Cloudflare (NYSE:NET) Price Target Raised to $235.00

Key Points

• Cloudflare's price target has been raised by Morgan Stanley from $225.00 to $235.00, indicating a potential upside of 13.21% from the stock's previous close.
• The company recently reported a quarterly earnings per share of $0.21, surpassing analysts' expectations, with a year-over-year revenue increase of 27.8% to $512.32 million.
• Insider trading activity included CEO Matthew Prince selling over 52,000 shares of Cloudflare stock, decreasing his ownership by 12.08%.

Cloudflare (NYSE:NET - Get Free Report) had its price objective boosted by equities researchers at Morgan Stanley from $225.00 to $235.00 in a research report issued to clients and investors on Friday,Benzinga reports. The firm currently has an "overweight" rating on the stock. Morgan Stanley's price objective suggests a potential upside of 13.21% from the stock's previous close.

NET has been the topic of a number of other research reports. Oppenheimer reiterated an "outperform" rating and set a $200.00 price objective (up previously from $165.00) on shares of Cloudflare in a research note on Thursday, June 5th. Wells Fargo & Company raised their price objective on shares of Cloudflare from $200.00 to $225.00 and gave the company an "overweight" rating in a research note on Monday, July 21st. CICC Research upgraded shares of Cloudflare from a "market perform" rating to an "outperform" rating and set a $154.00 price objective on the stock in a research note on Monday, May 12th. Mizuho raised their price objective on shares of Cloudflare from $155.00 to $220.00 and gave the company an "outperform" rating in a research note on Wednesday, July 16th. Finally, KeyCorp started coverage on shares of Cloudflare in a report on Friday, June 6th. They set an "overweight" rating and a $210.00 target price for the company. Three analysts have rated the stock with a sell rating, nine have given a hold rating, fifteen have issued a buy rating and one has assigned a strong buy rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $171.44.

Cloudflare Price Performance

Shares of NYSE:NET opened at $207.57 on Friday. The firm's 50 day moving average is $182.66 and its two-hundred day moving average is $147.77. Cloudflare has a 52 week low of $69.26 and a 52 week high of $210.98. The firm has a market capitalization of $71.95 billion, a P/E ratio of -902.48 and a beta of 1.85. The company has a current ratio of 3.20, a quick ratio of 3.20 and a debt-to-equity ratio of 0.90.

Cloudflare (NYSE:NET - Get Free Report) last posted its quarterly earnings data 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 for the quarter, compared to analyst estimates of $501.58 million. During the same quarter last year, the business earned $0.20 earnings per share. The business's revenue for the quarter was up 27.8% on a year-over-year basis. Analysts anticipate that Cloudflare will post -0.11 earnings per share for the current year.

Insider Buying and Selling at Cloudflare

In other news, CEO Matthew Prince sold 52,384 shares of the firm's stock in a transaction on Friday, June 13th. The shares were sold at an average price of $171.25, for a total transaction of $8,970,760.00. Following the transaction, the chief executive officer owned 381,213 shares in the company, valued at approximately $65,282,726.25. This trade represents a 12.08% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Michelle Zatlyn sold 35,098 shares of Cloudflare stock in a transaction on Tuesday, May 20th. The stock was sold at an average price of $156.83, for a total transaction of $5,504,419.34. Following the completion of the transaction, the insider owned 6,390 shares in the company, valued at $1,002,143.70. This trade represents a 84.60% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 688,062 shares of company stock worth $121,498,887 over the last quarter. Company insiders own 10.89% of the company's stock.

Institutional Trading of Cloudflare

Several institutional investors have recently made changes to their positions in the business. Envestnet Asset Management Inc. boosted its position in shares of Cloudflare by 58.6% during the 2nd quarter. Envestnet Asset Management Inc. now owns 322,600 shares of the company's stock valued at $63,175,000 after acquiring an additional 119,150 shares in the last quarter. Nisa Investment Advisors LLC boosted its position in shares of Cloudflare by 25.5% during the 2nd quarter. Nisa Investment Advisors LLC now owns 22,175 shares of the company's stock valued at $4,343,000 after acquiring an additional 4,500 shares in the last quarter. Resonant Capital Advisors LLC acquired a new stake in shares of Cloudflare during the 2nd quarter valued at about $229,000. Wealthfront Advisers LLC boosted its position in shares of Cloudflare by 13.0% during the 2nd quarter. Wealthfront Advisers LLC now owns 31,003 shares of the company's stock valued at $6,071,000 after acquiring an additional 3,556 shares in the last quarter. Finally, Atlatl Advisers LLC boosted its position in shares of Cloudflare by 2.9% during the 2nd quarter. Atlatl Advisers LLC now owns 3,160 shares of the company's stock valued at $619,000 after acquiring an additional 90 shares in the last quarter. 82.68% of the stock is currently owned by institutional investors and hedge funds.

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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