Cloudflare (NYSE:NET) Given New $240.00 Price Target at Mizuho

Key Points

• Mizuho has raised Cloudflare's price target from $220.00 to $240.00, indicating a potential upside of 15.79% from the stock's previous close.
• Cloudflare's stock saw a slight decline of 0.2%, trading at $207.27 amid a trading volume that exceeded its average.
• Insider selling activity was noted, with CFO Thomas J. Seifert selling over 59,000 shares, representing a 19.67% decrease in his ownership stake.

Cloudflare (NYSE:NET - Get Free Report) had its price objective hoisted by equities researchers at Mizuho from $220.00 to $240.00 in a research report issued to clients and investors on Friday,Benzinga reports. The brokerage currently has an "outperform" rating on the stock. Mizuho's target price would suggest a potential upside of 15.79% from the stock's previous close.

A number of other analysts have also recently issued reports on NET. JMP Securities increased their price objective on shares of Cloudflare from $180.00 to $225.00 and gave the stock a "market outperform" rating in a research note on Monday. Susquehanna lowered their price objective on shares of Cloudflare from $170.00 to $140.00 and set a "neutral" rating for the company in a research report on Monday, May 12th. Capital One Financial upgraded shares of Cloudflare from a "hold" rating to a "strong-buy" rating in a research report on Thursday, May 8th. Royal Bank Of Canada increased their price objective on shares of Cloudflare from $210.00 to $228.00 and gave the company an "outperform" rating in a research report on Friday. Finally, Cowen reissued a "buy" rating on shares of Cloudflare in a research report on Monday, June 16th. Three analysts have rated the stock with a sell rating, nine have issued a hold rating, fifteen have issued a buy rating and one has given a strong buy rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $183.28.

Cloudflare Stock Down 0.2%

Shares of NYSE NET traded down $0.41 during midday trading on Friday, hitting $207.27. The stock had a trading volume of 4,022,302 shares, compared to its average volume of 3,717,644. The company has a market cap of $71.84 billion, a P/E ratio of -898.78 and a beta of 1.85. The business's 50 day moving average is $182.66 and its 200-day moving average is $147.77. Cloudflare has a 52 week low of $69.26 and a 52 week high of $211.27. The company has a quick ratio of 3.20, a current ratio of 3.20 and a debt-to-equity ratio of 0.90.

Cloudflare (NYSE:NET - Get Free Report) last announced its earnings results on Thursday, July 31st. The company reported $0.21 EPS for the quarter, beating analysts' consensus estimates of $0.18 by $0.03. Cloudflare had a negative net margin of 4.62% and a negative return on equity of 6.31%. The business had revenue of $512.32 million during the quarter, compared to analysts' expectations of $501.58 million. During the same period in the prior year, the company earned $0.20 earnings per share. The firm's revenue was up 27.8% on a year-over-year basis. As a group, analysts predict that Cloudflare will post -0.11 EPS for the current year.

Insider Activity at Cloudflare

In other Cloudflare news, CFO Thomas J. Seifert sold 59,130 shares of the firm's stock in a transaction that occurred on Monday, July 28th. The shares were sold at an average price of $200.30, for a total transaction of $11,843,739.00. Following the sale, the chief financial officer owned 241,550 shares of the company's stock, valued at approximately $48,382,465. This trade represents a 19.67% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Carl Ledbetter sold 15,000 shares of the firm's stock in a transaction that occurred on Monday, July 28th. The stock was sold at an average price of $199.85, for a total transaction of $2,997,750.00. Following the sale, the director directly owned 1,043,073 shares in the company, valued at approximately $208,458,139.05. The trade was a 1.42% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 688,062 shares of company stock valued at $121,498,887 in the last quarter. Company insiders own 10.89% of the company's stock.

Institutional Trading of Cloudflare

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. ORG Partners LLC raised its holdings in Cloudflare by 11.9% during the second quarter. ORG Partners LLC now owns 498 shares of the company's stock worth $92,000 after purchasing an additional 53 shares in the last quarter. Fiduciary Planning LLC grew its position in shares of Cloudflare by 3.0% during the second quarter. Fiduciary Planning LLC now owns 1,854 shares of the company's stock worth $363,000 after acquiring an additional 54 shares during the last quarter. CreativeOne Wealth LLC grew its position in shares of Cloudflare by 0.8% during the fourth quarter. CreativeOne Wealth LLC now owns 6,982 shares of the company's stock worth $752,000 after acquiring an additional 58 shares during the last quarter. Yousif Capital Management LLC grew its position in shares of Cloudflare by 1.9% during the second quarter. Yousif Capital Management LLC now owns 4,044 shares of the company's stock worth $792,000 after acquiring an additional 75 shares during the last quarter. Finally, Smartleaf Asset Management LLC grew its position in shares of Cloudflare by 6.2% during the first quarter. Smartleaf Asset Management LLC now owns 1,320 shares of the company's stock worth $152,000 after acquiring an additional 77 shares during the last quarter. Institutional investors and hedge funds 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.

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