Cloudflare (NYSE:NET) Stock Gets Price Target Trim from Jefferies Financial Group

Cloudflare (NYSE:NET) had its price target trimmed by Jefferies Financial Group from $350.00 to $320.00 in a research note issued to investors on Monday,Benzinga reports. The firm currently has a hold rating on the stock.

Other research analysts have also recently issued reports about the stock. Citigroup reissued a “market outperform” rating on shares of Cloudflare in a research report on Monday, August 31st. Truist Financial upped their price objective on shares of Cloudflare from $300.00 to $350.00 and gave the stock a “buy” rating in a report on Friday, August 7th. Wall Street Zen downgraded shares of Cloudflare from a “buy” rating to a “hold” rating in a research note on Sunday, October 25th. Benchmark lowered shares of Cloudflare to an “underperform” rating in a report on Tuesday, July 7th. Finally, Wells Fargo & Company boosted their price target on Cloudflare from $380.00 to $400.00 and gave the stock an “overweight” rating in a research report on Wednesday, October 28th. Twenty-four investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and six have issued a Sell rating to the stock. Based on data from MarketBeat.com, Cloudflare currently has an average rating of “Hold” and a consensus target price of $333.21.

Cloudflare Stock Down 2.6%

Shares of Cloudflare stock opened at $266.54 on Monday. The company has a debt-to-equity ratio of 1.22, a current ratio of 1.82 and a quick ratio of 1.82. Cloudflare has a 12-month low of $158.83 and a 12-month high of $370.35. The company’s fifty day simple moving average is $319.83 and its two-hundred day simple moving average is $249.01.

Cloudflare (NYSE:NET) last announced its earnings results on Thursday, August 6th. The company reported $0.29 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.27 by $0.02. The firm had revenue of $696.06 million during the quarter, compared to analyst estimates of $664.66 million. Cloudflare had a negative return on equity of 3.88% and a negative net margin of 8.21%. The business’s revenue was up 35.9% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.21 EPS. As a group, analysts expect that Cloudflare will post 0.03 EPS for the current year.

Insider Buying and Selling at Cloudflare

In other Cloudflare news, Director Carl Ledbetter sold 5,000 shares of the business’s stock in a transaction dated Monday, September 14th. The stock was sold at an average price of $312.22, for a total transaction of $1,561,100.00. Following the completion of the sale, the director directly owned 878,073 shares in the company, valued at $274,151,952.06. The trade was a 0.57% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Michelle Zatlyn sold 33,003 shares of the company’s stock in a transaction that occurred on Tuesday, September 8th. The shares were sold at an average price of $277.43, for a total transaction of $9,156,022.29. Following the sale, the insider directly owned 69,775 shares of the company’s stock, valued at approximately $19,357,678.25. This represents a 32.11% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 259,057 shares of company stock valued at $79,516,905. 10.66% of the stock is owned by company insiders.

Institutional Investors Weigh In On Cloudflare

A number of hedge funds have recently modified their holdings of NET. GK Wealth Management LLC purchased a new position in Cloudflare in the 3rd quarter worth approximately $25,000. Cornerstone Financial Management LLC grew its holdings in Cloudflare by 65.3% during the 2nd quarter. Cornerstone Financial Management LLC now owns 119 shares of the company’s stock valued at $29,000 after buying an additional 47 shares in the last quarter. C M Bidwell & Associates Ltd. purchased a new stake in Cloudflare during the 2nd quarter valued at approximately $30,000. CX Institutional raised its position in shares of Cloudflare by 49.4% during the second quarter. CX Institutional now owns 133 shares of the company’s stock valued at $33,000 after buying an additional 44 shares during the last quarter. Finally, Cape Investment Advisory Inc. bought a new stake in shares of Cloudflare during the second quarter valued at approximately $33,000. Institutional investors own 82.68% of the company’s stock.

More Cloudflare News

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: JPMorgan upgraded Cloudflare from Neutral to Overweight after the recent selloff, arguing the decline has improved the risk-reward and that revenue growth could accelerate. The bank set a $350 price target. JPMorgan upgrades Cloudflare to Overweight
• Positive Sentiment: A Polen Capital investor letter pointed to accelerating revenue growth and a raised outlook as reasons for an outperform view on NET, offering a constructive long-term growth perspective. Cloudflare shares outperform following accelerating revenue growth and raised outlook
• Neutral Sentiment: Cloudflare’s upcoming Q3 results are the key near-term catalyst. The earnings preview coverage highlights the report and investor focus on what comes next for NET, but provides no results yet. Cloudflare reports Q3 results tomorrow
• Negative Sentiment: Valuation remains a concern ahead of earnings. NET has retreated from its October high, while reported insider selling and options-market signals point to caution about a possible post-earnings decline. Insiders sell as options market points to a drop after earnings
• Negative Sentiment: Jefferies lowered its price target to $320 from $350, reflecting a more cautious outlook even though the revised target remains above the price cited in the coverage. Jefferies lowers Cloudflare price target

About Cloudflare

Cloudflare, Inc (NYSE: NET) provides cloud connectivity, security and performance services for websites, applications, corporate networks and other internet-connected resources. Its global network is designed to help organizations improve the reliability, speed and security of digital services while reducing the complexity of managing internet infrastructure.

The company’s offerings include content delivery and authoritative domain name system services, distributed denial-of-service protection, web application and application programming interface security, bot management, and network security tools.