Cloudflare (NYSE:NET) Shares Gap Down Following Insider Selling

Cloudflare, Inc. (NYSE:NET - Get Free Report)'s share price gapped down before the market opened on Friday following insider selling activity. The stock had previously closed at $88.97, but opened at $78.23. Cloudflare shares last traded at $74.06, with a volume of 7,058,292 shares trading hands.

Specifically, Director Carl Ledbetter sold 7,962 shares of the firm's stock in a transaction dated Wednesday, February 7th. The stock was sold at an average price of $81.42, for a total transaction of $648,266.04. Following the completion of the sale, the director now directly owns 1,446,957 shares in the company, valued at $117,811,238.94. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. In other Cloudflare news, insider Douglas James Kramer sold 3,000 shares of Cloudflare stock in a transaction that occurred on Monday, March 4th. The stock was sold at an average price of $99.64, for a total transaction of $298,920.00. Following the sale, the insider now directly owns 205,238 shares in the company, valued at approximately $20,449,914.32. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Carl Ledbetter sold 7,962 shares of the stock in a transaction that occurred on Wednesday, February 7th. The shares were sold at an average price of $81.42, for a total value of $648,266.04. Following the transaction, the director now owns 1,446,957 shares of the company's stock, valued at $117,811,238.94. The disclosure for this sale can be found here. Over the last three months, insiders sold 1,029,347 shares of company stock worth $100,594,226. 12.83% of the stock is currently owned by company insiders.

Analyst Ratings Changes

A number of research firms have commented on NET. Bank of America increased their price objective on shares of Cloudflare from $52.00 to $60.00 and gave the company an "underperform" rating in a research note on Friday. JMP Securities lifted their price target on Cloudflare from $75.00 to $90.00 and gave the stock a "market outperform" rating in a research note on Wednesday, January 31st. DZ Bank cut Cloudflare from a "buy" rating to a "hold" rating and set a $110.00 price objective on the stock. in a research note on Tuesday, February 13th. TD Cowen decreased their target price on Cloudflare from $117.00 to $110.00 and set a "buy" rating for the company in a research report on Friday. Finally, Susquehanna upped their price target on Cloudflare from $75.00 to $115.00 and gave the company a "neutral" rating in a research report on Friday, February 9th. Four equities research analysts have rated the stock with a sell rating, ten have assigned a hold rating and nine have assigned a buy rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $90.17.

Cloudflare Stock Down 16.2 %

The stock has a market cap of $25.16 billion, a P/E ratio of -135.49 and a beta of 1.15. The firm has a 50 day simple moving average of $93.67 and a two-hundred day simple moving average of $83.47. The company has a debt-to-equity ratio of 1.68, a quick ratio of 3.50 and a current ratio of 3.50.

Cloudflare (NYSE:NET - Get Free Report) last issued its quarterly earnings data on Thursday, February 8th. The company reported ($0.06) earnings per share for the quarter, beating analysts' consensus estimates of ($0.07) by $0.01. The business had revenue of $362.47 million for the quarter, compared to analysts' expectations of $352.70 million. Cloudflare had a negative net margin of 14.19% and a negative return on equity of 15.92%. Equities research analysts predict that Cloudflare, Inc. will post -0.2 earnings per share for the current year.

Institutional Investors Weigh In On Cloudflare

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. raised its stake in shares of Cloudflare by 2.7% in the 4th quarter. Vanguard Group Inc. now owns 28,159,189 shares of the company's stock worth $2,344,534,000 after buying an additional 740,914 shares in the last quarter. Capital World Investors raised its position in Cloudflare by 1.8% in the fourth quarter. Capital World Investors now owns 27,543,956 shares of the company's stock worth $2,293,310,000 after acquiring an additional 487,308 shares in the last quarter. 1832 Asset Management L.P. lifted its holdings in Cloudflare by 121.2% in the 4th quarter. 1832 Asset Management L.P. now owns 2,916,600 shares of the company's stock valued at $242,836,000 after acquiring an additional 1,597,900 shares during the last quarter. Norges Bank bought a new position in shares of Cloudflare during the 4th quarter valued at about $221,858,000. Finally, Sumitomo Mitsui Trust Holdings Inc. grew its stake in shares of Cloudflare by 0.9% in the 3rd quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 1,736,212 shares of the company's stock worth $109,451,000 after purchasing an additional 14,984 shares during the last quarter. Institutional investors own 82.68% of the company's stock.

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.