Cloudflare (NYSE:NET) Price Target Raised to $200.00 at Scotiabank

Key Points

• The price target for Cloudflare (NYSE: NET) has been raised by Scotiabank from $135.00 to $200.00, maintaining a "sector perform" rating.
• Other analysts, including JMP Securities and KeyCorp, have also increased their price targets for Cloudflare to as high as $235.00, reflecting positive sentiment around the stock.
• Cloudflare reported a 27.8% year-over-year revenue increase for the last quarter, exceeding analyst expectations with earnings of $0.21 per share.

Cloudflare (NYSE:NET - Get Free Report) had its price objective increased by analysts at Scotiabank from $135.00 to $200.00 in a report issued on Friday,Benzinga reports. The firm presently has a "sector perform" rating on the stock. Scotiabank's price objective would indicate a potential downside of 0.23% from the stock's previous close.

NET has been the subject of a number of other reports. JMP Securities increased their price target on Cloudflare from $180.00 to $225.00 and gave the stock a "market outperform" rating in a report on Monday. KeyCorp increased their price target on Cloudflare from $210.00 to $235.00 and gave the company an "overweight" rating in a research report on Friday. Citigroup reaffirmed an "outperform" rating on shares of Cloudflare in a research report on Monday. Cowen reiterated a "buy" rating on shares of Cloudflare in a report on Monday, June 16th. Finally, Capital One Financial upgraded Cloudflare from a "hold" rating to a "strong-buy" rating in a report on Thursday, May 8th. Three investment analysts have rated the stock with a sell rating, nine have given a hold rating, fifteen have issued a buy rating and one has given a strong buy rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $186.88.

Cloudflare Price Performance

Shares of NET traded down $7.22 during trading hours on Friday, hitting $200.46. 6,446,656 shares of the stock were exchanged, compared to its average volume of 3,735,938. The company has a debt-to-equity ratio of 0.90, a quick ratio of 3.20 and a current ratio of 3.20. Cloudflare has a 12-month low of $69.26 and a 12-month high of $211.27. The company has a market cap of $69.48 billion, a price-to-earnings ratio of -871.57 and a beta of 1.85. The stock's 50-day moving average price is $182.66 and its two-hundred day moving average price is $147.77.

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

Insider Transactions at Cloudflare

In related news, insider Michelle Zatlyn sold 25,641 shares of Cloudflare stock in a transaction that occurred on Thursday, July 17th. The stock was sold at an average price of $190.68, for a total value of $4,889,225.88. Following the sale, the insider directly owned 6,390 shares in the company, valued at $1,218,445.20. The trade was a 80.05% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CFO Thomas J. Seifert sold 59,130 shares of Cloudflare stock in a transaction that occurred on Monday, July 28th. The shares were sold at an average price of $200.30, for a total value of $11,843,739.00. Following the completion of the sale, the chief financial officer owned 241,550 shares in the company, valued at approximately $48,382,465. This trade represents a 19.67% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 688,062 shares of company stock valued at $121,498,887. 10.89% of the stock is owned by company insiders.

Institutional Trading of Cloudflare

Institutional investors have recently modified their holdings of the business. Capital World Investors grew its holdings in Cloudflare by 0.7% in the fourth quarter. Capital World Investors now owns 35,409,307 shares of the company's stock valued at $3,812,942,000 after purchasing an additional 260,415 shares during the last quarter. Vanguard Group Inc. raised its holdings in shares of Cloudflare by 1.8% in the first quarter. Vanguard Group Inc. now owns 30,836,909 shares of the company's stock worth $3,475,011,000 after acquiring an additional 538,850 shares during the last quarter. Geode Capital Management LLC raised its holdings in shares of Cloudflare by 1.4% in the fourth quarter. Geode Capital Management LLC now owns 4,903,219 shares of the company's stock worth $526,986,000 after acquiring an additional 68,661 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in shares of Cloudflare by 33.5% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 3,129,030 shares of the company's stock worth $352,610,000 after acquiring an additional 786,063 shares during the last quarter. Finally, American Century Companies Inc. raised its holdings in shares of Cloudflare by 34.5% in the first quarter. American Century Companies Inc. now owns 3,037,420 shares of the company's stock worth $342,287,000 after acquiring an additional 779,819 shares during the last quarter. 82.68% of the stock is currently 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.

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