Cloudflare (NYSE:NET) Trading Down 5.1% - Should You Sell?

Cloudflare, Inc. (NYSE:NET - Get Free Report)'s share price was down 5.1% on Thursday . The company traded as low as $183.75 and last traded at $183.64. Approximately 825,150 shares changed hands during trading, a decline of 78% from the average daily volume of 3,729,253 shares. The stock had previously closed at $193.49.

Analyst Upgrades and Downgrades

A number of research firms have weighed in on NET. Guggenheim raised their price target on Cloudflare from $68.00 to $70.00 and gave the company a "sell" rating in a research note on Friday, May 9th. Bank of America upgraded Cloudflare from an "underperform" rating to a "buy" rating and boosted their price target for the company from $60.00 to $160.00 in a research report on Tuesday, March 25th. Mizuho raised Cloudflare from a "neutral" rating to an "outperform" rating and set a $135.00 price objective on the stock in a report on Wednesday, April 16th. Needham & Company LLC lifted their price objective on Cloudflare from $145.00 to $160.00 and gave the company a "buy" rating in a report on Friday, May 9th. Finally, Morgan Stanley boosted their price target on Cloudflare from $144.00 to $150.00 and gave the stock an "overweight" rating in a research note on Friday, May 9th. Three investment analysts have rated the stock with a sell rating, ten have issued a hold rating, fifteen have assigned a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target of $145.92.

Cloudflare Price Performance

The firm has a market capitalization of $63.02 billion, a price-to-earnings ratio of -790.57 and a beta of 1.85. The company's 50 day moving average is $168.30 and its 200-day moving average is $140.02. 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 released its quarterly earnings results on Thursday, May 8th. The company reported $0.16 earnings per share for the quarter, missing the consensus estimate of $0.17 by ($0.01). Cloudflare had a negative net margin of 4.62% and a negative return on equity of 6.31%. The company had revenue of $479.09 million during the quarter, compared to the consensus estimate of $469.49 million. During the same period in the prior year, the company earned $0.16 earnings per share. The firm's revenue was up 26.5% compared to the same quarter last year. Equities research analysts anticipate that Cloudflare, Inc. will post -0.11 earnings per share for the current year.

Insider Transactions at Cloudflare

In other Cloudflare news, CFO Thomas J. Seifert sold 41,556 shares of the company's stock in a transaction dated Tuesday, May 20th. The shares were sold at an average price of $156.78, for a total value of $6,515,149.68. Following the completion of the sale, the chief financial officer directly owned 241,550 shares of the company's stock, valued at approximately $37,870,209. This represents a 14.68% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, insider Michelle Zatlyn sold 35,098 shares of the company's stock in a transaction dated 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 sale, the insider directly owned 6,390 shares of the company's stock, valued at $1,002,143.70. The trade was a 84.60% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 581,060 shares of company stock worth $95,040,197. Company insiders own 10.89% of the company's stock.

Hedge Funds Weigh In On Cloudflare

Hedge funds have recently made changes to their positions in the stock. Mather Group LLC. lifted its stake in shares of Cloudflare by 1,188.2% in the 1st quarter. Mather Group LLC. now owns 219 shares of the company's stock valued at $25,000 after acquiring an additional 202 shares during the last quarter. NBC Securities Inc. bought a new position in shares of Cloudflare during the 1st quarter valued at $27,000. GPS Wealth Strategies Group LLC raised its holdings in Cloudflare by 213.4% in the 1st quarter. GPS Wealth Strategies Group LLC now owns 257 shares of the company's stock worth $29,000 after purchasing an additional 175 shares during the period. MassMutual Private Wealth & Trust FSB raised its holdings in Cloudflare by 115.4% during the first quarter. MassMutual Private Wealth & Trust FSB now owns 265 shares of the company's stock valued at $30,000 after acquiring an additional 142 shares during the period. Finally, Global Financial Private Client LLC grew its position in shares of Cloudflare by 38,100.0% during the first quarter. Global Financial Private Client LLC now owns 382 shares of the company's stock valued at $43,000 after purchasing an additional 381 shares in 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.