Cloudflare (NYSE:NET) Stock Price Down 5.1% - Here's Why

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

Analysts Set New Price Targets

Several brokerages have commented on NET. Royal Bank Of Canada dropped their target price on shares of Cloudflare from $170.00 to $148.00 and set an "outperform" rating for the company in a research report on Thursday, March 13th. 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. UBS Group increased their target price on Cloudflare from $135.00 to $145.00 and gave the stock a "neutral" rating in a report on Friday, May 9th. Guggenheim increased their target price on Cloudflare from $68.00 to $70.00 and gave the stock a "sell" rating in a report on Friday, May 9th. Finally, Needham & Company LLC increased their target price on Cloudflare from $145.00 to $160.00 and gave the stock a "buy" rating in a report on Friday, May 9th. Three investment analysts have rated the stock with a sell rating, ten have assigned a hold rating, fifteen have given a buy rating and one has given a strong buy rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $148.92.

Cloudflare Price Performance

The company's fifty day moving average price is $168.30 and its 200 day moving average price is $140.02. The company has a market capitalization of $62.80 billion, a P/E ratio of -787.74 and a beta of 1.85. 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, May 8th. The company reported $0.16 EPS for the quarter, missing the consensus estimate of $0.17 by ($0.01). The business had revenue of $479.09 million for the quarter, compared to the consensus estimate of $469.49 million. Cloudflare had a negative return on equity of 6.31% and a negative net margin of 4.62%. The firm's revenue for the quarter was up 26.5% compared to the same quarter last year. During the same period in the prior year, the business posted $0.16 earnings per share. As a group, sell-side analysts forecast that Cloudflare, Inc. will post -0.11 EPS for the current year.

Insider Activity at Cloudflare

In related news, insider Michelle Zatlyn sold 35,098 shares of Cloudflare stock in a transaction that occurred on Tuesday, May 20th. The shares were sold at an average price of $156.83, for a total value of $5,504,419.34. Following the transaction, the insider directly owned 6,390 shares of the company's stock, valued at $1,002,143.70. This trade represents a 84.60% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CFO Thomas J. Seifert sold 41,556 shares of the firm's stock in a transaction that occurred on Tuesday, May 20th. The shares were sold at an average price of $156.78, for a total transaction of $6,515,149.68. Following the completion of the sale, the chief financial officer owned 241,550 shares in the company, valued at $37,870,209. This represents a 14.68% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 581,060 shares of company stock valued at $95,040,197 over the last three months. 10.89% of the stock is owned by insiders.

Institutional Trading of Cloudflare

Hedge funds have recently added to or reduced their stakes in the stock. Mather Group LLC. lifted its holdings in shares of Cloudflare by 1,188.2% during the first quarter. Mather Group LLC. now owns 219 shares of the company's stock worth $25,000 after purchasing an additional 202 shares during the period. NBC Securities Inc. acquired a new position in shares of Cloudflare during the first quarter worth $27,000. GPS Wealth Strategies Group LLC lifted its holdings in shares of Cloudflare by 213.4% during the first 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 lifted its holdings in shares of Cloudflare by 115.4% during the first quarter. MassMutual Private Wealth & Trust FSB now owns 265 shares of the company's stock worth $30,000 after purchasing an additional 142 shares during the period. Finally, Global Financial Private Client LLC lifted its holdings 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 worth $43,000 after purchasing an additional 381 shares during the period. Institutional investors and hedge funds own 82.68% of the company's stock.

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.