Cloudflare (NYSE:NET) Stock Price Expected to Rise, Wells Fargo & Company Analyst Says

Key Points

• Wells Fargo & Company raised its price target for Cloudflare from $225.00 to $250.00, indicating a potential upside of 21.55% from the current stock price.
• Cloudflare's stock traded down 1.0% to $205.68, with a market capitalization of $71.29 billion and a one-year price range of $69.26 to $210.98.
• Cloudflare recently reported earnings of $0.21 per share, exceeding estimates, and showing a revenue increase of 27.8% year-over-year to $512.32 million.

Cloudflare (NYSE:NET - Get Free Report) had its price target increased by equities research analysts at Wells Fargo & Company from $225.00 to $250.00 in a report released on Friday,Benzinga reports. The brokerage presently has an "overweight" rating on the stock. Wells Fargo & Company's price objective would indicate a potential upside of 21.55% from the company's current price.

Other equities analysts have also issued research reports about the company. Oppenheimer reaffirmed an "outperform" rating and set a $200.00 price objective (up previously from $165.00) on shares of Cloudflare in a report on Thursday, June 5th. UBS Group lifted their price target on shares of Cloudflare from $145.00 to $200.00 and gave the company a "neutral" rating in a research report on Thursday, July 24th. Susquehanna reduced their price target 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. Guggenheim lifted their price target on shares of Cloudflare from $70.00 to $111.00 and gave the company a "sell" rating in a research report on Friday. Finally, DZ Bank reiterated a "sell" rating and set a $170.00 price target on shares of Cloudflare in a research report on Tuesday, July 22nd. Three research analysts have rated the stock with a sell rating, nine have given a hold rating, fifteen have issued a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat.com, Cloudflare currently has an average rating of "Moderate Buy" and a consensus price target of $177.08.

Cloudflare Stock Down 1.0%

NET stock traded down $2.00 on Friday, reaching $205.68. 2,930,590 shares of the company traded hands, compared to its average volume of 3,706,940. The company has a market cap of $71.29 billion, a P/E ratio of -894.25 and a beta of 1.85. The firm has a fifty day simple moving average of $182.66 and a 200-day simple moving average of $147.77. Cloudflare has a one year low of $69.26 and a one year high of $210.98. The company has a debt-to-equity ratio of 0.90, a current ratio of 3.20 and a quick ratio of 3.20.

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

Insider Transactions at Cloudflare

In other Cloudflare news, Director Carl Ledbetter sold 15,000 shares of the 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 completion of the sale, the director directly owned 1,043,073 shares of the company's stock, valued at approximately $208,458,139.05. This trade represents a 1.42% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Michelle Zatlyn sold 25,641 shares of the 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 of the company's stock, valued at $1,218,445.20. The trade was a 80.05% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 688,062 shares of company stock worth $121,498,887. 10.89% of the stock is owned by corporate insiders.

Institutional Trading of Cloudflare

A number of hedge funds have recently added to or reduced their stakes in the stock. Capital World Investors lifted its position in Cloudflare by 0.7% during the 4th quarter. Capital World Investors now owns 35,409,307 shares of the company's stock worth $3,812,942,000 after acquiring an additional 260,415 shares during the period. Vanguard Group Inc. raised its stake in shares of Cloudflare by 1.8% during the 1st quarter. Vanguard Group Inc. now owns 30,836,909 shares of the company's stock worth $3,475,011,000 after buying an additional 538,850 shares in the last quarter. Geode Capital Management LLC raised its stake in shares of Cloudflare by 1.4% during the 4th quarter. Geode Capital Management LLC now owns 4,903,219 shares of the company's stock worth $526,986,000 after buying an additional 68,661 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in shares of Cloudflare by 33.5% during the 1st 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 buying an additional 786,063 shares in the last quarter. Finally, American Century Companies Inc. raised its stake in shares of Cloudflare by 34.5% during the 1st quarter. American Century Companies Inc. now owns 3,037,420 shares of the company's stock worth $342,287,000 after buying an additional 779,819 shares in the last quarter. 82.68% of the stock is 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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