared to its average volume of 4,791,768. The company's 50 day simple moving average is $195.94 and its 200-day simple moving average is $201.13. The firm has a market cap of $70.70 billion, a price-to-earnings ratio of -692.56 and a beta of 1.87. Cloudflare, Inc. has a one year low of $100.25 and a one year high of $260.00. The company has a current ratio of 1.98, a quick ratio of 1.98 and a debt-to-equity ratio of 1.35.

Cloudflare (NYSE:NET - Get Free Report) last issued its earnings results on Tuesday, February 10th. The company reported $0.28 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.27 by $0.01. The company had revenue of $614.51 million for the quarter, compared to the consensus estimate of $591.67 million. Cloudflare had a negative return on equity of 7.24% and a negative net margin of 4.72%.The firm's quarterly revenue was up 33.6% on a year-over-year basis. During the same quarter last year, the company earned $0.19 EPS. As a group, research analysts anticipate that Cloudflare, Inc. will post -0.11 EPS for the current year.

Analyst Ratings Changes

Several equities research analysts have recently issued reports on NET shares. Barclays lifted their target price on Cloudflare from $235.00 to $250.00 and gave the stock an "overweight" rating in a report on Wednesday, February 11th. Royal Bank Of Canada increased their price target on Cloudflare from $230.00 to $240.00 and gave the company an "outperform" rating in a research note on Wednesday, February 11th. DZ Bank raised Cloudflare from a "hold" rating to a "buy" rating and set a $215.00 price objective on the stock in a research note on Friday, February 13th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Cloudflare in a report on Wednesday, January 21st. Finally, Cantor Fitzgerald reiterated a "neutral" rating and set a $224.00 target price on shares of Cloudflare in a research report on Wednesday, February 11th. One research analyst has rated the stock with a Strong Buy rating, nineteen have issued a Buy rating, seven have assigned a Hold rating and three have given a Sell rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $232.62.

Hedge Funds Weigh In On Cloudflare

A number of institutional investors and hedge funds have recently made changes to their positions in NET. HM Payson & Co. purchased a new position in shares of Cloudflare in the 4th quarter worth $25,000. Physician Wealth Advisors Inc. boosted its holdings in shares of Cloudflare by 693.3% in the 3rd quarter. Physician Wealth Advisors Inc. now owns 119 shares of the company's stock worth $26,000 after purchasing an additional 104 shares during the period. Wiser Advisor Group LLC purchased a new position in shares of Cloudflare in the 3rd quarter worth approximately $26,000. Westside Investment Management Inc. boosted its holdings in shares of Cloudflare by 100.0% in the 3rd quarter. Westside Investment Management Inc. now owns 130 shares of the company's stock worth $28,000 after purchasing an additional 65 shares during the period. Finally, ORG Wealth Partners LLC boosted its holdings in shares of Cloudflare by 101.4% in the 3rd quarter. ORG Wealth Partners LLC now owns 139 shares of the company's stock worth $30,000 after purchasing an additional 70 shares during the period. 82.68% of the stock is owned by hedge funds and other institutional investors.

Cloudflare Company Profile

Cloudflare, Inc is a global web infrastructure and security company that provides a suite of services designed to improve the performance, reliability and security of internet properties. Its core offerings include a content delivery network (CDN), distributed denial-of-service (DDoS) protection, managed DNS, and a web application firewall (WAF). Cloudflare also provides tools for bot management, SSL/TLS, load balancing and rate limiting to help organizations maintain uptime and protect web applications from attack.

In addition to traditional edge and security services, Cloudflare has expanded into edge computing and developer platforms.

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